Q1 2022 TotalEnergies SE Earnings Call
Okay.
Ladies and gentlemen, thank you for standing by the final.
Total Energy's first quarter 2022 results conference call at this time, all participants are in a listen only mode. After the speech there will be a question and answer session to ask a question. During the session you will need to press star one on your telephone I must advise you that this conference is being recorded.
The 28 to play post 2022.
I'd now like to hand, the conference over to Mr. Patrick <unk>.
C E O of to tell it empties on Mr. Young P. A C.
CFO of two time that you. Please go ahead Sir.
Good morning, and Hello to everyone. We have come to this comes from score for this first quarter 2022.
Given the Q2 quarter or more than the market volatility.
Joining the call to talk about.
We are navigating this environment and to answer your question from the perspective of the management and the board I am.
Today, we drop ship and we will present you with the results until my initial remarks and lender Q&A.
So to that point it was a month ago on February 24 by Russia invaded Ukraine triggering.
Violence in this frictions with a skilled <unk> displace millions and as these come them.
And its a regulation and in response, we have outline on March 22 are pretty supportive of conduct.
So manage our Russian related activities, including our full support to current and future sanctions whatever the consequences.
So would it be.
Going beyond the sanctions we have also announced sold decision to stop the flow of capital to new projects in Russia initiated a gradual suspension of RTG there, while ensuring the safety of our staff in doing so we are exercising our duty of vigilance in line with corporate systems.
Who have began to <unk> ratio 382, Russian oil and petroleum products, we stopped spot trading transactions linked to Oregon, all natural gas.
On March 20, <unk>, we announced that given the uncertainty created by the technological and financial sanctions on the ability to carry out of the Arctic LNG two project.
Currently under constructions and very appropriately playbook political tightening we've been forced to worsening conflict.
We have decided to no longer move crude reserve for this project. Since then on April 8th New channels, New sanctions has effectively been adopted by European authorities, notably prohibiting exports from European.
Union countries.
Goods and technologies for the use in the LNG.
And then G benefiting a Russian company.
This new prohibition constitute additional risks on the execution of the Arctic LNG two project and as a result.
We decided to record.
The accounts of the debt and as you see as of March 31, 2022, an improvement of $4 1 billion.
Concerning the debris Arctic LNG two.
Well activity related to Russia is essentially indeed in fact centered around LNG supply from Yamal, LNG, which you as deemed necessary.
And so until there is a chance for placebo sanction will continue to earn our contractual obligations and protect the company from potential significant liabilities.
For Russia, we also apply our principles of transparency on March 24, we communicated to you that 2021 reserves in cash related to a Russian businesses and today you probably noticed in our press release that we have at either special table related to reserves cash flows of arps.
Stream assets as well as the capital employed in Russia.
You met your own in terms of volume, but slipped presents indeed with only a very limited part of the generation of <unk>.
Our revenues and cash flows in the first quarter the reshape CMS it accounted for 300 million or about two 5% of our cash flow mainly from the amount of LNG as if there was no dividend from Nevada <unk> and.
And $1 billion.
But 10% or net operating income capital employed is now less than $10 billion. After the impairments out of more 140 billion from the company.
The consequences of Roche as actions are going beyond the oil aviation related businesses and will have a significant impact on the global economy potentially more serious but the COVID-19 pandemic and related shutdowns. The immediate impact of course has been a significant disruptions to energy markets.
But pushed oil prices above $100 per Boe in gas prices in Europe , and Asia to more than $30 per million Btu.
Oil prices could remain particularly additional production capacity from OPEC all U S. Unconventional failed to compensate for the potential loss of $2 3 million barrels of oil per day of Russian crude traditions, plus a drop in our refining capacities from Russia for petroleum products.
Gas prices are likely to remain volatile as Europe speaks to rebuild inventory and reducing dependence on Russian gas, which puts Europe into competition for revenge for LNG.
But the most.
The most important part is also a need for Europe to Diversifies energy supply, which will be a massive efforts over many years and this will mean permanently.
The global supply chain for <unk>, and even for more gas more for gas.
It also creates new opportunities for <unk> <unk> natural gas business is as well as for LNG business and our transition to electricity and renewables.
To respond to the new situation during this quarter, so telling us is mobilizing for capacities and leverage its integrated midstream LNG business to saturate or all or European regas capacities.
With a record $4 7 million tons of spot LNG purchases.
In addition, we have we are mobilizing additional investments to support short term gas production in the North Sea assets.
Two rigs being mobilized in Denmark, where we see the world well stimulation I'll remind you of our TRP development start up as planned by mid 'twenty. Three we are also the bottleneck of cooling asset for by 10%. We are drilling in a few words on lateral win and we are taking actions to boost the production of.
Windows West of Shetlands by 10% by lowering pressures in some pipelines.
And of course, more we are supporting actions launched by a casino in Norway.
It's important however to reorganize that oil and gas prices started to move in the second half of last year before the invasion of few claim so post COVID-19 rebound and energy demand made it clear that supply demand balance was already tight even with China, partially locked down and then inventories.
We have years of under investments in new supply of oil and gas production and storage helped to create the situation and there is no quick fix.
Fix for it.
Industry needs to invest more but I'm also convinced that our industry will avoid triggering the owner with cost inflation.
But mark the last commodity supersonic cycle as we will keep this lesson in mind.
Total energy, we continue to invest with discipline, we just acquired deep deep offshore oil production in Brazil, we signed yesterday, the adapt and <unk>.
Shipyard contract and production will flow to the ELD today today in our in our accounts and I remember we acquired them in the last December on a very reasonable price deck of assumptions and we have made from rising oil discoveries in surinam inevitably out plus of course, we are.
Our moving forward both partners North America to fill the expense our LNG business.
He is a commodity and a commodity markets tend to move cyclically in and out of band <unk>.
Our combined by periods of <unk> and <unk>.
So just given geopolitical political turmoil and market volatility illustrates the challenge that we describe as.
Energy triangle, most as we seek to balance security of supply, we have affordability to the customer and impact on climate climate is an imperative, but other than facing any one of these three factors typically comes at the expense of the two of us.
Case oil and gas will continue to be a significant source of cash for the company to continue to fund our growth and low carbon energy, which we will provide to our customers. So that they have access.
Access to cleaner more reliable and affordable energy.
At this point in the commodity cycle oil and gas prices are flowing into the company generating strong results and cash flows which is a completely via a solo situation from just two years ago in the first quarter, we generated free cash flow after investments dividends and buyback of.
$5 8 billion and we were able to reduce our net debt. So that the gearing fell to 12, 5% Chunkier will come back onto the results in detail.
Given the strong cash flow generations.
A strong balance sheet the board reviews of cash flow cash allocation principles and clearly he affirmed its willingness to willingness to give priority to accelerate the company's transformation through console cycle opportunities. It is however in the matter of patients.
Our board confirms a 5% increase in the first interim 22 dividend to six nine euro per share.
It's authorized the company to buyback up to free billions of its shares in the first art saw an increase of 1 billion compared to the guidance for his first starts which was given in last February 2 billion will be bought back in the second quarter twice more than the first quarter.
We will maintain capital discipline as we look for opportunities to profitably grow the company mainly of course in LNG and renewables and power and we made on the same time move conscious that he can lead to divest some nonstrategic oil <unk> February February board environment, particularly for <unk>.
Sure.
But as <unk> carbon intensity to further rebalance our energy mix.
In particular, we will put for sale of 10% interest in the <unk> licenses of SPD <unk> onshore, Nigeria as the directions by local communities.
Source of great concern not only for the operator, but also for us as non operator.
We'll keep although the onshore gas licenses of STC onshore, Nigeria as they are critical to FID and LNG expansion.
Pending our integrated LNG activities, along with New awards in the equities business is central to our strategy and we plan to play an important towards in Europe plan to diversify its energy supply.
Way promotion guests, we have announced the expansion of our partnership with <unk> in North America.
First we launched this last month's a feed of Cameroon, LNG extension I think it represents a $6 5 million tons of additional capacity and so again, we extend our partnership to a new potential project in Mexico called desktop Pacificorp and third we will develop together with Sempra some onshore.
New awards and offshore wind in California.
<unk> investing around about 25% of capex to develop renewable electricity and similar amount to grow LNG.
What we call the new molecules both are critical to the energy transition.
In these uncertain times, we remain confident by disciplined investments to support our multi energy strategy will create long term shareholder value in.
In 2022, this might be close to $15 billion in size of previous guidance of 14 to 15.
Last word before to give the floor to drop yeah about the preparation of our annual shareholders' meeting on May 25th you probably noticed that we had a constructive dialogue with some shareholders and that's after all sensitivity sustainability and climate Progressive 22 issued on March 24th in line with <unk>.
In support of transparency, we took some new commitment to extend the scope of our reporting to enable investors to fully assess the company's energy transportation transition synergy strategy.
In particular, all this report will be published each year and stability to submit it to a yearly advisory board.
Ford has decided not to accept a resolution submitted by <unk> as it contravenes the French legal rules. So it seems the prerogative of the company's capital governance bodies.
<unk> is in charge of the strategy.
The AGM, but invited.
Both supporting the proposed resolution to express their views are rough who were available or written question, which will be addressed as a matter of priority at our next annual shareholder meeting we are definitely open to a transparent and constructive dialogue with all.
Shareholders.
Now I will turn it over to Jean Pierre for a review of the results and I will come back to join for the Q&A.
Thank you Patrick.
Reported net.
Net income for the first quarter 2002 was $4 9 billion.
Which takes into account the $4 1 billion impairment related to our Russian exposure.
Adjusted net income was $9 billion for this quarter the highest quarterly results in history of the company.
32% from the previous quarter, mainly due to the 24% increase.
Realized oil price as well as an 8% increase.
Realized gas prices and strong results from our midstream and downstream activities.
Adjusted earnings per share was $2 four.
The first quarter.
<unk> increased from the fourth quarter.
Adjusted cash flow was $12 million.
23% from the previous quarter ahead of expectations.
Explain to you how we allocate these strong cash flows.
Now through the results by segments.
Integrated gas when you bought and power segments reported adjusted net income of more than 3 billion.
First quarter.
11% from the previous quarter.
Three fold increase.
Yes.
Thanks to its ability to capture higher energy prices and labor rates strong performance from gas.
And electricity trading activities.
Operating cash flows before working capital changes was $2 6 billion.
6% from the previous quarter and $2 four times higher than the first quarter last year.
Cash flow from operations was <unk> 15 million, reflecting the increase in working cap.
Two the seasonality seasonality and to the price effect on the receivables of our guests and power supply business.
LNG sales were $13 3 million.
First quarter.
15% from the previous quarter.
And more than 50%.
Year ago.
And then he says from our equity projection were stable at $4 4 million.
So the main driver was record level of third party volumes sold on the spot market.
Europe as Patrick mentioned.
Our average price on energy.
First quarter remained strong.
At 13 six millimeter.
And we anticipate that it will be <unk> 14 is there a community in the second quarter.
Our ability to execute and deliver along the gas value chain, including our midstream energy trading activities has continued to outperform expectations.
<unk> increased cost renewable power generation to 10, seven gigawatts at the end of the first quarter.
$400 million whats from the previous quarter. Thanks in part to startups in India.
Cause power generation capacity under development increased to nearly 25 gigawatts, mainly due to be awards acquisition for offshore wind farms, including gigawatt of the cost of New York, and New Delhi, and <unk> of the cost plus contracts.
Net net electricity generation grew to seven six terawatt hour in the first quarter a 60.
61, 61% year on year, Thanks to higher TV panel <unk> power plants in a strong market environment as well as continued growth in electricity generation from renewable sources.
EBITDA from the honeymoon in HST business.
One is <unk>.
70.
$5 million during the first quarter in the context of power price volatility and the mechanism of setting the regulated electricity sales the recent drops.
The E&P segment reported adjusted net operating income of 5 billion.
42% from the previous quarter and two five times higher than the same quarter of last year comparable decrease in oil and gas prices demonstrating strongly rates to be environments.
Operating cash flow before working capital changes was $7 3 billion in the first quarter 'twenty.
28% from the previous quarter and nearly double the <unk>.
Same quarter last year, reflecting the higher commodity price environments.
Operationally, the E&P segments oil and gas production grew by 3% compared to the previous quarter and was stable compared to the euro.
And what types of projects, mainly in Angola, and Brazil, plus an increase in Opex prediction could offset the natural decline the price effect and although negative impacts, including the 25000 barrels per day equivalent decreased in Nigeria security concerns about SBC, which we're considering.
Divestments as Patrick explained.
Looking ahead, including the startup of everyone in our entry in asset Cynthia we expect production in Brazil to grow by 30000 very slightly in the second quarter and then by 60000 barrels per day in the fourth quarter.
Our downstream activities generated $1 4 billion of adjusted net operating income in the first quarter.
55% from the previous quarter and $2 six times higher than the same quarter a year ago.
Operating cash flow before working cap <unk> was $1 9 billion up 22% from the previous quarter and more than two times higher than year ago.
The strong downstream performance was mainly due to higher distillate margins in Europe in the context of reduced import operation between our products as well as outperformance of around $400 million compared to startup results in the quarter by our crude and products.
Trading activities.
Refinery throughput increased to $1 1 million barrels per day in the <unk>.
First quarter, reflecting demand recovery, particularly in the U S and in Europe , and the readout of the distillation unit at the normal refinery.
Petrochemical project trends volumes were stable.
Petroleum product sales were 1.4 million barrels per day equivalent in the first quarter stable compared to a year ago as the demand recovery. In addition was offset by lower sales in Asia.
Look balance.
At the company level operating cash flows before working cap Henry's was 11 6 billion in the first quarter.
This was the working capital build of $3 5 billion in the first quarter.
Mainly due to price effect on inventories and increase in inventories level to ensure the security of supply for our refineries and the seasonality of the gas and electricity business.
This was partially offset by value zero point $9 billion of margin calls and $1 9 billion.
Precision will be able station, including an increase in tax payables.
Net investments were $2 9 billion in the first quarter increased $900 million thereafter renewable electricity in line with the 'twenty two targets of 25% of our Capex for the full year.
We're maintaining capital discipline and full year Capex may trend towards 15 billion dollar still.
Still in signs of previous guidance of 14 to 15.
As Patrick mentioned, including the mobilization of additional investments to support short term gas prices get predictions in velocity and additional opportunities that may rise in line with our strategy of transformation.
We reduced net debt by $3 7 billion.
With our gearing ratio to 12, 5% at the end of the first quarter and we bought back $1 billion.
Sales during the quarter.
We reaffirmed the company's priority in terms of cash flow allocation in the context of higher oil and gas prices.
Vesting and profitable project to implement a strategy to transform <unk> into a sustainable energy company linking dealing in growth two structural cash flow growth.
Maintaining a strong balance sheet and our long term debt rating with a minimum level by dominantly anchoring gearing below 20% and allocating a share of the surplus cash flow from high hydrocarbon prices to share buybacks.
That concludes my remarks, and so we're ready to begin the Q&A.
Thank you.
Ladies and gentlemen, we will now begin the question and answer session.
Linda if you wish to ask a question. Please press star one.
Yes.
Wait for your name to be.
Kind of mute and Neal <unk> will ask some questions.
I wish to cancel your request please press <unk>.
Once again.
Great.
You'll ask a question.
On the first question comes from the line of Ethan.
From Nevada.
Please go ahead.
Thank you very much good morning, and congratulations on these exceptional results I have two questions. Please firstly.
The actual results.
Finding and chemicals.
Benefited from rather low adjusted tax rate this quarter.
Right.
With no with last year was this a one off and do you expect it to move back up again over the rest of the year.
And then secondly.
The balance sheet deleveraging of Vishay continues and arguably at the top of the cycle. This is quite normal to enable you to then.
Sunday eventual downturn.
As you say this Patrick prices may well.
Remain elevated for a bit longer.
Do you see the rapid deleveraging is creating.
Options for you for large scale M&A, particularly in new energies and low carbon thank you.
So we take the first question regarding the tax rates are globally that will deliver the compatibility from a lower tax rate due to the higher contribution of LNG and I mentioned to you the performance of the trading in the spot.
Felicia.
The trading benefits from a lower tax rates than the traditional active surveys.
<unk>.
No one off on the refining and petrochemicals.
Part of the business.
Considering your second question.
I mean.
The priority as we said I think we have been very active as a board I think everything I said it.
We consider that this might be an opportunity to accelerate that transition.
By accessing to some constant contact second caller.
Businesses.
I said in my piece you have to be patient.
No.
No I think we have demonstrated in the last six seven years that we were able to to capture these type of opportunities you.
Do you see if we move which will be primarily.
In either the LNG fields, and all in electricity and renewables.
Will be large scale I'm not a big fan of very large scale M&A I think you can.
You can also the motto is more but.
Integration is important and I think what we have done in the last seven years, we've had say a $10 billion like we've done on Maersk oil.
On Mozambique, and the Anadarko assets.
Well, we are well done so we will see again there is nothing specific in our mind to be clear.
Just from the board to use part of this.
<unk> cash flows to accelerate our strategy in line with what we said before but again.
As you know in that field of renewables in particular.
As I said, often there is a big bug also patients who will be our vessels to in order to make some great value and it starts a matter of volume for us to hold value.
<unk> seen that we have announced.
Yeah.
First we signed here in the U S with core solar.
We'll be more to come in the coming months.
The patients very much thank.
Thank you.
Thank you next question comes from the line of Christian <unk> from Jpmorgan. Please go ahead.
Hi, good morning, Thanks for taking my questions.
Two questions. Please first.
Regarding the exposure to Russia, and the impact of your industrial Schatz Chief strategy.
Sorry, maybe say sensible in a worst case scenario, where you have to travel together.
Could you frame the impact just think just qualitatively.
What are your energy business.
It would be the second and said.
No transition in light of this bank.
Very important cash machine as well as an enabler.
More renewables since for example would you need to raise more investments elsewhere.
The second question.
We really like the way you framed strategy triangle of access declined that security Patrick.
It's interesting you can extreme oil and gas investment is a key you Nathan.
The other two completion became too in our energy study, but it does seem these three variables are different weightings, depending on the stakeholders involved.
Assuming there is a super cycle. It takes hold in the Teekay should we expect you to raise capex in oil and we want to take advantage and underwrite obviously, the diversification across energy and the other parts of your business. Thank you.
Okay. The first one.
Let me clear.
Russia exposure to the LNG in fact in our portfolio, it's Yamal LNG.
Full point Arctic LNG, two as we said.
It will be difficult to believe that it can be built with the sanctions and.
And we do not we will not provide more capital to these projects. So <unk> is in fact, we have 20% of Yamal LNG, which represent around four 5 million tons of LNG in our portfolio can we find other opportunities to replace these volumes I think the answer is quite clear yes.
We have already in our portfolio some assets to be developed.
We just accelerated in golf ball knows Cameron LNG, we have PNG, we have Mozambique.
We'll be patient, we'll have maybe in two weeks some of the news to expand you all we will replace and ensures a goal for LNG in our portfolio. So I don't expect to die restaurant disruption novel growth profiling LNG, even if we add to fully exit Russia, which is not.
Today, <unk>, which is a possible scenario.
The impact on all yes.
I would say on the volume, but the impact will come fundamentally more on the gas ratio as we will lose.
We will lose some move I think gas production, but as you know, it's not a lot of value and so I think you said that it starts with product.
When we speak about a transition strategy is Fungibility bay, but fundamentally based on LNG more than on domestic gas.
We've been very clear in all in our strategy.
Energy triangles.
I think let's be clear.
It's a triangle in the I think a lot of European political leaders rediscover. It. The climate is fundamental we know that it's a question of I would say.
Survival for the planet. According to the S&P. So there is no way to forget this one and we are very clear. So it will not change fundamentally is not because suddenly we have a surge of oil and gas prices as we changed our strategy. The strategy and this is fundamentally linked to long term.
RG market's evolution, which is that if you want to decarbonize electricity fundamentals as well as new molecules I didn't say that.
<unk> enforce all of us as well that on the next decade.
<unk> thousand 2000, 2013, we never we have announced that we will continue to.
We have a sort of stable oil production with to make it stable, even though as you know we have a decline of 30 to 45, 4% a year you need to invest so and we did not we announced to invest in oil Luke.
We have done in Brazil.
And by the way, we will benefit immediately from 'twenty to form this increase of price of oil in Brazil. We are starting the one we include in our portfolio of CPI and adapt.
It will represent in the fourth quarter, a 60000 barrel per day of additional oil and with the fiscal terms of Brazil. It will be beneficial to the company. We have also launched the Uganda project. So.
And we are looking as you know as well we have signed a deal in Iraq last year, which is financed with this.
Gas and the New award and so.
We will continue to look for all opportunities.
Goes to maintain again on 10 years of decline of three 4% do we need to find ideas. We are I am very pleased the CEO of a company, but our exploration teams.
Going back on the roadmap of success.
With Suriname and no Internet media <unk> do we need to it's a <unk> discovery I'd say by advising with those you know, it's only one well I've seen incredible numbers of newspapers, we need to really be operator, we've decided to accelerate the appraisal well August September into test.
And then we will be able to communicate larger, but if we are able to generate by ourselves or with all these color is this year.
It's part of the strategy and we will develop them and it's in line with what we announced so.
All Capex increase is linked to it.
No. The answer is no, but again linked to opportunities we might require.
Just to be clear Patrick anti cancer rates on Capex beyond what your plans I just want to make sure I understand it's essentially part of the budget.
So raise your capex represented 50% of the Capex.
If I remember correctly and I think it's the right measure because you know there is one point on which we need to be Super vigilant and there will be a dividend is a risk of inflation.
I don't want to enter into the mistakes, we have done previously to the cycles, where inflation cost wise because any of ours might be profitable will begin to drill anything so let's focus on short cycle projects and let's continue to focus on our strategy for oil which is accessing.
Two low cost barrels and.
We have been at our opportunities and these opportunities are there.
But at the same time as I said in my speech. It's also an opportunity for us to clean the portfolio oil portfolio with the remaining iqos barrels and I would say I am meeting new borrowers that we have in mature fields in the portfolio.
When you ask them to cycle, you have to be counter cyclical in both ways.
When the prices are in Bayou winter prices go.
Thank you Sir.
Thank you next question comes from the line of small claims from Bernstein. Please go ahead.
Thank you very much everyone just two as well please firstly just on LNG again.
So I think if I Cameron LNG, obviously, we know it's one of the cheapest built.
Our plants in the last decade, so youre going into feed youre going to engage with EPC contractors, there's going to be a scramble for LNG.
Spoke just about inflation in the last cycle.
Is there a rough sort of unit Capex number youre thinking about here for this project, but also also the feedstock assumptions clearly Henry hub a lot higher than has been over the last five or six years. So.
Any description you could talk about would actually be interesting and then.
Secondly.
We're waiting for pizza in Ukraine, but it feels like the ceasefire in Yemen is actually holding up here.
No you've protected the plant pretty well in the last seven years during that particular war, but is there a probability you could place on a scenario where that plant Yemen LNG starts up in the next 12 to 24 months. Thank you.
Thank you Oswald for the second question I forget it in my speech because they know we have belonged to wait for a ceasefire in the amendment.
We are not part of the total with political discussions in difficult discussions with obviously the plant is preserved and let's be clear I remember a reminder, 7 million tons plant.
According to assume Shiloh assumptions.
Uh huh.
Page six months to restart the plant.
<unk> two other plants was six months, so the 7 million tons might be available quite quickly if beef again, but it's conditional to the fiber is one of the auction by the weeks when we lost it I remind you that the cash.
Cash flow per year of humans for total energy was around 1 billion. When we lost it in 2015 and so it was very much CIO or an it could replace easily part of the cash flows for more funding also.
I think one of the advantage, we have a very large portfolio of up and downs, but let's see.
Cameron LNG cost advantaged fundamentally yes, it's an interesting projects in this because it's a brownfield projects no. There is no logistics at all no J P. No additional.
Storage tanks at so we have everything is very it's a matter of building.
Between.
I would say, yes of course today, we are more on LNG in the U S are more I would say projects. So we may have some inflation, but fundamentally the fundamentals are all about.
Our moon.
And.
And we also by the way when the bottlenecks.
<unk>. So we have an additional advantage in terms of.
Profitability. So this is a very high.
Good very good profitable projects in terms of your second question is quite interesting and in fact, it's back to integration for me and you know we have this production in the Barnett shale and I'm happy to have this production in Barnett shale oil shale gas because it's a way to cover the bulk of the guests that we consume in the LNG plants if any.
Is it the same molecules, but economic at work and obviously I think.
I will review has been convinced that this integration strategy. So.
It might be maybe not today, because the price is high but on the medium term I would say that the strategy, whereas the more we develop in LNG in the U S. More will produce we'd have to find.
Excess to acid gas in the gas shale gas in the U S will be part of the strategy in order to economically integrate.
And in your chain.
So it's the answer to your question I don't give you the assumption that just gives you a way to cope with this I would say volatility of the gas price in the U S.
Very clear. Thank you. Thank you.
Thank you next question comes from the line of.
From Goldman Sachs. Please go ahead.
Great. Thank you and really congratulations I wanted to ask two questions on your view on future returns.
In terms of the renewable investment because we're seeing strong conflicting forces on one side tremendous cost inflation in some cases up to 30%, but on the other side, we are seeing higher power prices and also much higher volatility Ken I was wondering compared to your view one year ago do you see.
Higher or lower return investment opportunities in that space and has this changed your view of what's the right balance between Ppas and merchant power and then staying on low carbon hydrogen is really at the forefront of Repower EU major upgrade to 2030 target huge support but I was wondering.
<unk> East is really coming through.
And more attractive.
And do you see large scale green hydrogen development in Europe actually showing improved profitability can support for the coming years. Thank you.
So first question I think it's an excellent question I think youre doing the March 24th presentation. We told you, but yes, we have the view that the price.
Lower prices.
Our growing on the I would say IR trends securely because of intermittency because of storage because of all the system to ensure firm forward is more costly and total new question of cost inflation of renewables and this is why we have taken the decision that.
I don't know which way it is.
I would say RFID, but we want to keep 30% renewable assets open to the market to ensure service.
The volatility or balance sheet can support it I think it makes a difference with others and by the way also it's a win win and potentially the profitability of these assets on the long term.
So for me, it's clear and this is I would say compared to what we said a few years ago, where we had entering in that field with the idea that we need to secure no. We are more we are we have a better understanding of course, we see some integration along the value chain.
Renewable production Minion, then it's a matter of if you want to make value on such a commodity you need to be able to store and to be able to trade and if you'd be able to to supply and like in all these commodities business. So yes. So today.
Sure.
It isn't give more for me.
It's not a bad news as inflation, because it will cool down a little some of the some.
Some players we're really.
In the tenders going to very very low project, we're not on all sides participating we have not been successful for example, northern tenders in the middle East except one.
But as.
As we are successful because for us.
Everybody was anticipating you know deflation thinks is a new technology, it's a world where you can put in your model you anticipate today you have inflation. So my view is that it will.
It's better it's coming down this business and so I'm optimistic about the policy is to have good returns and again.
We continue to sanction projects, we've as we seek to use more of an OE of 10%, including by the fact that we might consider keeping and not only selling down some assets when they are quite good.
And we have some some in mines.
Hydrogen in Europe , I would tell you green hydrogen my view is that.
I am not fully convinced that it is in Europe , we're tooled up for <unk>.
So green at Oriental attending the incentives are not so high.
Assam projects with limited scale.
We have one project that we will develop which we have doubled the size of around 150 megawatts, but small issue really want supervisor green nitrogen supplies done you need to invest at a very large scale.
Again be patient we will announce soon.
Project invest field at a large scale it will not be in Europe , because fundamentally we think that green hydrogen as a matter of cost of electricity and so we are looking to where we could locate very large scale.
We have a very low cost of electricity on the long term in order to engage into this business.
Thank you.
Thank you next question comes from the line of Judy.
Please please go ahead.
Thank you and good afternoon, two questions if I could.
Can you just focus.
The board in terms of the shabby purchase level.
How that changed.
Alright.
And just any thoughts around that.
Second half and then secondly on Russia, and then have them.
Is that right.
I'm not sure.
Hi.
<unk>.
Hi, Paul.
And then one final one if I could just comment on the diesel market just given how high base market.
That's moved up.
Right.
But first a share buyback.
So there is no surprise to you. It's no surprise, we you should just.
Just believe what we said you know we said that.
We will share.
Finally, the benefits from.
Hydrocarbons for Ics with our shareholders through buybacks.
It is clear that when you add.
Cash flow from operations of $11 6 billion.
It's much higher and you can compare to what we've done in the fourth quarter, which was $9 million.
So obviously, when we said the $2 billion buyback level for first off it was not done on an assumption of 11 six. So you know so you have 1 billion excite was not a mathematical exercise by evolve towards more of the IV and <unk>.
And just mark.
Cost calculation. It was nothing like that discussion, but 1 billion is 40% of additional $2 5 billion of cash flow comparisons.
Q4 cash flow, that's just too so I think.
Logic.
And we will continue to monitor that quarter after quarter at the board level.
And we will not make a big announcements I think it's also a matter to manage all the stakeholders on that metric.
And again, both at the same time, the board is consistent and reaffirm our strategy to accelerate if possible.
The strategy of transition of the company as a priority.
On the gradual suspension.
I think something is wrong at what sometimes on Russia, I never think we never we never stated.
We will see in Russia, we just not stated that we will exit from Russia, which is a little different.
There are many reasons as we explained in all principal of concepts of March 'twenty two.
So we are looking step after step about what the sanction might be.
We are essentially all we tried to even.
And we think the conclusions on Arctic two but obviously in other assets you have your suspensions, but we know is that we have over activities. For example, we are in the Russia lubricant activity, it's not a big business, but we have a lack of additives. So we are suspending in not only spending position will be profitable.
PVC lubricants for example will be stopped by the end of this month, but another example in suspension and we assess that.
We are looking at.
On nobody take any EMR opposition is clear we have some con swaps with a novice con Fox these contracts represent huge amounts of money.
The volume of 20 LNG contract is huge.
And so we'd have to owners of contract as long as sanctions.
To do it and if it's not possible, we will take the actions as well so again.
You have to the board of directors of total energy as decided to face so Russia situation.
It is possible way and in particular to try to protect as much as we can the value of our assets for our shareholders interest.
And.
And so we are monitoring that.
But you can observe that we have new board as well.
No I would say is it.
Tissue to say, we need to meet these impairments were making improvements.
Got into what is happening there.
Clerks delivery is out to four years always it's clear it's huge I was looking at this morning, I think we are about where the dollar per ton I think so I've never seen such a.
Clark is clear, but sanctions on Russia for petroleum products, we obviously impact this market because Europe is relying on.
<unk> is always new import commercial diesel because so European refining system is more designed for gasoline and diesel.
And it was before so obviously the.
The market is anticipating such a ban.
For all activity and for refining business is of course, it's even more important but our refineries in Europe .
We're running it will be the case very soon you know we had unfortunately.
Those were stopped but now it's coming back on stream after one point.
Five yield.
Voluntary stoppage each with also oral refineries will will be around.
At full capacity for the second quarter.
So that's positive for the company.
Thank you next question comes from the line of Christopher.
From Bank of America. Please go ahead.
Thank you very much.
Two quick questions from me as well Patrick.
Can you go a little bit more into detail and tell us what the missing parts on that.
Underlying Arctic two and your assessment of how long it would take to source. These pumps circumventing sanctions that are now encouraged.
And the second question is a bit of a wider question.
You use 70, Brent and $20 for your gas price assumption when you gave us a 2022 cash flow outlook earlier this year.
And it looks like the $20 per btu at least it looks like that to me has now become more of a floor than anything else, whereas at the time, you said that might be a little bullish here relative to 70 brands can you give us.
A little summary of your assessment following your introductory remarks around the price of energy Securities, particularly gas security that Europe . You think we will have to pay in order to redirect volumes.
For the coming years as contracts with Gazprom expire. Thank you.
On Arctic LNG two situations. Following one in fact, there is a list of LNG technologies critical 11 months, which has been put on the list.
I think.
Thanks, Nathan over contractors are looking for always list to identify which particular elements might miss.
These sanctions will be in.
In place from May 27.
In the meantime, I think novatel.
<unk> is mobilizing contractors in order to be able to.
Again as much as equipment as they can.
And transferring the teams <unk> began in order to achieve I would say.
GBS one as possible.
We'll see.
What it is that if I can do that I think it's a question more for <unk> and for the contractors, which are involved in these.
And this activity in particular significant energy and.
Let's see.
On all sides, we have decided to take a I would say.
<unk> approach in all accounts and to empower.
The value of Arctic two.
On the economic assumptions I think.
I'm not fully convinced that $2000 per million Btu, we remain neubecker vis 'twenty the loss because of the.
The question of competition between Europe and other markets.
I have noticed in particular in this first quarter, but.
But the demand for LNG from China has diminished quite a lot around 10%, but more than 10% and probably remains good with high prices.
I think on the LNG business, we must be careful because the ICU quite a big risk of demand destruction in particular on the Asian.
Hard to know where the demand is coming from fundamentally.
There was an exceptional situation.
I would not take 20.
So for the long term economic macro assumptions, we are more around eight to $10 per million btu, but maybe up to cautious for this year, it's quite clear that yes.
Yes, there's a good chance.
Mike and the rest of the year by around $20.
If we are in particular, if Russia begins to stop them from this side.
Two to.
Provide gas pipeline, but it means that in order to be fair.
Yes, Suraj for next winter LNG will continue to flow to Europe . So LNG prices will probably is competing against with over parts of the world and we'll see and it's a good test for me what will happen. This summer because remember last year, which was during summer time, but the Asian gas went through the roof.
Because of the strong demand for climate position and I'd also linked to the economic recovery. So I don't know what it is exactly the situation today in China.
Some certainties around these lockdowns linked to Covid, we are little surprised I think today all in all.
We're subside, but we do see China is coming back into the market because they need just like last year of course, the price will not go down.
Remain quite high.
The longer term.
You have to be clear.
Yet the careful because.
I guess of LNG is not only the spring demand in Asia, but might be really.
I would say, Mike slowdown will slow down in my view the use of gas in Europe .
And because it could accelerate the manufacturing industry in Europe , which was benefiting somewhat from the Russian gas, which was a low cost gas will not be able to resist if we provide them. A 20 dollar per million Btu is a possible. So that means that I think but some industries will begin to access.
<unk> to electrify.
Supply in order to try to get a cheaper energy with long term contracts. So I think I don't see if we could keep.
$2000 for the long term because the demand will.
Customers will not take these type of prices so its why.
<unk> outlook for projects.
Use more where we are.
Given internal disruption to use eight.
But again by the way it is enough to.
<unk>.
So we launched two I would say to.
Some north sea gas.
<unk> projects, which had five dollar we're steadfast stranded asset <unk>.
Our profitability we are a good example in our portfolio about the.
Nine.
Broader guest gap, which is a one tcf gas with west stranded and which today is coming is revised so I have asked the teams to look to these projects that we could make it particularly stream so, but we don't need $20 off of these type of opportunities. So.
That's my answer to your nice question. Please.
Very clear Patrick I think eight to 10 as already as you say enough and would simply be a very important message to recap.
Gas prices to rent equivalent levels.
Great.
Would you agree advisor way now in the commercial part of the LNG sales, we are given the structure to LNG.
<unk> not to try to go back to the famous 60%, but to be resumed the award because for me today the priority is to maintain.
And it's an opportunity for us to sign long term contracts, but of course offering long term long term acceptable prices affordable prices it could add by the way to to launch additional LNG projects with these type of contracts.
Okay, great. Thank you.
Thank you next question comes from the line of Beth.
Joseph Please go ahead.
Yes Hello.
Thank you for taking my question and congratulation again.
This strong set of results as well.
Transparency on the ratio contribution.
A bit more <unk> punches potential messy find and share with us your initial thoughts on <unk> on a potential fast track development.
First question and on second question on Russia, do you expect any <unk> from <unk> in 2022.
Oh, <unk> swishing that you already answered and do you believe.
Stop reading newspapers you know.
Just listen to me.
I think you see in your longest totally in the oil and gas industry. One will this corrington video and I don't think it exists, but no <unk>, it's <unk> <unk> as I say, it's a promazine discovery legends will the appraisal well.
Let's test for two hours and then.
Who will come and you know when I will if really we had such levels, which I don't think we'll we'll be happy and you will be happy shoulders, So, but again I think by the way we speak always more referring to the media provings, rather than just or license, but again I don't want to dump dump. It in front of me this way.
It's a <unk> it's enough.
Sure dividend Noah take as as approved I think general Assembly shoulders is approved with dividend last week, we are shareholders. So a as dividends.
Will be available right on the one in the whole board somewhere.
Yes on the.
Transfer them to Excel energy, that's another question, which depends not only on those but renewal or the garter contract sanctions from Russia, and so like the European sanctions, which are moving targets.
Sanctions are also moving once so.
We will not by the way are naturally it's not so big as quickly as enticing $250 million total energies. So again this is not what we would change.
The vitriol analogies, while we are very concerned, but I don't know if we would have access with where we will keep.
The whole ball somewhere.
Counting Russia.
I think maybe I can.
Squeeze one more on on.
On your impairment in Russia.
Disclose a book value.
<unk> two was $2.5 billion can you help me we can sign.
<unk> $4.1 billion in payments you too <unk>.
No you have the <unk> information, which was transferred to use.
We said, notably and I think if you look through the slides, which was distributed in March 24th you could find the answer.
Got it.
Thank you.
Question.
C T.
Hi, Patrick jump here, a couple of questions just on sort of state to.
Market for negotiation so.
You've already touched on the U S. LNG, just intrigued to know with us.
Economics of changing.
It used to be sort of Henry how plus a fee.
Clearly LNG develop a suicide opportunities you do out here.
So I'm just wondering if those negotiations getting tougher.
And then secondly could you sort of explain how the the.
The market for acquisitions in renewables will cause him and you.
On the call so we'll deal.
I'm just trying to understand that that's a competitive auction until the how competitive things options are.
Second question would be clear of course, Lola was a deal which was a direct negotiation.
They really are having this very stronger.
Do all of this market as I say too old to stop looking and stop spending your spam or losing your thumb competitive.
Opportunities because we have always in front of you.
Financial versus which is of your speeds will not advil towards the same views on this type of assets.
They have more neighborhood negative return so we <unk>, we are not in by itself. So the only way for us to continue to build a portfolio but of course, so large that mixed announced examples.
The foods ones.
Yeah.
I don't know, which opportunities you are you are thinking too.
As a matter of.
Our staging.
Sure.
No.
So.
Your question is a little mysterious for me, particularly.
So if you have maybe Sofia environment.
Yes.
On the contrary I would say all of the on the Cameron LNG. It start to accelerate I would say the decision process. We are all Chinese Japanese partners.
On this type of typical it's more of a newer kind of I don't know to which opportunity do we fill which might be impacted by this.
LNG economics changing.
I mean to the deals.
U S Gulf coast or Mexico.
So the basically Henry hub plus the fees are you still going out and taking Henry hub price risk.
It's linked to Henry hub.
Yes.
You could use your question the answer is yes.
Yes.
Okay. Thank you.
Thank you next question comes from Peter.
Please go ahead.
Hi, Thanks. The first question was just a clarification on the cash flow from Russia Q1 I guess relates to your mall can you confirm that that has been repatriated from Russia I. Appreciate it can change, but just to understand the current situation and then secondly, you talked about your willingness to explore counter.
Clinical opportunity to accelerate the transformation can you clarify would that be outside the 13 to 15 billion dollar net investment wage you've previously given to 2025 or would you stick with that range and try to make disposals alongside any large acquisitions you want to make.
On the first one is clear.
Thanks, Rob the figure.
Most of the cash we received this year is linked to <unk>.
Yes, its guests she's getting back to kind of unique.
We gave them.
Yes, so and yes, as we get the cash yeah.
By the way you know the world only was declared the second box of the board.
But the amount of cash system works.
Until now.
So the second question.
The range is very for 'twenty two.
14th 15th.
We said 14 15 billion. So the answer to your question is yes.
If we accelerate on one side, we might divest from the other side because again, we have yes, yes, sorry, yes.
Thank you.
Thank you next question comes from.
Your line of BS.
From RBC. Please go ahead.
Alright, thanks for the presentation.
I have two questions. Please the first one.
Cameron LNG and the Debottlenecking, there, but the existing trains.
Have an idea of what timeline.
Also making us.
Cameron.
Cameron LNG and the new train.
Mozambique, LNG, though maybe not you, but some of those off of your colleagues. We asked me. The question March 'twenty, four but lots of news, which is March 24 today. So.
Although they said.
Based on activity on the ground not from us, but from the government of Mozambique and survive through it because of security and then to bring back as a population.
In Pes to have a normal life, we saw the two conditions, we agreed with the Mozambique government.
<unk> got all of that will take at least 2022 and then what we plan on our side is to really.
You could go back there and as I said last time.
Are we sort of activities that Dave I will advise as to be able to visit.
<unk>, Palomar and mostly by the prior because at my security people told me not to grow our nuts and any of my people contractors too faced a difficult situation.
So I think it's a matter of as I said before there is good.
Wouldn't it be all good news on the run them as a security as much improved and there are less.
Much less I would say.
Attacked still.
Not yet fully recovered.
The government of Mozambique communicate keep it.
The objective is to recover the security arena.
Bye Bye Bye June results a year, but then when you want.
Don't want to be thoughtful activity.
Surrounded by a refugee camps.
The situations with the stabilized because piece is growing as well.
We've I would say the stabilization of the local population and economic activities.
On which we contributed by the way with others too but.
A number of positive signs for the <unk>.
Before going in some of my <unk>.
Senior officers Windsor and saw some reports, but it's a question of patience and then.
Once we really consider but the situation is really under control where the pieces back we'd be able to be mobilized and we know that it would take us more than six months to come back to.
I would say this.
Stabilized construction level.
So the opportunity is there the progress are well, but it does and it depends again on the actions.
The Mozambique government and its allies.
On the first question.
The question I was asking was for the 5% increase in the Debottlenecking for the first three trains at Cameron LNG.
What kind of margin.
They think it's technically it's linked to the building of the trains.
Is 25, I think 25%, 30%, making 25 for the first one sorry I didn't catch it.
Firstly, the firstly boots are making for the first 2025.
Each year, each train will cost.
Okay. Thank you very much.
Next question comes from the line of.
From UBS. Please go ahead.
Yes that one.
Okay.
One question I'm trading in a couple of them on stream. The first one I'm trading so very strong performance in the first quarter.
To see significant traction in the second quarter I was wondering to what extent you think can replicate the very strong performance in the first quarter of the first quarter in the second quarter in both.
Energy trading and the oxy trading.
And then secondly.
And you talked earlier about the risk of demand destruction for gas.
And it was interesting to hear your views on the risk for oil demand.
Hello.
I think that we see and what are you starting to see.
Weaker demand in your own network.
The network and then finally can you give us an update on the impact of the <unk>.
Discounts at the pump and what you would expect these to be extended thank you.
Yeah.
I think when we say the six six with all six of total even though but it means that of course, Australia is a weighting towards the do it regularly but they are motivated directly a possibility for that.
I would say on the or trading it was this quarter was as etc know more after the second quarter 2020 plan volatility and so again, it's more these type of additional nor what we dimension, let's say $500 million swap cash is linked for limited to specific situations of volatility of the market.
Sure.
When they are in the right so.
For the gas what they observe is that the obviously the second quarter, we neuro, but we have a strong reserves visual liabilities, there and I think it's a matter of so Paulo teams two sims, but our position in particular on the LNG you know and.
Gave us an advantage to be able to.
Two.
I would say.
Get some good strong results so let's see began.
Replicated I just want to also to mention that we are also benefiting from good and strong.
Electricity trading and it's also as a second quarter in the world. So I think the reality is that I would say performance of trading is generally linked to volatility of the market.
They lagged related of course, it's a mitel to other good analyses.
What was the market trends because it could give us you know so well.
But thats, where we observed.
On the on the demand destruction for I think all is a little different by the way.
<unk> networks today, no we have seen an impact because of COVID-19 still in the first quarter I'll remind you and remind you that you're going to Europe .
Covid measures in light in Asia today in China. So, we don't we cannot link or demand to oil price today, So I cannot but we don't know that we do not see that.
And I have seen I read some statistics on the month of April where there is no real recovery, but I cannot tell you that.
So it seems that we can come back to the levels of 2019.
We have a small place, but so we don't have service.
It does get in Europe , with the impact might be.
Tom.
When we remember that the Super cycle. It was more of an emerging countries.
Then the city governments as to subsidize and of course everything is expensive and so they begin to take actions in order to be more efficient and to my efficiency. So it's not exactly like guess that was my my remark was more of an LNG because LNG is competing with food. So we know it's a relative price of LNG to call when the LNG is a big.
<unk>.
I am afraid with some Asian countries will come back to Colo quite easily and which is not good for climates, but thats what will happen.
We have alternative is not so obvious.
Liquid and so you don't know because all industrial electricity or his first transportation. So we don't have much.
Impact on oil demand might come from the economic growth This war.
Unfortunately begins to really have some impact on some supply chain and then we begin then start a minute an expert micro explored whether I'm reading the papers for <unk> and some central bank they begin to speak about.
Even our growth which might be.
Either rule negative so you have a direct link between I would say our demand in the.
Macro economic environment.
This comes from Tom.
I think it's for me we.
We have taken some decisions on this one to be willing to eat to makes a variety rediscount because we think it's important and I think it's normal that we take care of our customers and.
So periods, where it's a matter of solidarity.
<unk> seen the except for the reserves.
And frankly, I prefer to discussion, which good intelligence.
Goldman French governments, which Clifford.
To act by taking actions directly with customers. We've done it for gas window did for gasoline brought out of a full tax season. They perfectly with this philosophy. So would be yes, we will take some initiatives.
For the summer where people are driving a lot.
There is a 90 around.
Discount on Motorways, but we need to elaborate on this one before to about to announce it.
So I think it's part of I would say.
Again to the good way to share part of appropriate directive of our customers.
Thank you.
Thank you next question comes from the line of Martijn rats from Morgan Stanley . Please go ahead.
Yeah. Thank you my questions have been answered just been very comprehensive thank you.
Thank you next question comes from the line of Jason.
Cowen. Please go ahead.
Hey, Thanks for taking my questions.
Two quick ones, because I agree with the Kaufmann quite comprehensive.
First on <unk>.
Brazil payments for Saturday and a top two.
Are there any payments left after whatever you disc.
<unk> disclosed for <unk>, because it looks at.
At least on our numbers a bit light.
I'm not sure if theres any additional payments coming for <unk> for the rest of the year beyond what was booked for <unk> and then secondly, I was wondering if you have any update.
On your views on when Qatar LNG.
Project when they can award.
Yes.
Those contracts.
It seems like this is about as good as an environment and won't get fully sanctioned the project. So so any update there would be helpful. Thanks.
Yeah. It would be helpful for me as well.
I will let us get a feel for it is communicating on that.
It's a competitive process, we are part of course of the parties.
Electric guitar for Ts.
<unk> is a process and we are partner with them. So.
So of course, we are.
Uh huh.
<unk> to be able to put to work.
To contribute to these projects.
On the first one youre pusher is a right question because we are.
That is true, but the bonus.
There is no now with I think linked to.
The oil price, but it's not.
It's not I would say.
I don't think it will it be paid immediately so on a yearly basis in some years. So that Mccann is on what can be described to you by our teams. If you want the details.
So today, yes, we have paid in fact.
Yesterday.
Sure.
Sure bonuses, which we are presenting something like $2 5 billion total I think has been paid.
The treasury of Sean has been lowered yesterday.
But such was he was willing to have much electrical towards moving to have too much money.
So all of that has been down because there was on the one side the bullish with the state and I would say the compensation to Petrobras, which was paid yesterday so.
Cash flows I think you added in the first quarter as a bonus to the stage and the compensation.
First the main part of the compensation to Petrobras was paid yesterday and then on this part the ASO earn out linked to the oil price, but we Chuck coming I think that before beginning of next year, because it's a yearly Mackenzie goodwill, which is triggering a $70 per barrel.
If I remember as a country.
So for this year.
Yes, I think.
Everything has been paid and when will enjoy to get some production go flowing 30000 Boe per day.
More or less as an average in second quarter of moving to 60, thousands a day at the end of the year additional production. If you took you mentioned one other dollar per borrower is.
Positive for investments in terms of profitability.
Great. Thanks.
So I understand there are no more questions.
So I would like to thank you all of you for attending this meeting and will be IP to IP to answer to your two questions. Obviously, we benefit from.
A very strong environment, but I'm really.
As chairman and CEO I am very pleased but.
The teams of total energy has been enabled in all the segments.
To capture to capture this upside.
It was good.
Two two point.
<unk> five <unk>.
At your consensus so congratulations of E&P teams.
<unk> trading arms perform again, very well and the result is even beating a record compared to the fourth quarter on refining and chemicals. They comeback from red to Green in Europe , and I think there is more to come with diesel crack and lower refining refinery running.
<unk> with Citi.
Third quarter will be it will be better than the first one and marketing services is stable.
Offering a liter of course from or the upstream chain because when margins are strong in our refining and price are so margins becomes to be squeezed on the marketing and services, but we have high quality assets.
So I think that.
Our second quarter should be more or less in the same view, the same or even a little better but what we've just done.
As you have noticed the board of show as board of total energy is fully committed to continue.
Continue to enhance the returns to shareholders as well.
To implement our growth strategy.
Formation of the company.
Thank you.
<unk>.
That does conclude our conference for today, Thank you for participating.
Okay.
[music].
Yes.
[music].
Yeah.
[music].
Yes.
[music].
Okay.
[music].
Yes.
[music].
Okay.
Okay.
[music].
<unk>.
[music].
Okay.
Yes.
Okay.
Sure.
Okay.
[music].
Yes.
[music].
Yes.
[music].
Okay.
[music].
Okay.
[music].
Sure.
[music].
Yes.
[music].
Sure.
Okay.
[music].
Yes.
Okay.
Yes.
[music].
Okay.
Okay.
Okay.
[music].
Okay.
Okay.
Okay.
Okay.
Yes.
Okay.
Yes.
Okay.
Sure.
Great.
Yes.
[music].
Yes.
Yes.
[music].
Yes.
Yes.
Sure.
Okay.
Okay.
Okay.
Yes.
Yes.
Sure.
Yes.
Okay.
Yes.
Okay.
Yes.
Okay.
Yes.
Yes.
[music].
Okay.
Yes.
[music].
Yes.
Yes.
[music].
Yes.
Okay.
Yes.
Yes.
Yes.
[music].
Sure.
Okay.
Thanks.
Yes.
Yes.
Okay.
Yes.
[music].
Yes.
Yes.
Okay.
Sure.
Sure.
[music].
Sure.
Okay.
Okay.
Yes.
Okay.
Okay.
Okay.
Okay.
Okay.
Okay.
[music].
Yes.
Okay.
Thank you.
Sure.
Okay.
[music].
Yes.
Yes.
Yes.
[music].
Yes.
Okay.
Yes.
[music].
Yes.
Sure.
Okay.
Yes.
[music].
Yes.
Yes.
[music].
Yes.
Yes.
[music].
Yes.
Yes.
[music].