Full Year 2023 TotalEnergies SE Earnings Call

Operator: Objectives presentation. We are today in London from the Tate Modern Art Museum. Thanks for coming today and I hope that you will enjoy the view of the city and St. Paul.

Objective presentation, we are today in London from the states more downhaul three ASEAN.

Speaker Change: Thanks for coming.

Speaker Change: Today, and I hope that you will enjoy the view on the city and in simple you can also follow us.

Operator: You can also follow us live on our website TotalEnergies.com. We will start today with a safety sequence with Bernard Pinatel, our President of Refining and Chemicals. And then we will have the presentation from Jean-Pierre and Patrick for around one hour. And then we'll move to the Q&A session, which should be finished around 11.30 or 11.45. You will be able to ask questions from the room, and there is also a dial-in number that people can use to call. But without further delay, I invite Bernard to come on stage to launch the meeting with the safety sequence. Bernard

Speaker Change: <unk> on our website.

Speaker Change: <unk> Dot com.

Speaker Change: We will start today with a safety sequence with peanut tail.

Speaker Change: Well, our president refining and chemicals.

Speaker Change: And then we will have the presentation from Yorkshire, and Patrick for Iran. One Oh well.

Then we'll move to the Q&A session, we should be.

Speaker Change: <unk> finished around events social events 45, you will be able to ask questions from the room and there is also the dial in number that people can use to call.

Speaker Change: But without further delay I invite bill now to come on stage two loans to imaging with the same sequence.

Bernard Pinatel: Last year we had to deplore two fatalities, as you know, and these two tragic events remind us that our first duty, of course, is to make sure that everyone returns home safe every day. One fatality occurred in France in a retail station where a contractor, Isidor, passed away when performing some exhibition work.

Bill: Thank you all know well good morning.

Bill: This is Joe with the deep draw <unk> as you know in these two tragic events reminders wet cough faster, which of course is to make sure that everyone returns home safe every day.

Bill: One facility or cutting fronting a retail station.

Bill: Tractor is adult passed away.

Bill: When performing some extended shouldn't work.

Bernard Pinatel: The safety moment I've chosen this morning is about the second fatality, the one which occurred at the Zeeland refinery in the Netherlands, not just to describe what happened but, most importantly, to share with you what we learned from this tragic event to improve our operations on February 4. A contractor passed away while he was performing a catalyst unloading operation inside the reactor. His name was Thorsten.

The safety moment I've chosen this morning is about the second facility.

Bill: The one which upheld which occurred in Brazil on the refiner in the Netherlands of course, not to describe dressed will describe what happened.

Bill: But most importantly to share with you what we learned from this tragic event to improve our operations.

Bill: On February <unk>.

Bill: The contractor faster way, while it was performing a catalyst and loading of duration.

Bill: Inside the reactor is they more stocks than.

Bernard Pinatel: He was 50 years old. Changing a catalyst is a very sensitive operation, as a catalyst is flammable in the presence of oxygen or air. So you must first inert the reactor with nitrogen before the intervention. The catalyst unloading operation is performed, as you see on the slide, by a team of three people, led by a supervisor. First, there is a diver who is the one entering the reactor, fully equipped, of course, including a lifeline to be pulled out in case of emergency. The second one is a second diver who is ready to dive in case of emergency.

Bill: It was 50 years old.

Bill: Changing a catalyst is a very sensitive operation as a catalyst semi bordering the presents of oxy Jennifer.

Bill: So you must first email jewelry at Jefferies nitrogen before intervention.

Bill: The catalyst and loading operation you spell from as you see on the slide by your team of <unk> led by a supervisor.

Bill: Firstly, there is a diverse who is the one entering into the reactor fully equipped of course, including we've a lifeline to be put out in case of emergency.

Bill: The second one is a chicken die they always ready today to diagnose case of emergency and there is also a controller who the money towards the level of nitrogen O'hare will end keeps constant contact by radio and by video and before entering into the rector of course, there is a video inspection to make sure that the situation is safe.

Bernard Pinatel: And there is also a controller who monitors the level of nitrogen in hair and keeps constant contact, by radio and by video. And before entering the reactor, of course, there is a video inspection to make sure that the situation is safe. At 11.15 on that day, the alarm was given by the personnel, and we learned that the diver was trapped by the collapse of some categories. Of course, the rescue team, reinforced by additional members, fully equipped, tried, in turn, to pull him out of the reactor, which, you may guess from the slide, is 30 meters high. When the body went out... the team found that the diver had passed out.

Bill: <unk>.

Bill: At 11 15 on that day.

Bill: Alarm was given.

Bill: By the casinos and we learned that the data was trumped.

Bill: By the collapse of some catalyst.

Bill: Of course, very secure steep very curious tourists cortina reinforced by insured members for a quick tried in town.

Bill: To put them out of the reactor, which you might guess from our side is 30 meter height.

Bill: When the body went out.

Bill: The team found that the diverse Mr. Li.

Bernard Pinatel: One share is clear. We couldn't keep operating this way, with a Human Entry into an Inert Atmosphere, even if it is the industry standard. So we immediately took three actions. Of course, we immediately stopped all similar operations worldwide. Secondly, with our contractors, HSE specialists, and technical experts, we reviewed alternative operating modes to avoid any human entry inside reactors for that kind of operation.

Speaker Change: One face clear we couldn't keep operating this way.

Speaker Change: We have a human entry into an inert atmosphere.

Speaker Change: Even if it sees industry standoff practice.

Speaker Change: So we immediately to free actions of course, we immediately stopped worldwide.

Speaker Change: All she meda operations in the company.

Speaker Change: Secondly, we have our contract does HSE specialist technical experts.

Speaker Change: We review of alternate chief operating modes to avoid any entry human entry insight react sales force kind of operation.

Bernard Pinatel: And eventually, we identified and selected Alternative Operating Modes, where you change the catalyst by water flooding. What does that mean? It means that you fill the reactor with water.

Speaker Change: And eventually we identified and selected an.

Speaker Change: An alternative operating modes.

Speaker Change: Where you would change your catalyst by water flooding what does that mean it means that you feel are.

Speaker Change: The react up with what they are.

Bernard Pinatel: And then you empty it together with a... Of course, this is more costly because you cannot recover the catalyst to recycle it, and you have to dispose of the waste water, but you will understand this is not really what it is. From February 2023, all replacements were performed without any injury.

Speaker Change: And then you empty together was a catalyst.

Speaker Change: Of course, which is more costly because you cannot recover would get there is to recycle it and.

Speaker Change: And you have to dispose of a wastewater, albeit you will understand this is about where you went to that stage.

Speaker Change: Yeah.

Speaker Change: From February 2020, free or replacement were performed without any injuries.

Bernard Pinatel: We carried out 21 replacements using water in 2023, and we will have another 14 in the first year of 2024. We also keep working on further improvements in terms of vessel modification because, you will understand, these vessels have to support the additional weight of water. And, of course, we are looking at the utilization of robots. And, naturally, we have shared these new operating modes with our partners.

Speaker Change: We carried out 21 replacement using water in 2023, and we will have another 14 or the first year of 'twenty 'twenty four.

Speaker Change: We also keep working on further improvements in terms of vessel modification, because you wouldn't understand that vis vis setup now to support the additional weight of water.

Speaker Change: And of course, we are looking at the utilization of the robots.

Speaker Change: And naturally with shell to this new operating modes with our P. S.

Bernard Pinatel: So let me now switch to the..., after the safety moment, on the overall company safety performance. At TotalEnergies, we keep repeating this message: safety is more than a priority, it's a value, it's a core value. Of course, safety is a matter of culture, it's a matter of leadership.

Speaker Change: So let me now switch to <unk>.

Speaker Change: F W safety moment to be overall in the company our safety performance.

Speaker Change: Total energy, we keep repeating this message safety is more than a priority. It's a value it's a core value.

Speaker Change: Of course safety is a met just concerns met of leadership. It's also a matter of permanent improvements.

Bernard Pinatel: It's also a matter of permanent improvement, and to track it, we measure several leading indicators that you see on the slide in terms of occupational safety and in terms of the prevention of technological risk. So on the left-hand side, in terms of occupational safety, you see that we track the total recordable injury rate and that this rate, at 0.63, has been reduced over the last five years consistently, and that represents a reduction of close to 30%.

Speaker Change: And we track it we measure of several leading indicators that you see on the slide.

Speaker Change: In terms of occupational safety and in terms of prevention of Victor Victoria equal risks.

Speaker Change: So on the left side in terms of Coca short safety.

Speaker Change: You'll see that we track the total recordable injury rates and that this rate at all point 60 free.

Speaker Change: Has it been reduced over the last five years consistently and that represents a reduction of close to 50%.

Bernard Pinatel: Having an injury rate well below one is not a given, believe me, notably when you see the industry trend since 2020. So we have been able to consolidate our position as a frontrunner on this indicator in our industry. How did we do it? Some key initiatives. I would like to highlight one, which is our ability to engage our contractors with our teams to promote shared safety values. We have done it notably for what we called a program of joint safety tools between Total Energy Management and contractor partners. This tour comes, of course, in addition to the daily visits we do with our local team on the field. In 2023, we recorded 10,000 such joint safety tools across.

Speaker Change: Having an injury rates well below when he's not to given it is me.

Speaker Change: Notably when you see the industry trend since 2020.

Speaker Change: So we have been able to consolidate our position as a front for now and just on Houston. He kept in our industry how did we do it.

Speaker Change: Some key initiatives I would like to highlight one.

Which which is our ability to engage our contract sales with all teams to permit to promote shale 60 venues.

We have done it with the brief for what three quarters, a program of drawing safety tools.

Speaker Change: Between total energy management and contract snaps.

Speaker Change: This drove coming of course in addition to the daily visits we do with our local team on the field.

Speaker Change: In 2020 free we recorded 10000.

Speaker Change: Such joined 60 tools across the company.

Bernard Pinatel: Regarding the prevention of major accidents and accident pollution on the right-hand side, we are also progressing. For the last five years, we have reduced the number of primary lawsuits of containment, as you can see on the slide, by 50%. And here again, we have been focusing on two main areas. First, this is the management of technical integrity through our maintenance inspection program, but also through the implementation of digital tools to anticipate and prevent potential equipment failure.

Speaker Change: Regarding the prevention of major accident, an excellent producer on the underwriting side. We are also progressing.

Speaker Change: Over the last five years, who have reduced the number of primary loss use of contingent rent you see on that site by 50%.

Speaker Change: And again, we have been focusing on two main areas.

Speaker Change: Of course first versus a management of a technical integrate T.

Speaker Change: Through our maintenance inspection program, but also through implementation of digital tools.

Speaker Change: To anticipate and prevent potential equipment failure.

Jean-Pierre: The second area of focus has been the implementation of what we call the Safe Operating Principle, the SOPs, where we constantly train our operators on the basic rules to comply with when they perform very standard operations. So, of course... To conclude, I just would like to say that we all know that safety is a daily battle. But that we are all committed to doing our best, to protect our people, the environment, and ourselves. And now, I hand over to Jean. Thank you, Bernard. So, good morning, everyone.

Speaker Change: The second area of focus has been.

Speaker Change: The implementation of what we call a safe operating principle based therapies.

Speaker Change: Where we constantly train our operate dose on the basic rules to comply with.

Speaker Change: When they perform very standout operations.

Speaker Change: So false.

Speaker Change: To conclude I, just would like to say that we all know that safety is a daily button.

Speaker Change: But we are all committed to do our best to protect our people and the environment and our seats.

Speaker Change: And now I hand over to drop yet.

Drop: Thank you Ben so good morning, everyone.

Jean-Pierre: This year is a special year for TotalEnergies because, in 2024, it is celebrating its 100th birthday. So the company was founded 100 years ago in Iraq. At that time, it was called Compagnie Francaise des Pétroles.

Speaker Change: <unk> is a special year for <unk>, because thats, adding yahoos E celebrity in the 2020 for each sweat and rigs euros.

Speaker Change: So the company was founded so when when the new deals are glued in Iraq at that time, the name was called painful safety pitfall.

Jean-Pierre: And since that time, over time, the company has diversified, has adapted itself to deal with the environment, deal with society, deal with the market. And it's, I think, with the same pioneer spirit that we used at that time in Iraq in oil exploration that we will build the energy system of the future. Indeed, over the last couple of years, we have engaged in a balanced energy transition strategy, anchored on two pillars, so oil and gas on one side, and mainly LNG, as you know, and on the other side, integrated power. On the oil and gas side business, TotalEnergies plans to responsibly grow its oil and gas production by, predominantly from LNG. Thanks to its rich, low-cost, low-emission portfolio in the LNG business. We will deliver our top three global energy integrated portfolios, with leading positions in re-gas in Europe and in U.S. exports, to develop a top-tier LNG pipeline. Patrick, we'll come back on that later.

Speaker Change: And since that time with real time, the companion as diversified as Adeptly details to deal with your remarks to deal with this was a G to deal with the markets and I think with the same.

Speaker Change: The Union of spirit that we use at the time in Iraq in own exploration that we will meet again energy system of the future.

Speaker Change: Indeed, although the last couple of years, we are engaged in.

Speaker Change: Balance energy transition strategy as you know and goes on to be dose, so oil and gas on one site and mainly LNG as you know and on the Google side integrated very well.

Speaker Change: On the island side business, but that email he plans to responsibly grow each island guests projection by 2% to 3% failure.

Speaker Change: Clearly I mean entity from LNG.

Speaker Change: Do we reach look us low emission portfolio.

Speaker Change: In the LNG business.

Speaker Change: The average after pre global as you integrate the portfolio, we have leading position in re gas in Europe in U S exports.

Speaker Change: To develop the top tier LNG pipeline and Patrick will come back on that later.

Jean-Pierre: In the integrated power business, the company is building a world-class cost-competitive portfolio, combining renewable energy, Solar, Offshore Wind, Offshore Wind, with Flexible Assets, CCGT, and Storage, to deliver clean firm power to our customers. And, as you know, with the objective to be positive net cash flow by 2028, with a raw HCA at 12%. So, let's move now to the figures. So this consistent two-pillar strategy has delivered, I think, strong results. In a robust environment, but a softer environment compared to the environment we benefit from.

Speaker Change: Integrated power business.

<unk> is building a world class cost competitive portfolio.

Speaker Change: <unk> renewables, so solar offshore wind offshore winds, we flexible assets she CCT in storage.

Speaker Change: To deliver clean film power to our customers and as you know we do object keys to be buzzy team that gets real day 2028, with a whole itchy at twist visits.

Speaker Change: So let's move now to the figures.

Speaker Change: So this consistent to beat us with EG as they rebuild I think strong result in 2023.

Speaker Change: In a robust on that roadmap, but softer faisal environment compare to the government would be defeated in 2020 two.

Jean-Pierre: We deliver, as you see here, a net, a largest net income total energy share above $23 billion and an EFRS net income above $21 billion in terms of profitability. We had a ROAC return on capital employed at 19%, 23, and a return on equity of 21.

Speaker Change: We de lever as you as you can see here the net or is that just the net income does that any as you scale all of 'twenty.

Speaker Change: <unk> for <unk> and <unk> net income for the Bulls 'twenty one beyond route.

Speaker Change: In terms of profitability.

Speaker Change: We had to actually return on capital employed.

Speaker Change: At 19% in 2020 free and <unk>.

Speaker Change: Return on equity, 20%, so that means that once again put that in AG in 2026 was the most profitable major.

Jean-Pierre: So that means that once again, TotalEnergies in 2023 was the most profitable major. In terms of cash flow, we managed to deliver $36 billion in cash flow with a strong contribution from all the different business sectors. So ENP contributed more than $18 billion, $18.5 billion. Integrated Power 7.3, Integrated Energy 7.3, Integrated Power above $2 billion, 2.2, I will come back on that later, and downstream, at 8.2 billion dollars. On top of that, we benefited last year from strong working cap relief. So cashing is coming from our working cap, around $5 billion, but to be very transparent with you, some of these. Capital Working Cap Variation; CAIM includes $2 billion of exceptional fiscal debt variation that will disappear in 2024.

Speaker Change: In terms of cash flow in 'twenty or 'twenty three.

Speaker Change: We.

Speaker Change: H to deliver cash flow at 36 billion Gaurav, we have a strong contribution of all the different business segments.

So E&P contributed to more than 18 billion there are $18 5 billion at all.

Speaker Change: Integrated by were 7.3.

Speaker Change: You take that you did you sorry, seven to increase <unk> to begin there are two points I will come back on that later and downstream.

Speaker Change: At $8 2 million Euro.

Speaker Change: On top of that we'd be initiated last year for strong working cap release. So again, she is coming from a working cap around 5 billion, but to be very transparent with you. Some of these capital working capital you should game includes $2 billion of exceptional scaled it like that.

Speaker Change: Will disappear in 2024.

Jean-Pierre: So how has this cash been used? This $36,000,000,000 plus this $5,000,000,000 of working capital have been used. So $16.8 billion has been devoted to capital investments. I will comment later on this figure.

Speaker Change: So how this cash has been used to visa <unk> expressing <unk> billion, but also we're working cap has been used so a $16 8 billion has been devoted to capital investment and will commence later on this figure.

Jean-Pierre: $16.5 billion has been contributed to our shareholder return through cash flow distribution, so payouts are above 40%. Indeed, payouts increased from 37% in 2022 to 46% in 2023, and it consisted of a 7.1% increase in the ordinary dividend that we pay, plus $9 billion of buyback. Of this $9 billion, I remind you that $1.5 billion is directly linked to the Canadian disposal. And the remaining parts of the cash flow we generated last year will contribute... to continue to deliver the company with a net debt of $6 billion and leading to a gearing end of last year at $5 billion. So now, the scorecard for 2023. I think it's clear that we deliver on our ability. For upstream production, production increased, excluding Novatec, by 2% to 2.48 million barrels per oil equivalent.

Speaker Change: 16 points $5 billion has been the goal.

Speaker Change: Contributing to our shareholder return.

Speaker Change: We the cash flow distributions will be outs, so the goal of 40%.

Speaker Change: Indeed, Spiro it's increased from 37 seven.

Speaker Change: She is 57% in 2022% to 46% in 2020 threes and it consisted in a 7.1% increase in the ordinary dividend that we paid in <unk>.

Speaker Change: <unk> 'twenty free press 9 billion dollar buybacks out of our out.

Speaker Change: Out of the.

Speaker Change: Out of these 9 billion grout I remind you that $1 5 billion.

Speaker Change: Alrighty linked to the Canadian disposal assets.

And we remain really many parts of the gift food and in June we generated last year contributed to continue.

Speaker Change: Continuing to daily to daily relate to the company.

Speaker Change: No net debt at 6 billion thereof, and leading to again end of last year at 5%.

Speaker Change: So now this golf golf for 'twenty 'twenty Frisch, I think it's clear that we deliver on Obg's.

Speaker Change: So for upstream prediction.

Speaker Change: The Paducah increased excluding noetic by 2% to 2.2 48 billion million about its probably equivalents.

Jean-Pierre: We have made a strong contribution in terms of LNG energy production that grew by 9% in line with the objective we had on that topic. Refining has a slightly better than expected utilization rate at more than 80%. So we guide at 80%, and so the final figure was 81 in terms of renewable growth installed capacity. This capacity grew by almost 6 gigawatts between 22 and 23, at more than 28 gigawatts. You get what?

Speaker Change: Are we the strong contribution in terms of LNG are any prediction that grew by 9% in line with <unk>.

Speaker Change: Ricky we had on that topic.

Speaker Change: Refining is a slightly better.

Speaker Change: The unexpected.

Speaker Change: G addition rates at more than 80, Bill sense. So Adobe we guide it to <unk> and so the final figure.

Speaker Change: It was 81.

Speaker Change: In terms of when you boil gross install capacity. So I'll just get back to your group are they almost six gigawatts.

Speaker Change: Between 22, and 23 at more than 22 Gigawatts.

Jean-Pierre: at the end of the year, leading and contributing to produce more. So, it's an increase compared to last year by more than 80%, at 19 terawatt hours, broadly in line with the objective. So now on the emission side, we reduced SCOP1 and SCOP2 from operated facilities to 34.6 million tons last year. We have two main drivers.

Speaker Change: At the end of the year.

Speaker Change: Lead union contributing to produce more acreage EG. So it's an increase compared to last year by more than 80% at 19 <unk>.

Speaker Change: Well in line with the <unk> who heads.

Speaker Change: So now on the emission sites fronts, we reduced scope went into from a great facilities to $54 6 million tons last year.

Speaker Change: Two main drivers. So first we continue to be successful in OE thoughts in island yesterday's indices to lead you with yesterday Erie give you. The example, there too.

Jean-Pierre: So first, we continue to be successful in our efforts in the oil and gas business to reduce gas flaring. I give you the example that in Nigeria, for example, we completely stopped gas flaring at the end, and we are successful in developing energy efficiency projects. On top of that, in 2023, 2023 was a more normal year in terms of CCGT utilization rates. In 2022, for obvious reasons, we had a very high utilization rate for CCGT. And so, in 2023, it's back to normal, of course, to lower the scope of one into 22 versus 23. Methane for operated facilities was reduced by 40%.

Speaker Change: Yes. My example, we compete against.

Speaker Change: I guess getting at the end of 'twenty two at G suite, and we're successful in developing energy efficiency projects.

Speaker Change: On top of that in 2026.

Speaker Change: 15, 20 fee was a more normal euro damps of CTG to utilization rates in 2022 for obvious reason.

Speaker Change: We had a very stronger geez shouldn't weigh towards <unk> until 2020 fleets back to normal.

Speaker Change: <unk> of course to Blue.

Speaker Change: <unk> went into.

'twenty two 'twenty three.

Speaker Change: Maintain for all operating facilities will reduce by 47% compared to 2022.

Jean-Pierre: 7% compared to 20%, surpassing our reductions target, and another very important key factor which translates into figure our transition strategy is the life cycle carbon, and with a reduction compared to 2015 by 13% with a target... So more energy, less emissions, but also growing cash flow. We exceeded our CFFO guidance by more than, by about $1 billion.

Speaker Change: Youre seeing a reduction targets.

Speaker Change: And another very important key factor, which translates into figure out our transition strategy eats the long lifecycle carbon intensities. We the right you can compare to 2015 by 13% we've been targets, we boosted at twist goossens.

Speaker Change: So more energy lithium Michelle that also growing cash flow.

Speaker Change: We exceeded our guidance by more than the by about $1 billion.

Jean-Pierre: The guidance restated using the same price tag as for 2023 was at $35 billion. And so the final figure, as I already mentioned, is at $36 billion. In terms of investments, we invested $16.8 billion last year within the guidance, and I will come back on that later. And CFFO payouts, already mentioned, above the 40, at 40%.

Speaker Change: The guidance states either using the same price they get to ask for 2023 was at 55 begins at all and so if you go as I already mentioned is at $36 billion.

In terms of investments, we invested the $16 8 million last year.

Speaker Change: Within the guidance and then we'll come back on that later and say if it will be outs already commented.

Speaker Change: <unk>.

The 40 years, 40% at 46%.

Jean-Pierre: CapEx. So we remain disciplined in our CapEx, in our investments, with a total of $16.8 billion in. We were very active in 2003 on the MNA side.

Speaker Change: Capex. So we remain disciplined in our Capex investments with a total of $16 8 billion there are in 'twenty freeze.

Speaker Change: Yes.

Speaker Change: We were very active in the 20th free other than via Muni side, we have a very active.

Jean-Pierre: Portfolio Management, allowing us to continue to enhance and upgrade our portfolio. Because in this figure, $16.8 billion, of course, you have, it's a net between organic APEX, around $18 billion, plus acquisition, so $6.4 billion of acquisition, and $7.7 billion of divestment. So this figure, this $6.4 billion acquisition. So on the oil and gas side, we have our 20% interest in the Sarbum Lulu fields in Abu Dhabi. On the LNG side, we have our effective entry into NFE and NFS in Qatar and the Rio Grande project in Texas. On the integrated power side, it's the acquisition of the remaining 70% stake in TotalRN, as well as our 34% stake in a joint venture with Casados Ventos, a renewable developer in Brazil. And, as you know, the main investments are our exit, our disposal of our Canadian assets, with sales to Sancor and sales... to Conoco and the sale of our retail network in Germany to Alimentation. So, very strong portfolio management last year with a strong.

Speaker Change: Will your management are going to continue to enhance to AG to high grade our portfolio.

Speaker Change: Because English Shiga 16, 8 billion without of course, you had it so net between organic Capex around 18 billion dollar plus acquisition, so six points for being the last acquisition.

Speaker Change: Seven 7 billion to oscillate divestments. So this figure of $6 4 billion of acquisition. So on the island gas sides, we have the our entries.

Speaker Change: Seven 7 billion to oscillate divestments. So this figure of $6 4 billion of acquisition. So on the island gas sides, we have the our entries.

Speaker Change: For a 20% interest in southern Peru with fields in.

Speaker Change: In Abu Dhabi.

Speaker Change: We have on the LNG side I think even three next three interface you can get off and really the only project into fat and takes ESCO LNG.

Speaker Change: And you can take it by well side. It's your acquisition of the remaining 70% stake in Tele Orion as well, our 54% stake in <unk>.

Speaker Change: Willing venture, we scheduled ventose renewable liberal appealing Brazil.

Speaker Change: And as you know the main divestments.

Speaker Change: Our exit or disposal of our Canadian assets.

The sales to Suncor and he says to two.

Speaker Change: Clinical and <unk>.

Speaker Change: The sale of our retail network in Germany to Eddie Mutational stuff, So very strong portfolio management last year with a strong to us.

Jean-Pierre: In 2023, in line with our Balanced Energy Transition Strategy, I remind you, we invested more or less the same amount of money in low-carbon molecules, so mainly integrated power, compared to what we did in oil, so it's the red parts of the pie compared to the green parts of the pie. Another way we can look at it is that we invested as much in integrated and low carbon molecules as we did in new projects, in oil or gas new products. For integrated power, the figure was $5 billion. 23, progressing in particular in implementing our strategy in deregulated markets, particularly in the U.S. So now, moving to the highlights of 23 on our two pillars.

Speaker Change: In 2020 free in line with our balanced in energy.

Speaker Change: Issuance with EG I remind you previously.

Speaker Change: <unk> invested more or less the same amount of money in low carbon with EQT, so mainly integrated power co.

Speaker Change: Compare to what we eat in oil so it's the red box of Dubai compared to the Red.

Speaker Change: Green thoughtful Dubai.

Speaker Change: Another way, we can look at it.

Speaker Change: Is that we invested as much in integrated and low carbon molecules as we did in your projects in oil and gas new projects.

Speaker Change: Go integrated power the figure was eight whereas the 5 billion without.

Speaker Change: 'twenty for each quarter.

Speaker Change: What are they seeing in particular in employments email houseware tge's, indeed get deregulated market, particularly in the U S and in Europe.

Speaker Change: So now moving to the highlights of 23 ish on two P dos.

Jean-Pierre: All segments have been achievements and a strong performance last year in line with our strategy and objectives, in upstream and gas, our production which... 2.48 million barrels of oil equivalents per day, benefiting from a start-up in January of Block 10 in Oman, a fab share run in Azerbaijan in July, as well as, as I already mentioned, our entry into Sarbo Blue in Abu Dhabi and our effective entry into the GJ The company completed the divestment of its Canadian oil assets in line with its strategy to focus on low breakeven assets for Downstream. We generated $8 billion of cash flow last year, and so we were able to, this figure is a result of the fact that we were able to capture high refining margins that averaged $69 per ton last year. In 2023, we awarded EPC contracts for the Amiral project for 11 billion. Contracts, so it's our petrochemical integrated complex in Saudi Arabia. That will come on stream in 2027.

Speaker Change: All segments has been to achievement and a stronger fall amongst last year in line with our strategy and objectives.

Speaker Change: In upstream and gas for the churn Richards.

Speaker Change: 0.2 points 44, 48, 3 million barrels of oil equivalents per day benefiting from the sector.

Speaker Change: In in January.

Speaker Change: The Blackstone in Oman.

Speaker Change: Actually run in a job I join July.

Speaker Change: As already mentioned our entry in Cebu in Abu Dhabi, and I always say to eventually E. J P project in Iraq.

Speaker Change: The company completed.

Speaker Change: Completed the divestment of its Canadian oil assets in line with our strategy to focus on breakeven assets.

Speaker Change: But downstream.

Speaker Change: We generated 8 billion of cash Russia until we get to <unk>.

Speaker Change: You did.

Speaker Change: This result is a L.

Speaker Change: <unk> as a result of the fact that we were able to capture high refining margins that average 69 last year.

Speaker Change: In 2020 feet, we awarded EPC contract for the <unk>.

Speaker Change: While projects 11 million contracts. So it is a petrochemical and integrated complex in Saudi Arabia.

Speaker Change: We use as I said Yamaguchi that will come on stream in 2027.

Jean-Pierre: The company also announced the sale of some European retail networks to Alimentation Couchetard. So we completed the German portion before the closure, and the remaining parts, so in the Netherlands, in Belgium, and in Luxembourg, it was completed early in January. So we pursued our growing strategy in LNG, especially in the U.S. Today, we are the largest LNG exporter last year with more than 10 million tons of capacity and increasing our future position to more than 15 million tons per year through our entry into the Rio Grande LNG exporter. And it says FIDE.

Speaker Change: The company also announced the sale of some European retail it was to any potential Gustaf until we completed the German portion before the closure and the remaining box so in the Netherlands in bed German Utica Stambul East West completed early Jeff.

Speaker Change: 2024.

Speaker Change: So we pursue those green sweaty gene LNG, especially in the U S.

Speaker Change: <unk>, where we went to again, we're the largest LNG a quarter last year with more than 10 10 million ton.

Speaker Change: <unk> of capacity and increased our future acquisition to more than 15 began to acquire hu our entry into the on the LNG projects.

Speaker Change: And it takes a day in July.

Jean-Pierre: We also reinforce our leading position in Europe, Rigaz, with the start-up of two additional FSRUs, so one in Germany and one in France. In integrating our business segments, we pursue profitable growth. Strategy with an additional 6 gigawatts of renewable capacity. And we are able to generate more than $2 billion of SFFO, $2.2 billion, compared to something like one, something like one last year. That means that we are able to more than double the CFO generated by this activity in 2023. In 2023, we also accelerated the development of our integrated business model in two key deregulated markets, the U.S. on one side, with the announcement of the acquisition of three CCVTs for 1.5 gigawatt capacity in Texas, and in Germany on the other side, announcing the acquisition of two German companies, one a top-tier renewable energy So, we have built our upstream portfolio through the years in a low cost and sustainable way, as illustrated, I think, by these two charts. So, starting from the left. We'll go back to 2018.

Speaker Change: We also he owned fourth our leading position in Europe with regards we started with two additional fsrus. So one in Germany when he calls.

Speaker Change: Even integrating our business segments, we pursue a path to profitable growth.

Speaker Change: Sweaty G, leaving an additional six gigawatts of renewables capacity.

Speaker Change: And we are able to generate more than $2 billion specific to point to be in the <unk> compare to one so people that went last year.

Speaker Change: That means that we are able to more than double the seafood guaranteed by aegis like DVT, although 2023.

Speaker Change: In 2020 free as well, we accelerated the development of our integrity business model into key deregulated markets. The U S. On one side with the announcement of the acquisition of <unk> for at 1.5 gigawatt Skip ICD in Texas and in Germany of Yoga sites announcing the acquisition of <unk>.

Speaker Change: To gentlemen companies one talk to you when you bought them yesterday, I go get door, and a leading battery storage deliberate though.

So we have built our upstream portfolio goes.

Speaker Change: With a low cost and sustaining a sustainable way.

Speaker Change: You just say Gee, they seeing babies to Scott's so starting from the left.

Speaker Change: We'd go back to a 2018.

Jean-Pierre: We are consistently reporting the lowest upstream production costs among all the majors, which is, I think, a structural advantage and allows us to be resilient even in a low-price environment. Our upstream production cost averaged $5.5 per barrel in 2020. It was $5.1 per barrel in the fourth quarter, benefiting from the divestment of high-cost Canadian oil.

We have consistently reporting the lowest upstream production costs among all the major OS which is I think a structural advantage and nobody likes to be resilient, even in a low price environments.

Speaker Change: Olive scheme production cost averaged five point sides were up about in 2020 fees. It was five points when Bob already doing in our in the fourth quarter are benefiting from the divestments of the high costs Gurnard yen assets and Thats why we target each for visco.

Jean-Pierre: And that's why we targeted this year's production cost at $5 per barrel. Our portfolio is a low-cost portfolio, but it's also built to last. And so here's the illustration of the second graph on the slide.

Speaker Change: Production cost at <unk> were up about.

Speaker Change: So our portfolio is a low cost portfolio, but it also built to last and so easy illustration of the second graph on the sites. We had I think demonstrated the same consistency with our reserve that we had with production costs as shown in the shops.

Jean-Pierre: We have, I think, demonstrated the same consistency with our reserves that we had with production costs, as shown in that chart. We continue to replace our reserves, maintaining a strong and steady pooled reserve life index of around 12 Euros over the last 5 Euros, and this positions us as the second among the majors. And in 2023, we achieved a strong reserve replacement ratio, well in excess of our production, so 141%, and 2P, a Proof-Proof Probable Reserved Life Index at 18 years. So now moving to the integrated energy and integrated power segments, that's the two growth segments in our portfolio, that together contributed to almost $10 billion of cash flow in 2023. So we provide here some metrics comparing 2023 figures with 2021. For obvious reasons, 2022 was an exception earlier in relation to the crisis in Ukraine and the war between Ukraine and Russia.

Speaker Change: We continue to replace our reserves, maintaining a strong and steady proved reserve life index.

Speaker Change: F around 12 euros, although the last five years.

Speaker Change: And these position us as the second among the majors and in 2020 fleet, we achieved the strong reserves replacement ratio well in excess of operating expense of one point to one then lead to a 41% and a place.

Speaker Change: To be you're close to a probable reserve life index at 18 years.

Speaker Change: So now moving to the integrated LNG and integrated power segments that with two of our Google segment in our portfolio that together contributed to our almost 10 billion Ralph tissue in 2023.

Speaker Change: So we put a idea submit weeks comparing a 20 year 'twenty free she goes with 2021.

Speaker Change: For obvious reason in 2022 was an exceptional year.

Speaker Change: Alicia and that was the crisis between the cleaning of the war between Ukraine, and Russia and so.

Jean-Pierre: So that's the main rationale behind the fact that we made this comparison, 21 and 23. So in 2023, Integrated LNG generated $6.2 million net operating income, $7.3 million of CFFO, with all the metrics, in fact, growing compared to 2021, thanks to the growth in our portfolio, so 44 million ton sales in 2023, and benefiting from a higher LNG price environment. All in all, the integration, the integrated energy profitability improved by 18%. So for Integrated Power... Adjusted Net Operating Income was $1.9 billion last year, and CFFO was slightly above $2.2 billion.

Speaker Change: <unk> may not actually be I'm excited too we made these competitors in 'twenty, one and 'twenty three.

Speaker Change: So in 'twenty three integrated Angiogenin at $6 2 million to our net operating income seven <unk> <unk> CFO.

Speaker Change: Are we all the midst weeks in fact is growing compared to 2021, thanks to the Gulf to a path where you also have 40 or 44 million ton sales in 'twenty or 'twenty, frisch and benefiting from higher LNG price environment.

Speaker Change: All in all the integration, we integrated <unk> in quotes at 18%, which is in 2021st.

Speaker Change: So for integrated power.

Speaker Change: Our adjusted net income was $1 9 billion thereof.

Speaker Change: Yeah.

Speaker Change: On Saturday for slightly above 2.2 billion thereof. So it doesn't mean, that's the gap between the and then I know Ian safe before he directly linked to the fact that in during the fourth quarter, we benefited from some dividend Speedway.

Jean-Pierre: So that means that the gap between the NOE and CFFO is directly linked to the fact that during the fourth quarter, we benefited from some dividends paid by some of our equity affiliates, and mainly Clearway. This means that the cash flow almost tripled between 2021 and 2023. And you see the production, it was 21, 21 terawatts in 2021, 30, 43 in 2023, with power generation from renewable sources nearly tripling, as 7 in 2023, 19 in 2023. Roachier was at 10% in 2018, in line with our target, which was set last year.

Speaker Change: Some of our.

Speaker Change: Equity your equity F E axon mini Yoki away.

Speaker Change: So that means that the cash flow almost triple between 2021, and 2020 and you'll see the prediction.

Speaker Change: It was 21.

Speaker Change: 'twenty you went to I went through in 2021.

<unk> 43 in 2023.

Speaker Change: We use about what generic shown from renewable nearly tripling it.

Speaker Change: <unk>.

Speaker Change: Say then in 2023 19 in 2023.

Speaker Change: Alright, she was at 10% in 2020 freeze in line with our objectives. That's was set last year.

Jean-Pierre: The last slide is a benchmark of TotalEnergies performance compared to our peers, using three main metrics, so white share, approved reserve, life index, TSR, and sustainability rating. So thanks, I think, to the consistency of our strategy, the strength of our delivery, we are competitively positioned versus our peers. Once again, TotalEnergies, as you can see on the slides, was the most profitable supermajor with a ROACH at 19% in 2023.

Speaker Change: So the last slide as a benchmark.

Speaker Change: Note that in Yahoo performance compare to dwell appeals.

Speaker Change: Yeah.

Speaker Change: Using a free made may tweak so what she have proved reserve life Index D S and CIS and the sustainability.

Speaker Change: Just any ability Ricky so thanks, I think to the consistency of our strategy the strength of our deliveries were competitively, but has shown the best juice L. P. S.

Speaker Change: Well once again totally now who you see here on the sites was the most profitable Super major with a watch at 19% in 2023 ish on the reserve side, our Pud reserves life Index West 12 euros as I already mentioned in 'twenty towards history, which was us number two among the majors.

Jean-Pierre: On the reserve side, our Proved Reserves Life Index was 12 years, as I already mentioned in 2023, which puts us number two among the majors. This is, I think, really a testimony to our continued success in exploration, resource development, and active M&A and selective M&A. On a different note, TotalEnergies is once again the best-in-class state rating among the majors, a demonstration that it's possible to be the most profitable major on one side and to be a leader in the energy transition on the other. And lastly, our five-year total shareholder return has averaged about 13% per year, ranking on par with our US peers and clearly outperforming our UK peers by a wide margin. Our ability to set and execute a consistent strategy, sustain a rich portfolio of opportunities, maintain the dividend through the cycle, like during the COVID crisis when it overcut it, and more recently, significantly increasing shareholder distribution, have all contributed to our strong... So, in summary..., to terminate this section.

Speaker Change: Cesar I think really a testimonies.

Speaker Change: Due to our continued success in exploration, we saw developer and active and selective M&A.

Speaker Change: On the <unk> underneath or ignore Titania. He has once again the best in class state switching of the among the major oil a demonstration that it's possible to be the most profitable.

Speaker Change: Mitra on the on one side and to be a leader in genetic 20 shares of yoga sites.

Speaker Change: And lastly, a five year total shareholder return as average.

Speaker Change: About 13% per year ranking on path.

Speaker Change: The USPS and outperforming clearly you keep us by a wide margin.

Speaker Change: Our ability to set and execute and execute the consistence with EG sustain a rich portfolio of opportunities maintained with davita and full they cycle.

Speaker Change: <unk> could be quite easy 2000, twenty's when over <unk> and more recently it seems you're getting and you should get to you that is increasing shareholder distributions have all contributed to our strong TSM.

Speaker Change: So in summary.

Speaker Change: To terminate on visa section 2023 was a strong year for telenor each another big step in terms of shareholder distribution and balance sheets strategy and.

Jean-Pierre: 2023 was a strong year for TotalEnergies. Another big step in terms of shareholder distribution and balance sheet strategy. On a positive note, I think I will leave the floor to... Good morning, everybody, or at least... Evan.

Speaker Change: Positive note I think I will leave the floor to Patrick.

Patrick: Good morning, everybody.

Patrick: Hey, Ryan.

Patrick: I, just as always like to see that slide.

Patrick: I just, as always, I like to see that slide because I think I should insist on the fact that we are demonstrating. And I think it's because we are the most profitable, but we have the right to implement the energy transition strategy that we have decided. But it's feasible to remain at the top of profitability and to transition as well, including investing a third of our investments in electricity and also, by the way, and I think it's important to keep a sustainable portfolio of oil and gas projects like we want to do. So it's an end strategy, it's oil and gas, and low-carbon energy, in particular electricity. So just this time, I will not repeat the strategy, but, in fact, it's true that...

Patrick: Because I think I should insist on the fact that we demonstrate.

Patrick: And I think it's because we are the most profitable, but we have the right to implement energy transition strategy that we have decided but it is feasible to remain at the top of profitability and to transition as well and including to invest.

Further our investments in <unk> and in electricity and the and also wiser way and I think it's important to keep a sustainable portfolio of oil and gas projects like we want to do it so it's a.

Patrick: <unk> strategy is oil and gas and.

Patrick: Blue carbon and energy in particular electricity. So just with time or were not repeated this strategy, but in fact, it's a tool that is.

Patrick: The best way to speak about strategy is to execute it, so 23, I think, Jean-Pierre, I'll show you how we have executed it positively, and 24, we'll maintain that strategy, and we'll have no big news. Sometimes I think TotalEnergies is a little bothering you, but it's better to be consistent and achieve continued success. So, and it's true that we have another way to demonstrate that, and I mentioned that one year and a half ago, and 23 have reinforced the message. In fact, we have a company that is delivering much higher cash flows with the same brand than in the previous decade. You know, you can see on this chart that the dot points of the last five years are quite well aligned, but the billion dollars per barrel is much higher in terms of, and is more accretive than it was in the past. And I think that's the result of all the repositioning of the portfolio, the oil and gas portfolio, what we call upgrading the portfolio. That's a reality for many people.

Patrick: The best way to execute through to speak about Sochi to execute it so 'twenty free.

Patrick: Thank John P. I assure you we have executed it and positively in 'twenty four we maintain best strategy and it will have no big news you know, sometimes I think that that he knows he's a little boring you, but it's better to be consistent and to control continued success.

Patrick: So and it's true that we have another way to them on the slides that are not even mentioned about one one year window out fugu entrance. If we have reinforced the message in fact, we have a company, which delivering much higher cash flows. We've the same brands van in the previous decade, who knows where you can see them.

Patrick: Childhood too.

Patrick: So that points of the last five years are quite well aligned by the way but.

Patrick: The billion dollar hospital Golub always much higher in terms of exit Milwaukee, let's even it wasn't the pasta. They think that's the result of all of the repositioning of the portfolio of your oil and gas portfolio with record high grading the portfolio. That's a reality and we can see that in fact in the in the results.

Patrick: And we can see that, in fact, in the results. And I think it's one of the new TotalEnergies. TotalEnergies was perceived as a defensive stock, I would say, which was, in fact, amortizing the law. The price of Hydrocarbons, but now it's TotalEnergies; it's also benefiting from high oil prices. And that's why we can have a more aggressive distribution policy towards shareholders. At the same time, the result is, of course, because we have... These are the ratings for the portfolio. It's a break-even point in the portfolio. It's very good. It's under 25.

Patrick: And I think that's one of the newer to Dynegy used with energy was perceived as a defensive.

Patrick: A difference your shares I would say, which was in fact to amortize in the rule.

Patrick: Price of hydrocarbons, but no. It sorts of technology is also benefiting from iron ore prices and that's why we can have a more aggressive distribution policy towards shareholders.

Patrick: At the same time, so reserved is of course, because we have.

Patrick: These high grading of our portfolio, it's a breakeven as a portfolio where its a very again, it's under 25 is west 22, and 'twenty free, but it's one of the clear.

Patrick: It was 22 and 23, but it's one of the clear, strong characteristics of our portfolio and the strategy. And all that has translated into something which is very new for us. It's a very low gearing, 5% gearing, so a net depth of only $6 billion. And that offers, of course, a lot of capacity to engage in our growth strategy. We want to grow our energy production by more than 5% to free up and more on the electricity side. It also offers us the capacity that the next cycle will need to be able to maintain the strategy through cycles, and this is what I think shareholders should expect from a company like TotalEnergies. Just a few words about the market we'll face in 2024.

Tonga characteristics of our portfolio and the strategy and all of that is translated in something which is very new for us. It's a very low gearing, 5% gearing so net depths over on only $6 billion.

Patrick: And that's of course, a lot of capacity to engage in all growth strategy.

Patrick: More fast we want to grow energy production by more than 5% with two frito Lay's real cowboy and send more on V. H because its tied it's also authorized a capacity you bet. The next <unk>.

Patrick: Cycles to be able to maintain as a strategy for cycles in places where they can show orders would expect from a company like totally niches.

Patrick: Just a few words about the market, we will face in 'twenty four 'twenty free was talking in terms of oil market plus two or an increase of more than 2 million barrel of water per day part of it was a recovery of the previously as a coffee the recovery in particular in the.

Patrick: 2023 was strong in terms of the oil market, plus an increase of more than two million barrels of oil per day. Part of it was the recovery of the previous year, the COVID recovery, in particular in jet fuel, in aviation, and also in China, because in 2022, China was still... and the impact of the COVID policies they exited from COVID policies long ago. And that's one of the key challenges for the energy transition. On the supply side, it's true that we have some non-OPEC countries, particularly in the Americas. It's the US, it's Brazil, and Guyana, which are bringing some new oil. OPEC is managing that new supply and demand. I would say they did very well in 2003, actually, more or less stabilizing the price around $80 per barrel.

Jet fuel in aviation and also in China, because in 'twenty two in fact, China, we're still in.

Patrick: The impacts of the Covid, they exited from Covid policy as long.

Patrick: Later, one of our countries and in fact, so 2 million west quite odd yeah, yeah. He's announcing a breast one point tool for 'twenty four we share with you which is people will come in slower but in fact, it's normal I would say it's back to normal when you look to be a increase of the order demand from 2000 to two.

Patrick: The market is supported by the geopolitical tensions in the Middle East, that's true. There is more bearish thinking, but OPEC is still there, and I think the move of Saudi Arabia, but they're seeing a ceiling of $12 million per day, is contributing to stabilizing this market as well. On the energy side, I would say... Of course, with the high prices, we've seen lower growth, but still 6% per year as an average from 2015 to 2023. I'm convinced we will see a good year in 2024 again, with growth coming back in particular.

Patrick: 20 forgive your average is one 2% per year, 1.2% per year by the way. It is the average roof was the population of the planet. So varies directly because population in oil demand. So he's back to normality. So some people will come out because China is real world, though in fact, it's back to normality, but it's nothing surprising and in fact and.

Patrick: So we don't see still even if some people want some Google once we see a deterioration of your roof, knowing trucks that we added teams, but we are back to directing people prediction Gulf and that's one of the key.

Patrick: We see China. China has grown its imports by 11% in 2023 compared to 2022. Not yet at 71 million tons. They are not yet at the level we were at in 2021. They were at 81.

Patrick: Shannon for the energy transition on the supply side, but through but we have some non OPEC countries particular idea America houses in the U S. It's the Brazil, Guyana, which are bringing some new oil the OPEC is managing that.

Patrick: New supply and demand I would say, our we have done very well in 'twenty. If we in fact more or less stabilizing the price around $80 a barrel today, probably is a market as supported by geopolitical tensions in the middle East West through Weser more bearish.

Patrick: So there is still room to grow. We see today that Chinese buyers are quite aggressive. In the meantime, Europe has grown a lot from 65 to 113, 114, 122, 113 imports of LNG because we had to replace the Russian gas. So that has been a big shock in the market, which is being absorbed. Twenty-four, so we expect better demand. But in fact, the tension will remain because the LNG capacity increase is limited. Not much new capacity is coming on stream. We identified something like 8 million tons by mid-November.

Patrick: King, but a big IQ still there nice things and move of Saudi Arabia, but Sydney, though sitting a 12 million barrels per day is contributing towards stabilizing this market as well.

Patrick: On the energy side I would say.

Patrick: Of course, we've seen with the high prices or lower growth, but still at 6% per year as an average from 15 to 25th I'm convinced we will see a good year in 'twenty for again coming back in particular, we see China, China, who has gone as imports by 11% and 23 compared with 22, not yet that 70.

Patrick: So that's for the environment, which is globally positive for TotalEnergy. The key targets, you've seen the scorecards for 2023, so what are the key targets for 2024, and these slides summarize them. Upstream production, 2.4, 2.5, plus 2% excluding Canada. We'll come back on that.

Patrick: They are not yet at the level, where we're in 21 of about 81, so they still want to what we see today to Chinese buyers quite aggressive.

Patrick: You've seen them signing a number of long term contracts. They still have to have a mandate to continue side. Some of them. We have also some discussion with some of these players to to engage so they are willing to to diversify adviser waived their source of LNG and I would not be surprised to see and particular with GKN was around $10 per million Btu.

Patrick: Production costs, it was mentioned, we will consolidate our advantage, $5 per barrel. TotalEnergy sells about 40 million tons; it's 30% equity, 40% long-term supplies, and 30% spot, so the spot, of course, could have a variation. We will have a good utilization rate in refining because we have a lower program of turnarounds, so we are target 85%. The renewable course installed capacity will continue to grow.

Patrick: You like it does today as a good driver and it would not be surprised to see China coming back to 80 million tons like they're willing 21 and 24th at this same time in the meantime, you hope as growing a lot on from 65 to one other 13 114 22, when it's Fujian imports of LNG, because we had to replace the oil and gas so.

That has been a big shock in the market, which is being absorbed 24. So we don't think we expect a bit of demand in fact retention will remain because the LNG capacity increases are limited.

Patrick: We have been on the pace of six gigawatts per year since last year, and we intend to keep it that way. I remind you that the key meeting is 35 in mind in 2025, so we will need to accelerate to seven gigawatts. But we are on the right pace, I would say, that we wanted to reach.

Patrick: Not much new capacities coming on stream, we identify them something like 8 million adults, but part of it is being Arctic two which will have a limited market I would say so in fact, you have a tension in the market and if any of these plants as a problem like we at Freeport two years ago again attention will be come back into the market so but.

Patrick: And more importantly to us, because it will impact, of course, the results, it's electricity net production. I will come back on that, more than 45 terawatt hours compared to 33 in 2025. The emissions, we want them to continue to go down, so the 38.8 seems to be a little high, but I remind you that when we acquire gas-plowed power plants in Texas, they will add some CO2, so it's a choice. Methane, it's a strong fight.

Patrick: It's not my message on the LNG price, although a good for mark for demand in particular in Asia and China.

Patrick: Limited additional supply 24, and in fact, I think we've mentioned it would be a beautiful 25 is the same it's only by mid 'twenty six 'twenty seven but really we just see more supply coming on stream.

Patrick: So that's for gender a month, which is globally positive for total energy.

Patrick: Vicki targets, you've seen the skull caps fall 'twenty so.

Patrick: So 1000, Qatargas 424 of this summer so slides summarize it upstream production 2.42 points five plus 2% excluding Canada.

Patrick: We are one of the leading companies in this fight. The objective is an 80 percent reduction by 2030 compared to 2020. The 50 percent was supposed to be achieved in 2025. We are at minus 47, so we'll see if we have the ambition to reach it. It's not linear because, in fact, it's project by project, so you could – so for E&P, it's not linear, but 50 percent seems to be the ambition to reach it one year in advance. And then the last indicator, for me, the most important one, is what we call the life cycle carbon intensity of our cells.

Patrick: I will come back on that prediction costs, it's worth mentioning we will consolidate our advantaged $5 per Boe.

Patrick: And then she says above 40 million tonne, its 40% equity or 40% long term supplies and 50% spot. So it's just part of good Goodbye I've evaluation.

Patrick: We'd have a good utilization rates in the refining because we ever lower program of turnarounds. So we target to 85%. So we knew we were of course installed capacity will continue to go we are on the face of six gigawatts per year since last year, and we intend to execute on them.

Patrick: In fact, there should be cells on the paper because, in fact, it's a way to – it's a strategy. It's translating our cells to customers. It's recovering scope one plus two plus three, and we have an objective to decarbonize, I would say, or to have low-carbon energies in – to sell energy with a lower carbon content. Fundamentally, it's 25% by 20% course more we will sell electrons, so better. For the cash flow, I will come back, $34 billion in $80 Brent, $10 per million. It's a mistake. It's $50 per ton and not $60 per ton. $34 billion, a net investment of $17-18 billion, we'll come back on it, for third in Integrated Power and Low-Carbon Molecule So that's the objective. So, coming on the CapEx.

Patrick: Mind, you, but a key meeting we have 35 in mind in 25, so we would need to accelerate to seven gigawatt, but we are on the right pace I would say as we want it to rich and more importantly to us because it will be in parts of course.

Patrick: Results at Ebix Christiansen met production I will come back on its more than 45, terawatt hour compared to 43 in 'twenty from <unk>.

Patrick: We aim assurance, we want them to continue to go down so that's a $38 eight seems to be a little odd, but I remind you that when we acquired gas fired power plants and takes us it will add some C O two suites of choice.

Patrick: It's a strong fights are leading as a we all want is a leading company in these five objectives, 80% about 20 foods jurisdiction compared to 2020 is a 50% were supposed to be achieving 25. We are at minus 47. So we'll see if we have the ambition to reach its 50% is not linear.

Patrick: On the Capex side, we have a rich portfolio of projects either on hydrocarbons, oil, LNG, and also on the integrated power side. So we want to grow our energy production by 5% between 2023 and 2028, and 2% to 3% for hydrocarbons. So we need to invest to put all these nice projects into production. So we had a guidance of $16-18 billion for the five years.

Patrick: Because in fact, it's project by project. So you could so for E. N piece, not a linear abbott's, 50% seems to see ambition to Richard one year in advance and then the last of the law.

Patrick: Last indicator for me is the most important one is what we call the lifecycle carbon intensity of all sales and factory as they should be sales on paper because in fact, it's a way to transition strategy. It's translating all sales to customer is recovering scope, one plus two plus three.

Patrick: These 24 we... We announced $17 to $18 billion, all segments benefiting from the $1 billion increase, I would say, which is, so we keep the discipline, and a third in the integrated power and low carbon molecule, a third in new projects, oil and gas projects, oil and energy projects, and a third in maintenance. So the guidance is the same as what we announced in September. So what do we intend to do? On the old side, the idea is to continue to deliver, to work to deliver all this growth and middle growth. So we have on this slide a summary of different actions, which are, of course, Nicola's team's, I would say, focus on delivery.

Patrick: And we have an objective to decarbonize, I would say or to a rural cardboard and edges in the two cell.

We have a lower carbon content fundamentally it's 25% by 'twenty for tea. We are itchy are progressing it's a visionary it was minus 14% next year minus 14% more or less 1% per year.

Patrick: It's linked directly linked to the.

Patrick: Of course, more we were to sell electrons so beta at Ts.

Patrick: What was your cash flow I will come back 34 billion dollar in a $80 Brent and wrote off I mean, you. It's phase a mistake, it's $50 per tonne and at $60 per ton $44 billion.

Patrick: Our net investments of 17 18 billion will come back on it.

Patrick: On the major projects, we are progressing, in particular in Brazil. You know, somewhere in our portfolio, Brazil is replacing Russia, in fact, when you look at our ENP. We had Miro 2, which came on stream the last day of the year, and the Petrobras Way to celebrate the New Year. For me, it's the first day of 24, not the last day of 24.

Patrick: Our food and our integrated boiler and look up with molecules and the commitment we take two crore shoulders.

Patrick: More in September more than 40% of cash flow payout.

Patrick: So that's the objective so coming on the Capex.

Patrick: On the Capex side, I know, we have a rich portfolio of projects, either all night or cupboards oil LNG and also on the integrated both sides. So we want to grow or energy production by 5% between 23 and 28 in two to three per cent for hydrocarbon so very new we need to invest.

Patrick: We are working on Meru III, which Petrobras is planning to start by N24. Then we have Meru IV which is also on its way, which will be the second half of 2025. And then in the U.S., we are working with Chevron and Balimore. For the operated ones, we have, of course, very important ones in Uganda. Don't punish Eric.

Patrick: Yes.

Patrick: To put this to visa.

Patrick: <unk> projects into production. So we are the guidance of $16 billion to $18 billion for the five years. These 24, we we announced $17 billion to $18 billion.

Patrick: All segments benefiting from one digit increase I would say.

Patrick: Martin Thank you for the discussions. And on block 58, that's Suriname. This one has not yet been named. Maybe it's TracBadu, or I don't know.

Patrick: <unk>, which is so we keep a disciplined and a food and integrated power and look up with molecule.

Patrick: Food and new projects oil and gas projects and energy projects and a food in maintenance. So the guidance is a is the same what we announced in September.

Patrick: There are two discoveries. That's TracBadu and the other one. That's Saipakala.

Patrick: Maybe it will give us a name. It's not yet there. But this one, of course, is important because it's a 200,000 ball per day project. We have 50 percent of it. So it's an important project. The objective being to sanction it before year end. For We are working on it. All these, I remind you, are the criteria.

So what do we intend to do on the old side are we continue the idea is to continue to deliver to work to deliver all these golf and mid up until growth. So we have we're on this slide a summary of our deferral of infections and which of course Nicola our teams are I would say focus.

Speaker Change: Yes on the.

Patrick: Thank you for your attention. And so we progress. It's a virtuous criteria.

Speaker Change: On the major projects we have.

Speaker Change: We are progressing in particular in Brazil, you know somewhere in our portfolio Boise is replacing Roche I in fact, when you look to ignore in E&P.

Patrick: And this will be the case of the four projects that I have just mentioned. An innovation that we announced yesterday or today, I don't know, but we need to continue to work on the capex costs. Of course, you know, we face an environment with more inflation. In particular, in the drilling rigs for deep water, we've seen the market moving from $200,000 per day to more than $400,000 per day. So we decided to take an innovative action, which is to acquire part of a rig in Asia. In 24, another comment I want to make, these are the new... Productions coming on stream, Meru 2, Thura in Denmark, the redevelopment of Thura that we inherited from Musk. It's planned for the end of March and beginning of April.

Speaker Change: We had mirra two which came on stream are the last day of the year.

Speaker Change: So Pittsburgh last week to say, there's always a new year I for me is the first year of 'twenty. Four firstly, there are 24 hours. The last day of 2002, plus one well. So we expect more production, but we are working on making free where Petrobras is planning to start a buy and 24.

Speaker Change: When we have met with four which also also in on his way, which would be singled out for 25 and then in the U S. We are working with Chevron Valley Mall.

Speaker Change: So that's a non operated assets probably operated once we are of course very important ones as Uganda.

Speaker Change: And company share at most.

Speaker Change: 140 fostered by per day, so it's a big big impact. So we pull guys and we have the target and 25. So we should be up at 24 around 60% of progress. It has already been launched and the fact that we of course of our teams on the ground are visits than say two times twice in the last quarter.

Patrick: ENCO in the U.S. It's an important comment, and we just announced a new production coming into the portfolio. Of course, we need to close it by the end of the first half, probably.

Patrick: Gas in Malaysia, we are acquiring OMV shares in this field with quite a good potential to deploy beyond the asset. There are a lot of opportunities. It is also a way for us to consolidate our partnership with Petronas working there. All of these additions, including the ones which have been put into production in 2023. When you look at them, which is Absheron, which is... Sarbhum Lulu are in Iraq as well

Speaker Change: And where we.

Speaker Change: Operations have been handed over to us and we are executing the first phase the first phase of the project towards the production from 60000 barrel per day to one of the 10000 barrel per day. So that's the first phase then we will go to two other than more than 20, but at the same time as you know we work on the gas flaring and on the solar part.

Speaker Change: So that's I would say the major projects, we flew about carefully we have in 24 hours, we had a quite a big gap.

Patrick: When you look at their cash flow per barrel, they are all accretive compared to the portfolio. And that's important. They have an average, I would say, of cash flow per barrel of around $30 per barrel compared to our portfolio, which is around $22. So it's, again, back to my comment that we continue to evaluate the portfolio. And that's very pragmatic.

Speaker Change: I'd say our agenda on sanctioning new projects in Brazil again, we our inbox you have been successful in buffa T. O L. So we ironbark with sanctions shipyard to adapt with two on which a Petrobras I think he's making a joint.

Speaker Change: Sort of Jordan tender, we are lucky to be on both sides.

Speaker Change: We have also kept menu, which is a name that which has been selected for the development on block 20 to 80000 barrel per day development in block 20, we are operator, we should be able to sanction that by middle of the year, We actually lost I would say the last discussions.

Patrick: It's true for acquisition and investment, which we acquired in Sarbhum Lulu and Sapura, compared to what we divested, by the way, in Canada, making an accretive part of the barrels that we produce. It's true as well for the organic part of the portfolio. So that's an important message, in particular at a time when, in fact, the declining part of our portfolio, for example, in the North of the UK, has a much lower CFFO per barrel because of taxation. So we continue to upgrade the portfolio for business projects. Exploration.

Speaker Change: And on block 58 about Suriname. These one let's look at the name maybe its a talk baidu are I don't know what would be our two discoveries have talked Baidu Bureau sat back out or maybe it will give us a name.

Speaker Change: Let's advance, but this one of course is important because it's a it's why such one of a thousand ballpark. The projects, we have 50% of it. So it's an important project the objective being to sanction it before year end 2024, and we are working on it.

Patrick: It has been, for TotalEnergies, a successful story for the last year. We did not mention Nigeria and Cote d'Ivoire or Cyprus, by the way, where we are confirming with VNI. We have 50% of its discoveries with VNI in Cyprus.

Speaker Change: <unk> I remind you is a criteria to sanction projects, we assess the profitability at $50 per Boe or one of them and each projects with respect to conditions, one cost or would say economics, it's less about 20 drill off of our list I'd put it at all or breakeven after tax have you ever one is.

Patrick: We have gas in Cyprus, for sure, so we will find a way to have an efficient development process. And I think being partnered with VNI, who obviously has some capacities in the neighboring countries, is a nice way to, and I love the fact that IANA is keen to go to shorten the time to market, so I fully support that, in particular in this part of the Mediterranean Sea. Here, I insisted, I just mentioned Saqqapala South and Krak Badu, so I will not come back to Suriname.

Speaker Change: Emissions less than our portfolio average in the portfolio average as the rule is lower towards 20 kilogram per Boe.

Speaker Change: 2020, so portfolio of Rajeev Misra and intensity is 18th was renewed criteria or is it less about 18 kilowatt hour of zero two.

Speaker Change: And so we progress it's a virtuous criteria and this will be the case over the four quarters.

Patrick: In Namibia, we continue to drill. So, in Mangeti, I can tell you, we have found again some hydrocarbons in Mangeti. We find again the hydrocarbon level of Venus or the extension to the north, as it was commented by one of my peers, and we share the data with our neighboring peers. From the different appraisal wells and the test, there is clearly not an heterogeneous, it's not a homogeneous field. There are a lot of hydrocarbons, but we need to, there are some sweet spots in terms of productivity and permeability.

Speaker Change: With shop just mentioned.

And innovation that we announced yesterday or today I don't know, but we need to continue to work on the Capex costs of course, you know we face an Android, but we should have more inflation in particular in the drilling rigs for deepwater we've seen the market moving from $1000 per day to more than 400.

Speaker Change: Deposit bullet per day, so we decided to.

Speaker Change: To take care of an innovative action wishes to acquire part of a week.

Speaker Change: Because to control costs in fact for us.

Speaker Change: We've vantage, 75%, it's a way to edge in fact of course on joining the company will benefit from but I can tell you is of course I'm not for one let's posit bottom up a day. They all mature web advert I know, it's a some people, but we know we are using a fleet of eight to 10 rigs per year, so to try to manage.

Patrick: There are some areas which have less good characteristics. I repeat that, on our side, we see a first development clearly in our hands. It's no question of optimizing. We'll continue to drill for many debates in the company because everybody is excited. We have another exploration potential well on the south of Venus called Kokabun, and we can also continue to appraise what has been discovered.

Speaker Change: One maybe it's only the first one of our fleet, but it's a way to exit cost because we cannot just accept that because of less competition across our increasing because the market is not as daily visits more less competition. So we have decided to move our Westwood rating during 15 years I realize one of my personal objective.

Patrick: So clearly, Namibia is on the top of our spending on exploration and appraisal. We spend around 30% of our budget on exploration and appraisal in Namibia again in 2024 because we continue to see what is the best way to develop. LNG, the other part.

Speaker Change: Not to let these guys taking plenty of plenty of us we both countries participating on getting it done so yeah, so way to control the cost.

Patrick: So, several messages on this slide for 2024. First, the projects. We have quite a big portfolio of four projects, fundamentally in the U.S. and Qatar. In the U.S., actually, Energia Costa Azul is not in the U.S. and Mexico, but it's the gas coming from the U.S. that we valorize.

Speaker Change: Yeah.

Speaker Change: In 24, another comment I want to make this all the new.

Speaker Change: Productions coming on shrimp mirror to draw in Denmark, We develop mountain Dew, Robert we never did for Maersk. It's planned for end of March beginning of April and cool in the U S. Several of.

Speaker Change: It's important comment and we just announced the new production coming in the portfolio of course, we need to close it by end of the first half already guests in Malaysia, we are acquiring Oh I'm sure on the <unk>.

Patrick: This project is progressing well. We should be able to produce it by mid-2025. I think that's more or less the target we have with SAMPRA.

Patrick: For us, it's important, I remind you, because we have access to, we have only 16% of the project, but we have access to almost 55% of the production, 1.7 million tons, very well located to go to Asia. We have Northfield East as well in Qatar and Northfield South, two large projects. It's 2 million tons for the first one, 1.5 billion tons for the second one, for TotalEnergies. They are on their way. No, things have been sanctioned, contractors are mobilized, and then the last one is Rio Grande.

Speaker Change: Phil we have quite a good potential to deploy beyond the asset a lot of valuable opportunities in Malaysia. It's also a way for us to consolidate our partnership with Pitswon us working Val.

Speaker Change: All of these additions, including the ones, which have been put into production in 'twenty free when you look at them, which ends up share on which is a.

Speaker Change: <unk> redo our route Iraq as well when you look to where our cash flow per Boe or they are all accretive compared to poor portfolio and so and it's important they have an average I would say of cash flow per borrower wild foods. He thought up about compare to our portfolio, which is 122. So it's again back to my car.

Patrick: We, I think, selected a good project, South Texas. We are good contractors, Vectel, very committed. We have all the authorizations, so no problem. And so we are moving on. Of course, it's quite a large project, so the target is 27, but it's on its way and even a little ahead compared to the planning curve. Two other important projects on which we work are Mozambique and Malawi. So in Mozambique, we have, I think, security reports and human rights reports.

Speaker Change: But so we continue to win accolades a portfolio and that's very pragmatic, it's truthful acquisition divestment, which we acquired in Sabah Meru in Sakura, but compared to what we divest by the way in Canada make access as part of the borrowers with we produce it was weird.

Speaker Change: The organic part of the portfolio. So that's an important message in particular to point at a time, where in fact, the declining part of our portfolio. For example in the North Sea UK either ruled much. Louis if you talk about because of the taxation. So we are we continue to high grade supports for you for this project.

Speaker Change: Okay.

Patrick: Now, we are remobilizing the contractors, and I think we are not far from having everything set with them. The last part is, you know, we have the large project financing which was... I would say put on the old when the events came.

Speaker Change: Exploration it has been for total energy as a successful story for the last year, we did not mention where Nigeria went good one all Cyprus buys a way where we are confirming with Eni, we have 50% of his discoveries with Eni in Cyprus, we have gasoline cypress for sure. So we will find a way to Agua and <unk>.

Patrick: Thank you. On Papua LNG, we are working as well on the whole French marketing project, which is well perceived in Asia, but also the financing because we need to put the financing in place and the EPC constructs; we work with contractors. So that's ANG, so six projects, I would say, in parallel. A comment on the results that I want just to clarify. I know we had the question marks. You know, 2023 somewhere, we benefited from the fact that we are edging one year in advance on part of our portfolio, except both, except Russia. So this was represented in the $7.3 billion, I think, that was mentioned by Jean-Pierre, $500 million. So these $500 million were exceptional.

Speaker Change: You shouldn't development process, and I think being partner with Eni will just see us some capacities in the neighboring countries a nice way to.

Speaker Change: And I Love. The fact that Eni is keen to go to shorten the time to markets were fully supportive and vet in particular job out in this part of the Mediterranean Sea. Yeah, I insisted I just mentioned second put ourself in cockpit doors, while we're not going backwards.

Speaker Change: Meanwhile, we continue to drill two so mango tea I can tell you is we find against some hydrocarbons in mango tea, we find against the hydrocarbon level of Venus or the extension to the north.

Speaker Change: As it was commented what the mine of my ideas and we shared that that we've all we've all neighboring Pierre are we in the different appraisal wells in the test phase.

Speaker Change: It's clearly not an NCR or generic so it's it's not on Virginia is filled with a lot of hydrocarbons, but we need to be are some sweet spots in terms of productivity permeability they awesome.

Patrick: We could not edge at the same level for 2024. I think he said that, and what we target is $7 billion, I would say, of cash flow from LNG because we have a growth, as we mentioned, 9% in growth production in 2023, so we will benefit from it. So we should be around $7 billion. So we expect a stable, I would say, cash flow coming from LNG. We took an environment for this figure, which is a little lower than in 2023 on TTF, $10, integrated power for 2024. We have already commented on the increase of capacity per gigawatt, the electricity generation, more than 45, and 25 coming from renewables.

Speaker Change: Yes, which have less good characteristics I repeat the ethanol side, we see a foods development really in all and it's no question of optimizing we'll continue to drill.

Speaker Change: Many debates in the company because it really is excited we have a number of exploration potential well on the software Venus called Coca Abboud.

Speaker Change: And we kind of saw continued to appraise with has been discovered so.

Speaker Change: Clearly in IBD.

Speaker Change: Is on the top overall spending in exploration and appraisal will spend around 40% of our budgets exploration appraisal and now you've got again in 'twenty four.

Speaker Change: Because we are they are continue to see what is the best way to develop it.

Speaker Change: LNG view of a thought so a simple message on this slide 24 shows the projects quite a big portfolio of four projects fundamentally in the U S and and Qatar and the U S. In fact, an edge Echostar has nothing to do with Mexico, but its the guests coming from the U S, but we've otherwise.

Patrick: And for the cash flow, we continue with the idea that we should go to reach positive net cash flow by 2028. We need to go by $500 million per year, more or less. So the idea, our objective is to be able to deliver $2.5 to $3 billion out of a portfolio of which will be, by the end of 2041, $25 billion of cash flow, capital employment, $24, $25 billion. So that's continued growth, and all businesses contributing to this increase. Of course, it's important to demonstrate profitability and the 10% for Ache; the ambition is to grow it to 12% by 2020. Just a word about what we are building in Texas. It's one of the announcements that we did during the last quarter. Texas is a very interesting market because it's a growing market, and there are growing populations in Texas. People in the U.S. are moving to Texas, and there are quite a lot of imbalances and bottlenecks in the infrastructures, which create a lot of opportunities for renewables but also for flexible generation.

Speaker Change: This project is progressing well, we should be able to produce by mid 25, I think that's more or less a target we have with sample for us. It's important to remind you because we have access to a web only 16% of that particularly if you have access to almost 55% of the production of one 7 million tonnes very well located to go to Asia.

Speaker Change: We have no field east as well and get her in of itself to large projects. It's 2 million tons for the first one $1 5 billion tons for the Sigma one photos that energies.

Speaker Change: Yeah on this way no zinc saw being sanctions in them.

Speaker Change: Contractors are mobilized and then the last one is Rio Grande.

Speaker Change: We I think select either good project soft ex us we have a good contractor bechtel very committed we have <unk> no problem.

Speaker Change: Temporary ban and so we are moving on of course, it's a quite a large projects. So target is 27, but it's on its way and even a little in advance compared to so planning cost cutting curve.

Speaker Change: Drove a project's importance, which will on which we work is Mozambique. So in Mozambique, we have I think the security reports or the human rights supports nowhere mobilizing contractors and I think we are.

Patrick: In particular, it's quite nice for us because it's during the summer that the spark spread in the U.S. is very positive. In Europe, in our portfolios, gas plants are more active in the winter than in the summer, and it could reach a very high level. So even if the use of these gas plants is maybe only a third of the year, the profit generation can be very high, and we need to have these assets. We've done that in good conditions in terms of accessing $600 million for 1.5 gigawatts. It's really important to have a good price, a direct negotiation with a private equity firm which allows us to have access to these capacities. And it's important because, fundamentally, our customers cooperate with PPA. What they want to have is not only green electricity; they want to build electricity.

Speaker Change: Not far from having a really think set with them. The last part is really nowhere is the large project financing which was.

Speaker Change: I would say are put on the old.

Speaker Change: When the events occur.

Speaker Change: Jim in 'twenty, one and so we need now to ERP activating we've or visa financial institutions around the world. This project financing and when or what would be the we will start again the project on Papua LNG, we are working as well on ores of France marketing.

Speaker Change: Project wishes will perceive in Asia, but also as a financing because we need to put the financing in place and EPC contracts, we work with contractors.

Speaker Change: So that's and N G saw six projects I would say in parallel.

Speaker Change: A comment on the results. So let's I want just to clarify I knew we had the question marks you know 2020 free somewhere we benefited from the fact that we are aging one year in advance part of our portfolio, except both except Russia. So this was replaced represent India.

Patrick: And today, firms, if we don't have firm power, if we don't have in our portfolio some gas plants or flexible assets like batteries, we have also some batteries in Texas. We have already 300 megawatts installed, and we continue to grow it. If we don't have these types of assets, it's difficult to do trading and to make offers that are competitive. So that's the whole objective that we are pursuing, and you will see us continuing to be very active in Texas because it's a good market to develop and deploy our integrated power strategy. On the downstream for 24, uh, we anticipate the markets to be a little lower than 23, 22, 23. And refining has been quite a strong market, supported by the ban on Russian crude and geopolitical tensions. We see some ease in the markets on refining, coming back to something like $50, $60 per tonne, which is still quite high compared to what we experienced in the year 2015 and 2020, but I would say a softer environment in 2024.

Speaker Change: 7.23 billion I think that we have mentioned by jump here a $500 million. So these 500 were exceptional we could not age or the same level for 24 and 'twenty free I think he said that and you know what we target is $7 billion I would say of cash flow format LNG, because we have a better.

Speaker Change: We have a growth of as we mentioned 9% into golf collection in 'twenty free. So we will benefit of it. So we should be around 7 billion. So we expect a stable or I would say our cash Roe coming from LNG.

Speaker Change: We took a number of unmanned for this figure which is a little lower one in 'twenty free on TGF 10 dollar instead of food that's too as an average.

Speaker Change: Yes.

Speaker Change: Integrated power for 'twenty four we commented already the increase of capacity Pristiq. You go what are the efficiency generation more than 45 25 coming from when you weigh bowls and for the cash flow we are well.

Continuing with the idea that we should go to rich so net cash flow positive by 2020, we need to grow by $500 million per year more I saw the Ids a retro objective is to be able to deliver a 2.5 to 3 billion.

Speaker Change: Out of a portfolio of which will be by end of 24 $125 billion of cash for the capital that would probably more of a 'twenty four 'twenty 5 billion. So that's.

Patrick: It's also true in petrochemicals, where clearly there is a lower demand in Europe. We see the impact of the European economic crisis, the macro crisis, and in the U.S. as well. In Asia, it's still good, but that impacts the margins on polymers. We were, I would say, during the first half or first three quarters of the year quite protected because of opposition.

Golf and all our business units contributing to this increase.

Speaker Change: Of course, it's important to demonstrate so profitability and so 10 per central achieved the ambition is to avoid to 12% by 2008.

Speaker Change: Just a word about what we are building in Texas with one of the announcements that we've done during the last quarter.

Speaker Change: He is a very interesting market because the OE markets growing population takes us before the U S are moving to Texas, So and it's a we've quite a lot of imbalances and bottlenecks in the infrastructures, which creates a lot of opportunities for renewables, but also for flexible generation in particular is quite it's quite nice for us because.

Patrick: Now we can see the impact of these lower margins. So that's why the $8 billion of cash flow we had performed in 2003; we think we could be around $7 billion in 2024 as a guide. In refining and chemicals and marketing, because here in Downstream we cover the three segments, we are also working on the transition, in particular in the SAF market. We'll deliver doubled by two our production in 2024. It's in line with what our customers are expecting because the mandates are beginning to grow in some countries, and we don't yet have the big conversion of Grand Prix, which will bring 200,000 tons per year, but we are using And again, that's just a transition.

Speaker Change: It's a it's doing just somehow that's a spark spread in the in the U S is very positive and youre, hoping or portfolios of gas plants are more in the winter buy instead of summer.

Speaker Change: And it could reach very high level, so even as the use of the gas plants is mainly on the T V for their food every year.

Speaker Change: Yes.

Speaker Change: Fifth generation can be very high and we need to have these assets we've done that in good conditions.

Speaker Change: In terms of accessing a 600 million that off of 1.5 Gigawatts is a good price a direct negotiation, we've a private equity firm, which are the west who have access to these capacities and it's important because fundamentally our customers you know.

Patrick: Transition is also, of course, in the marketing part on the electric modulability. We have a strategy, we explained to you in September, to concentrate most of our efforts, I would say, on EV hubs, on case prime locations, on motorways, on urban locations, we have built by the end of 23, 300, 350 hubs, we plan to have more than 600 in 2024. This is also focusing as well on HPC, because the customers, they don't like this low charging, it's maybe good in the streets of London or Paris, but honestly, if you want to really meet the real market for us, is professional customers, or I would say long distance customers, they are ready to spend 15, maybe 25 minutes, but more so HPC, we have deployed already more than 1,000 HPC, and it will be more than 3,000.

Speaker Change: Corporate PPA, where they want to have is not on the green and expect to keep it won't affirming exquisite yet video firm. If we don't have a phone call where if we don't have enough.

Speaker Change: Our portfolio of some gas plants are flexible assets like batteries. We have also some batteries and takes us.

Speaker Change: Already forgot that Mega whats in store, we continue to grow it. If you don't have these type of assets is difficult for two makes wading into bank offers which are competitive so that's the objective.

Speaker Change: But we are pursuing and you will see us.

Speaker Change: Continuing to be very active in the in Texas, because its a good market to to develop to deploy our integrated strategy.

Speaker Change: On the downstream for 'twenty four.

Speaker Change: Uh huh.

Speaker Change: We anticipate the market to be a little lower about 20, if we 'twenty two 'twenty three and refining has been quite to own markets supported by the Baton Rouge includes the geopolitical tensions.

We see some is in the market some refining coming back to something like $50 $60 per ton, which is still quite high compared to what we experience in the <unk>.

Patrick: So rather than the number of charging points, for us, the real metrics are: how many HPCs and electric hubs do we deploy in Europe? That's more, I think it makes more sense than just counting the number of charging points, because the profitability of each of them will not be the same at the end of the day, and in terms of strategy. So that's what I could say.

Speaker Change: Year, 2015, 2020, but probably I would see a softer sofa soft sofa soft softer environment in 'twenty four.

Speaker Change: Also between petrochemicals, where clearly the zanesville roubaix.

Speaker Change: Lower demand in Europe, we see the impact of your European economy classes of macro, causing any of the U S as well so.

Speaker Change: Still good but so that impacts your margins on polymers, we well I would say doing the first are for first three quarter of the year quite preserved because of our position, though we see the impact of these lower margins. So that's why we the 8 billion of cash flow, we add in we performed in.

Patrick: So I'm coming back to our shareholders, which is the most important thing, and cash flow generation. So we anticipate in this environment at $80 Brent, $10 TTF, and $50 European Refining Margin Marker, we could answer some questions about how we move this marker, around $34 billion. It's in line with the $36 we delivered. You do the math with the sensitivity.

Speaker Change: 'twenty free we think will be around 7 billion in 24 hours of guidance into a in refining and chemicals and marketing, which goes a year in downstream at Google as a free segments. We are also working on the transition in particular on the soft market.

Patrick: You are adding an initial growth of $500 in power and $500 in other businesses, and you will find $34. So it's very in line with our, I would say, strategic plan and roadmap. We'll invest $17 billion, so we will have a free cash flow of around $17 billion. And the board, in that context, has decided to continue to grow the dividend by 7%. The final dividend will be 79 cents per share instead of the quarterly interim dividend of 74 cents, and this 79 cents per share will be the next quarterly interim dividend, which the board will support, so that's for the dividend, and so this is what I will come back on in one minute.

Speaker Change: We'll deliver and supply by two of production in 'twenty four is in line, what we've all custom mills I expecting because of mandates begin to go in some countries.

Speaker Change: We don't have yet a big conversion of laundry, which we'd bring to outlet frozen throne per year, but we are using part of each deal you have in <unk> in order to convert it and some soft products to meet some expectations. It's a good business and again, that's a that's a transition transition.

Speaker Change: Also of course in the marketing part on the electric motor the ability we have a strategy we expand during September to concentrate more so no false I would say on EV Oops answer case prime locations over on Motorways on urban locations. We have built by the end of 'twenty three I forgot allergic.

Patrick: And on the buyback, we have announced that we'll maintain $2 billion for the next quarter, and that $2 billion per quarter will remain, which is the basis of the board discussion for the coming quarters and next quarters in this type of environment. And that's, I think, the next slide, which illustrates this, I would say, steady strategy or steady policy, I would say, as a shareholder distribution. We, the quarterly dividend, which was at 66 cents during 2019, 2020, no decrease. 2021, we used our balance sheet. You can see it on the chart in the middle.

Speaker Change: And of those 50 hubs, we plan to have more than 624.

Speaker Change: The vis also focusing as well it is always on HBC because of customers. They don't like these are all solving and or it may be good in the suites of London or Paris, but honestly, if you want to hear the MIT. So your market for US is a proficient old customers. All I would say long discussed system most of the already.

Speaker Change: To spend 15, maybe 25 minutes, but more so HBC. We have deployed are weighted more when one frozen H b C that we'd be more than 3000, so rather than as a number of charging points for us. So we are in midst fixes or many hbc's an electric ups do we deployed in Europe, that's a more I think.

Speaker Change: It would make more sense, but just counting the number of charging points because the profitability of each of them will not be the same at the end of the day and in terms of strategy.

Patrick: The giving ratio went up in 2020 because we decided to use our balance sheet in order to maintain this distribution policy. It has begun to grow in 2022, then 2023, 7%, again, 7% in 2024, so an increase of 20% in the last three years. And that, as you know, we did not decrease this quarterly dividend for 3, 5.8, 5.9% of all. So, for me, it's the basis. As I already said, to return to shareholders, you need to at least increase the dividend by what you bought back.

Speaker Change: So that's what I could say, so I'm coming back to the share to all shareholders, which is the most important and the cash flow generation. So we anticipate in visa unveiled month or at the $80 brand $10 ETF and 50, you'll look.

Speaker Change: Refining margin Marco we could answer some questions what we move is Marco.

Speaker Change: Around 34 billion is in line with the 46, we delivered you make the math which is sensitivity.

Speaker Change: And then it should all go for 500 and power and 500 and <unk> businesses and you will find 44. So it's very in line with all all I would say our strategic plan and roadmap will invest 17 18. So we have a free cash flow of around 17 billion.

Patrick: So the 6% was secure for me just because we had added 1% because there was growth. It was a discussion at the board, but only 7% because we'd made 7% which is consistent with what we could maintain in the long-term. And so that's the last slide, because as I said, you know, we know we have a gap in the multiple with our US peers. But again, in terms of TSR, we are in the ballpark.

Speaker Change: The board in that context, as decided to continue to grow the dividend by 7%.

Speaker Change: Oh.

Speaker Change: He may and as a final dividend will be 79 year old girl.

Speaker Change: Deciding to 79 cents per share instead of so quarterly.

Speaker Change: And were 74 and <unk> 79.

Speaker Change: For sure it will be so next quarterly until he dividend, which the board with the support so that's both the dividend and so.

Speaker Change: I will come back on it in one minute and on the buyback we have announced that we would maintain 2 billion for the next quarter or $2 billion, a quarter, where remains though it is a base of the board discussion for the coming quarters and next quarters and this type of environment.

Patrick: Our ambition is to be able to continue to convince the market that the multiple of TotalEnergies should be higher. And that's why we continue to buy back, despite the fact that the price of 60 euros per share is more or less not far from the historic high. But we strongly believe the strategy will deliver more value, and we have demonstrated that we can do it while transitioning. And again, there is no contradiction.

Speaker Change: And that's I think the next slide which illustrates these I would say steady our strategy all stadia policy I would say as a shareholder distribution.

Speaker Change: We do quarterly dividend, which we're at 66 during 2019 2020, no decrease 2021, we we used our balance sheet you can see it on the chart in the middle of the gearing ratio went up in 2020, because we decided to do we use our balance sheet, we will in order to meet.

Patrick: And so we hope to see that shareholder return translated into the company valuation in the coming months. And the last slide is to celebrate the 100th year, pioneers for 100 years. That's the slogan we have decided, the slogan we have decided to select. I will not comment on all the photos, only one, the first one in the top row, in the... The first well in Iraq. By the way, in Rataoui, I visited Rataoui, and we discovered Rataoui. I discovered it, but Rataoui is back. If you didn't know, it was discovered in 1938 by TotalEnergies teams, and the wealth of discovery exists.

In turn this distribution policy as begin to go in 'twenty two than.

Speaker Change: 23, 7% against 7% of 24, so an increase of 20% in the last three years and that's a as you know we we did not decrease its quarterly dividend for <unk>.

Speaker Change: For more than I was when I became CEO. It was 40 years with today's 40 years.

Speaker Change: And so it's one of the heritage, we maintain and the buyback we are a little stubborn as well we increased to two <unk> since the second quarter of 'twenty. Two so 2222 to two and so you can continue to do too.

Speaker Change: It's we inquisitive last quarter, because we decided to give back part of the Canadian divestment proceeds to the shareholder.

Patrick: Number one, I'll take a photo of it. Not this one in Kirkuk, because it's a little unsafe region today. So my advisor, my security guys, don't go there, but to Rataoui as well, right? So we are back to our roots. The photo in the bottom corner is Arzu in Algeria, part of our history. You have TIRA in Denmark; it's a more recent history. You have LAPA in Brazil, more recent history as well. On the photo over once, the location is in France for two of them.

Speaker Change: Is it sort of exceptional but so it's very it's very consistent by the way a number of shelf diminish.

Speaker Change: I would say as a buyback of shares going in fact, I'll address to them, even if the share is going up.

Speaker Change: And just one comment about the dividend that you Didnt mentioned, 7% you know we bought back in 'twenty 3585, 9% of all.

Speaker Change: Okay over here. So for me, it's a basis as I've always said to return to shareholders, we need to at least increase the dividend by what you bought back. So it was a 6% were for me secure just because we have added 1% because things will go towards a discussion at the board that 7% because we've made seven is consistent with what is called the <unk>.

Patrick: And you also have these small drones with the symbol of the technology that we – the technology-driven company and engineers that we use for measuring methane around all our assets today. So thank you for your attention, and now we can answer your questions, on, Dog. Euron, Irene Himona, Societe Generale.

<unk> maintained on the long term.

Speaker Change: And so that's the last slide because I should say you know we know we have a gap in the multi bore we've all U S peers, but.

Patrick: So, Patrick, you've built the integrated power portfolio through M&A. You've been very active in that. Your targets are for gross capacity. Would you contemplate something a little bit more radical or different, like bringing in a partner, or selling down part of that portfolio, like some of your peers have done?

Speaker Change: Again in terms of yes are we are in the ballpark or ambition is to be able to continue to convince the market that we submit the poorest attention as it should be a year and it's why we continue to buy back. Despite the fact that your share at 16 your per share is more or less not far from being stoic odd, but we strongly believe this strategy will deliver more.

Speaker Change: Value and we demonstrate what we can do it while transitioning and again there is no contradiction.

Patrick: And then secondly, on the buyback, the 2 billion quarterly buyback, your balance sheet is very ungeared now. If the environment were to deteriorate, and we've had tremendous volatility in recent years, how far would you lean into the balance sheet to sustain that buyback? Thank you.

Speaker Change: And so are we where we hope to see that a shareholder he turned to be translated in the companion valuation in the coming months.

Speaker Change: And the last side is to say that probably the one is yes pioneers for 100 years, but this logo with the slogan we have decided motto we have decided to select.

Patrick: Okay, first question. We do it. In fact, we don't have one partner, but because it's not some, but each asset, the policy is clear. We develop the assets when we are the operator 100%, but at COD, we divert 50% of them because I prefer it's a question of risk management. I prefer to have two times 50%, but one time 100%. It's also a question of profitability. What is difficult is to find one partner for all the geographies.

Speaker Change: I will not comment or photo only ones. The first one in the top in the.

Speaker Change: Lythgoe left top corner is the first well in Iraq.

Speaker Change: By the way in auto we I visit are hot that we and we discovered that we had discovered but hard to ease back have you didn't know it was discovered in 1948 by us by total energy teams and that is the worst of discovery exist.

Speaker Change: Number one I would take the photo on it not this one in kirkuk because its a little unsafe today saw us for my adviser My security guys, probably don't go away, but you know I think we have a right. So we are back to our roots so photo in the.

Patrick: You have some people who are financial partners because we don't want to have too many people bothering our teams. We like to have financial partners. They love it.

Speaker Change: Left.

Bottom corner is alu in Algeria, a part of our history, you have Gerard and that market is more of a sense as to what you have left behind Brazil mortgage centers. So he is well on the photo of yoga once location.

Patrick: But it's not the same market when you are diversifying 50% of an asset in Texas than when you go to Greece. So it's a different portfolio. Even if we reach a point where we increase the capacity by 6 gigawatts, we have more gigawatts to farm down. So we will need to find a way to industrialize, I would say, the way we farm down. But it's not an easy task, you know, if you go asset by asset. So for example, in 24, I think we have 2 gigawatts, something like that in new assets, or 1.2 gigawatts in Texas.

Speaker Change: Is in France for two of them and you have also gives us more towards with his symbol of the technology, but we are of the technology driven company and engineers, which we used for measuring methane or an auto assets today.

Speaker Change: Well. Thank you for your attention I know, we can answer to your question.

Speaker Change: Bonds to stop.

Speaker Change: Kieran.

Speaker Change: Thank you very much.

Speaker Change: And as I said those are out.

Patrick: Patrick you've built.

Patrick: The integrated power portfolio through M&A, you've been very active on that your targets are for gross capacity and would you contemplate something a little bit more radical or different like bringing in a partner selling down how does that portfolio like some of your peers have done and.

Patrick: So we'll make a package and find, and by the way, it's better to farm down, because then you have larger institutions which are interested. When it's one asset, sometimes it's more, they don't want to spend too much time. So we try to do it like that. We have some assets as well. Greece is a different country, but we negate it from Total Iran or South Iberia.

Patrick: And then secondly on the buyback and the 2 billion quarterly buyback.

Patrick: Your balance sheet is today and get now if the environment were to deteriorate and you know we've had tremendous volatility in recent years, how far would you lean into the balance sheet too.

Patrick: So we need to be active in that and find a way to industrialize it. It's not just one partner, but again, that's very good. I prefer to have some partners as well, in order to challenge us tomorrow in the way we do, it's the same, I would say, philosophy that we had. You know, we've done one divestment, we announced on Sea Green, in offshore wind in Scotland, where PTTEP wanted to have experience in offshore wind, they like total energies. We've seen, I can tell you, if you calculate the rate of return on the M&A activity, acquiring this 25% from SSE in 2020 and selling it in 2023 to PTTEP is more than 15% return. So you can do this type of activity.

Patrick: Staying that buyback thank you.

Speaker Change: Okay. First question, we do it in fact, I, we don't have one partner, but because it is not a.

Speaker Change: But each assets of policy is clear we develop the assets. When we are operator wanted percent, but its U D. We divest 50% of them because I prefer it's a question of management of risk.

Speaker Change: I prefer to have two <unk>.

Speaker Change: <unk>, 50%, but one time wanted to percent is also a question of profitability. What is difficult is to find the one partner for all of the geographies. You know you have some people well financial partners, because we don't want to have too much people booger wrinkle keeps you know we like to have financial partners. They love it.

Speaker Change: But it's not the same market. When you are divesting a 50% of an asset in texts asthma. When you go to Greece, or so is different portfolio, even if we reach a point where as we increase the group.

Patrick: It's good because we don't want to be just. We want to share the risk between different assets, and we'll continue that philosophy. It's a very good question.

Capacity by six Gigawatts, we have more gigawatts to two farmed down so we will need to find a way to induce the lies I would say the way we farmed out so the white is quite good but is not an easy task you know if you go asset by asset. So for example in 'twenty four I think we have two gigawatts something like that the new our new assets of one point or two to get wet in Texas. So we.

Patrick: I think my message was positive. I think we have a good balance. The slide is for purpose.

Patrick: The slide that I'm showing you about the dividends, the gearing, and it's true that at 5% gearing, as we did in 2020, the situation was much more critical in 2020 than today at 5% gearing. And when I mentioned that we announced $2 billion for the next quarter, but $2 billion is the basis for the coming quarters, I think it's also because I have in mind that we can use the balance sheet. And unless the price goes down again to something less than $50, we can't resist.

Two package and find the and by the way it's better to farm down. Because then you have larger institutions, we tried to actually when it's one I said some time, it's more of a I don't want to spend too much time. So we tried to do it like that we have some assets as well as a different country, but to be negative for them to tell Iran or in and suffer I believe so.

Speaker Change: We need to be active on that and to find a way to industrialize it except one partner, but again, that's very good I prefer to have some partners as well.

Patrick: So that's true. But for me, it was a discussion at the board, so we found in the press release a positive message that we don't want to commit about $20 billion to a buyback because we have no visibility. But fundamentally, the balance sheet gives us quite strong support for this policy, and the important word is that it's a steady policy, either on the dividends, 7%, 7%, or on the buyback. And so you could hear 2, 2, 2 for several quarters. You can go to this table as well. Thank you very much, everyone. Oswald Clint at Bernstein.

Speaker Change: <unk> tomorrow, either way, we is the same I would say philosophy, but where do you know we've done one divestments, we announce in on Syrian in offshore wind in Scotland, where PTT EP wants you to have experience in offshore wind they like totally energies, we you see and I can tell you the.

Speaker Change: You should make the rate of return M&A activity acquiring visa <unk> 25 per cent for me says she in 'twenty 'twenty and sitting in 2020 feet to PTT P is more than 50% of it too.

Speaker Change: So you can make these type of it's good because we don't want to be just.

Patrick: I wanted to ask about LNG, and I wanted to ask about appetite for your portfolio from New Demand, from Biden's policy recently, from the Red Sea disruption? I think you answered that already by saying China, having some discussions with you, etc. So, perhaps I'll change it to, are you really leveraging, and I know Stefan is behind me, but leveraging the LNG trading and optimization piece? Shep, a couple of your peers this last quarter here in Europe, even in Texas, are now delivering gas and LNG trading profits on top. It doesn't look like you captured a lot.

Speaker Change: We want to share some of his between different assets and we'll continue with philosophy.

Speaker Change: Yes.

Speaker Change: It's a very good question I think my message was positive I think we have a goodbye and there was a slide just for purposes of slides by tissue you about the dividends of gearing and the true with its 5%, giving as we've done in 2000 Twenty's institution was much more critical in 2020 and today it's five.

Speaker Change: Per cent gear Angen when they made sure that we are we announced 2 billion for the next quarter, but we are to be used as a basis for the coming quarters. I think it's also because they have in mind, but we can use our balance sheet and unless the price going down again through some peak last and that's about 50 dollar we cannot resist over a true width.

Patrick: It looks like the others are a bit more aggressive, potentially a lot more capital, financing is being allocated to trading, and it's coming through. So perhaps your business is more tightly controlled. It's just to get your thoughts on this, are you happy with that? Is there more you could do around the L&D optimization piece, please? I'm very happy with what we do. And by the way, maybe when you look to see if this quarter is better, the previous quarter was not so good.

Speaker Change: For me.

Speaker Change: Whereas a discussion at the board so we find it in the press release, though he's a positive message but.

Speaker Change: We don't want to commit about $20 billion buyback, because we have no visibility, but fundamentally as a balance sheet give us quite a strong support to this policy and to be the way.

Speaker Change: The important words is a steady policy you know and I will on the dividend, 7%, 7% all on the buyback and so.

Patrick: So we are more consistent in the trading part, quarterly after quarterly. We know our policy and Stéphane Calabrois, but we have no, we are, honestly, I think we are doing a lot with that. We are managing 40 million tons.

Speaker Change: Yeah, two two for several quarters.

Speaker Change: You can go to the table as well.

Speaker Change: Gentleman here.

Speaker Change: Thank you very much everyone Oswald Clint at Bernstein, I wanted to ask on LNG and I wanted to ask about appetite.

Patrick: So of course, part of it is the number of spot deals which have been done around 6 million tons. So again, it's quite active, and our traders are doing a lot around it. But I will deliver your message that they can do better. When I see their bonuses, I think they have done well.

Oswald Clint: And to your portfolio from from new demand from Bidens policy recently from the Red Sea disrupts I think he answered that already I think China is.

Oswald Clint: As having some discussions with your et cetera, So perhaps I'll change at.

Oswald Clint: Are you I mean really leveraging and I know Stefan is behind me, but leveraging the LNG trading and optimization piece I mean shall couple of your peers. This last quarter.

Patrick: You can ask Jean-Pierre what he thinks about that. No, I think honestly, no, we are not more; we are very active in that. It's completely in the business model of LNG trading. Again, we have benefited from the fact we have this policy to edge most of the portfolio one year in advance. It's true.

Oswald Clint: Here in Europe, even in Texas are now delivering gas and LNG trading profits on top it doesn't look like you've <unk>.

<unk> heard a lot of it looks like the others are a.

Oswald Clint: Bit more aggressive potentially a lot more capital financing is being allocated to trading and it's coming through so perhaps your business is more tightly controlled it's just to get your thoughts on.

Patrick: But because we have quite an open position, and I think it's... So we have benefited from that. Next year, 7 billion.

Are you happy with that is there more you could do.

Patrick: Again, I think one message of this size, by the way, when you look at the improvement of what we were delivering in 21 to 23, it's quite a big improvement and it comes fundamentally from the European position. In Europe, we have access, we control 16% of reserved capacities, and we have added these two FSIUs. So it helps us to trade around that. And maybe we make less noise when we have a good result. But we didn't have any bad results in the quarter, so I'm fine; we are fine.

Oswald Clint: Around the LNG optimization piece place, so I'm very happy with what we do and by the way maybe a when you look to our peers. This quarter was better than previous quarter was not so good choice. We are more consistent in the trading part quarterly after quarterly.

We know our policy and see if I'm right, but we are nowhere. We are honestly I think we are doing a lot with that is at the core of U B S.

Oswald Clint: We are managing 40 million tons of course part of it in.

Oswald Clint: The number of spot deals, which have been done advanced 6 billion tons. So again, it's quite active and our traders are doing a lot around it so.

Patrick: Thank you, and maybe my second question is just on Iraq, 100 years. When you spoke about your new Iraqi project there, did you say it's also a $30 per barrel cash margin? It's much more than that, and really, the bigger question was... My favorite chart is the one on cash flow relative to the oil price. Is there anything, as we look out for the next five years, that would be decreasing the slope of that with production sharing contracts, or slopes in LNG contracts? It's a good question.

Oswald Clint: But I will deliver the message that they can do better.

Oswald Clint: Uh huh.

When I see that bonus I think they have done well [laughter] kind of asked was off yeah. What he thinks about it but no I think honestly you know we all know we are not more we are very active on that is completely in the in the in the business model of LNG trading.

Again, we benefited from the fact, we have this policy to edge most of the portfolio one year in advance it's true so, but because we have quite an open position that I think it's so.

Patrick: We have done it over the last two years. We can project it. I think it's a good idea... Olivier, who is behind the door here, is an expert at making this type of chart. He's a super good economist and engineer.

Oswald Clint: So we benefited from that in 'twenty.

Our next year and beyond again, I think when message of the sides by the way when you look to the improvement of what we were delivering in 'twenty one to 'twenty free it's quite a big improvement in its coming fundamentally in particular of the European position.

Patrick: No, no, but I take the point, but we can demonstrate that in the portfolio. Fundamentally, our new portfolio is much more accretive to develop, because we look at projects and we select the projects to find this, I would say, to improve not only... We have to see, as I said, as a resilient company, we want to have also the upside. Iraq is one of them, by the way. We have quite a good upside, but I take the point, and we can illustrate that maybe in our next strategy for September. We had that slide. It was too complex last time, so... to the music. So Michele, please.

Oswald Clint: Europe, we have access we control a 16% of re gas capacity. We have added these two fsrus.

Oswald Clint: As to trade around but so maybe we make less noise wouldn't be a a good results, but we don't have any batteries dosing quota.

Oswald Clint: So I'm fine we're fine.

Speaker Change: Thank you and maybe my second question is just on IraQ100 years.

Speaker Change: When you spoke about your new Iraqi project. There did you say, it's also a $30 per barrel cash margin, it's much more of a bet okay.

Speaker Change: Really the bigger question was that my favorite chart is the one on cash flow relative to the oil price.

Speaker Change: Is there anything as we look out for the next five years that would be decreasing the slope of that with production sharing contracts slopes in LNG contracts. So it's a good question we have done it in the last two years, we can project it and I think it's a good will leave here, which is behind the doorbell is the spirit of making these type of charts is to be a good economic <unk>.

Patrick: Thank you. Congratulations on the strong result and being almost net debt free. I wanted to ask two questions. The first one is more industry-wide. We are getting a lot of very conflicting messages on EV uptake across the world. On the one hand, it seems to be accelerating in China, but then it's decelerating in Europe and in the US as some of the more generous incentives roll off. What what are you seeing on the ground?

No, but I think the point that we can demonstrate that on the portfolio fundamentally is on your portfolio is much more accretive.

Patrick: And does that in any way change your strategy in terms of EV charging? And then secondly, I wanted to ask you on LNG. You clearly hedge 12 months forward your spot LNG exposure. But I was wondering, is there a way to quantify the sensitivity to spot LNG prices beyond that 12 months of hedging? Thank you.

Speaker Change: Because we we look to projects and we said exit projects to find these I would say to improve not only are we were happy to see that as I said is a resilient company. We want to have also the upside and the Iraqis one of them by the way, but we have quite a good upside, but I think is appointed we can interest rates, but maybe you know September Nick strategy.

Speaker Change: We advert slides was too complex last time, so we need to to prepare it and a bit away, but this one I think that the PFS, which has been.

Patrick: What is important in our portfolio is the difference between TTF and... GKM, I think you can elaborate on that, Stéphane. The second question, maybe you can answer, on the first one. That's one of the unknowns. But we know, in fact, our strategy is centered on Europe. VEU, which has a clear plan, 2035, and in VEU, it's fundamentally the five, the core of the countries, France, Germany, the Netherlands, the UK, Spain. In the U.S., I agree, but when you go to the U.S., you don't see a big move. And when you look on the streets, you don't see a huge movement.

Imagine by a colleague as he is a good illustration, but these channel through which means the higher ups.

Speaker Change: Besides that we capture from the Brent.

Speaker Change: Can go and.

Kelly: Kelly please.

Kelly: Yeah.

Thank you congratulations on the strong result in being almost net debt free and I wanted to ask two questions. The first one is more industry wide. We are getting a lot of very conflicting messages on EV uptake across the award on one side it seems to be accelerating in China, but then it's <unk>.

Kelly: L a rating in Europe and in the U S. As some of the more generous incentives going off what what are you seeing on the ground and does that in any way change your strategy in terms of EV.

Patrick: So I'm more, we are more careful. So we are more on the EV strategies, more Europe, where there is a clear regulatory plan, where we think that it will happen. Maybe not as quick as before, but as the government seems to be, even if they have less money, but they will be obliged.

Kelly: EV charging.

Kelly: And then secondly, I wanted to ask you on LNG you can.

Kelly: Clearly hedge 12 mindful would your spot LNG exposure, but it was wondering is there any way to quantify the CCTV to spot LNG prices beyond that 12 month of hedging.

Patrick: In the end, maybe, not my problem, it's more the one of the car manufacturers, maybe we'll be plenty of Chinese EV cars on the streets in Europe, that's the trend today, but it's not my issue to me. So for us, EV equals Europe, where we have a clear. I would say without regulations, without, I think, honestly, this transition is not only a question of offer. If you don't have an incentive for demand and a clear... I would say policy makers, policy, a low chance that people will accept it, you know, it's a revolution; it's the French revolution.

What is important in our portfolio is the difference between T. T F N.

Speaker Change: <unk> I think you can elaborate on what's defined as a second question, maybe you can answer too.

Speaker Change:

Speaker Change: On the first one.

Speaker Change: Yeah.

Speaker Change: That's one of the unknown, but.

Speaker Change: But we know in fact, our strategy is.

Speaker Change: Centered on Europe.

Speaker Change: <unk>, which has a clear plan 2035 and in the U S fundamentally.

Speaker Change: Five to cool the countries of France, Germany did that answer your key state I mean.

Speaker Change: In the U S I agree, but when you go to the U S. You don't see a big move when you observe in the sweets and don't see a huge move.

Patrick: You ask people to spend more money to get a car to have the same function as an IC car. Why should they spend more money? Tell me.

Speaker Change: So a more we are more careful so we are more on the EV strategies more Europe, where there is a clear regulation plan, where we think that it will happen may be not as quick as people are but and as the government seems to be even if they have less money, but it would be obliged.

Patrick: So we have to lower, they have to lower the cost of the cars, and somewhere to be supported. So we've got policies, so are you all right? China is good, but China is using its own market in order to, but it's again more for the car manufacturing industry, the challenge to bring all these cars to deploy their manufacturing capacities on the planet.

Speaker Change: And maybe that's my problem I suppose the one of the car manufacturer is maybe it will be plenty of Chinese EV cars into suites in Europe, but the trend today, but it's not my issue to be so for us E V equals Europe, where we have a clear.

Patrick: It's what is happening, in particular in Europe. So for us, does it change? No, fundamentally, but we will not deploy EV in Africa. You know, where we have retail today, it's Africa.

Speaker Change: I would say, we've always regulations without I think honestly. This transition is not only a question of Ophir. If you don't have an incentive of the demand of nuclear.

Speaker Change: I would say our.

Speaker Change: Policy makers 40 C <unk>.

Speaker Change: <unk> chance that people will accept.

Patrick: I will continue to develop our traditional business in Africa, and I hope you will see that change even if we are happy with the position in France. Again, as I commented, we sold our water station in Germany and the Netherlands to Gustave because the financial proposal was, for us, quite a good one, so we had to change in a way. In terms of CapEx, it's a matter today of $150-$200 million per year. So it's not a huge commitment compared to what. Europe, yes, the rest I will observe, to go in your way. And what I'm observing is again, let's see, depending on the policies, and particularly in the U.S., I have a few doubts. Okay, another one. Stéphane should answer. Sorry, Stéphane, please.

Speaker Change: What are you sort of just kind of revolution, you ask people to spend more money to get together to have the same function better.

Speaker Change: IC Kal why you would say you spend more money.

So we have to lower the absolute cost of gas and somewhere be supported so we've only policy. So you're right China is a good but China is using that one market and another two.

Speaker Change: But it's again more for car manufacturing industries are challenged to be to bring all this gas to to deploy via manufacturing capacities on the planet.

Speaker Change: What is happening in particular in Europe, so for us that he charge no fundamentally, but we will not deploy EV in Africa, you know, where we have retail today, It's Africa.

Speaker Change: I will continue to continue to develop all I would say traditional or business in Africa.

Speaker Change: Hope you will see by chance.

Patrick: Yeah, now, on your question, so our L&G portfolio is a global mix of long-term supply coming from our assets of third-party and of long-term sales, mostly in Asia. So if we look at that, we purchase fixed costs and then re-up, and we sell mostly Brent and TTF GKM. And as we mentioned in the past, globally, our portfolio is around 70-80% more long-term Brent, and the rest is TTF GJKM. By the way, as we do in electricity, we try to find a 70% long-term fix, 30% merchant. And the last point which is important is the fact that we can sell either GKM or TTF and because we have the flexibility to choose our index because of the supply logistic chain that we have with the regas capacity and the vessels. So we are betrayed between both. So we are betrayed between both. Energy tankers. Martijn Goethe, Good morning.

Speaker Change: And if we are happy with our position in France again as I commented you know we sold all retail decision in Germany, and the Netherlands, who pushed out because of the.

Speaker Change: The financial proposal was for us quite a good one so we had to you know way to change.

Speaker Change: In terms of Capex, its a matter today of $150 million to $100 million per year. So it's not a huge commitment compared to what we spent so so you hope yes, Celeste I would also just to go enjoy it.

Speaker Change: And what I'm observing is again, let's see.

Speaker Change: Depending on the policies and particular in the U S. A F shoot up.

Speaker Change: Okay. Another one.

Speaker Change: Yeah.

Speaker Change: Most defense would answer I'm, sorry, you said it yeah.

Speaker Change: I'm sorry.

Speaker Change: Yeah no on your on your question, so Oh, well the LNG portfolio, we feel very unique still for long term supply coming from my law States offer party under long term sales mostly in Asia.

Speaker Change: We look at that.

Speaker Change: Bill Chase.

Speaker Change: Ghost and then rehab and we sell mostly Brent and GTH GK.

Speaker Change: And as we mentioned who redeemed ziv best globally, our portfolio is around 78% more long term Brent on the risk either.

Patrick: Two questions, if I may. First of all, a slightly technical modeling question, but in terms of modeling the balance sheets for the next couple of quarters, I was wondering if you could say a few words about how much of the working capital that was sort of released in the fourth quarter will build up over the next couple of quarters. I think you said that some of it was sort of a bit of a one-off. And then, secondly, I wanted to ask about refining, because I get the sort of $50 to $60 a ton sort of base case, but I was wondering what your views were about sort of the risks around that, in the sense that if you do a global refining analysis, you come to the conclusion like, well, you know.

Speaker Change: If your game.

Speaker Change: By the way, we're doing it a twisted tea will which way to play that say the GPL centered on film peaks of 30%.

Speaker Change: And the last point, which is important is the fact that the weekend said is EOG game or TTS.

Speaker Change: And because we have this and we have the flexibility to choose their will index because it was a huge supply logistics chain that we have with the regas Gibbons.

And under visits.

Speaker Change: So we arbitrate between both we arbitrate between LNG tankers.

Speaker Change: Matson grid.

Speaker Change: Yes. Good morning, two questions. If I may 1st of all it's slightly technical modeling question, but in terms of modeling the balance sheet for the next couple of quarters. I was wondering if you could say a few words about how much of the working capital that was set up.

Patrick: The market should soften a little bit, but then again, all the capacity that is being built is in the East, so the Atlantic Basin is actually quite short of products, and we have all the freight issues, and the freight issues support the Atlantic Basin refining margins. We stumble from disruption to disruption, all these refineries are old, it's cold weather, we have disruptions, it's hot weather, we have disruptions. Couldn' No, you are right to separate them, having said that... And it's good. We took an assumption of $50 per ton. If it's 80 degrees, I'm happy. You have the sensitivity.

Speaker Change: Released in the fourth quarter, we will build up over the next couple of quarters. I think you said that some of it was sort of a bit of a one off and then and then secondly, I wanted to ask about refining and because I get that sort of 50 to $60 a ton sort of base case, but I was wondering what your views were about sort of the risks around that in a sense that if you do global refining analysis you.

Speaker Change: Got to the conclusion Mcmahon you know.

Speaker Change: Market softened a little bit, but then again on the other end so like all the capacity that's being built is it east sell the Atlantic Basin is actually quite short product we have.

Speaker Change: The freight issues and the freight issue support the Atlantic base refining margins, we stumble from disruption to disruption. All these refineries are old it's cold weather, we have disruptions as hoped whether we have disruptions.

Speaker Change: Could we end up in a situation, where actually just turns out to be surprisingly tight and.

Speaker Change: The risks to that or actually two.

The upside.

Patrick: I think it's $500 billion for $10 per ton. So again, maybe we are a little cautious. We see some softening in the market because, again, the crude price remains high. But you're right. Your fundamental analysis is true that in the Atlantic basin, you have some bottlenecks in the system. The famous Jones Act, in particular, and all these types of things which help the margins.

Speaker Change: Oh, you are right to separate booth.

Speaker Change: Said that.

Speaker Change: And it's good if we have a we took an assumption of $50 per ton, if you'd say T. M. P. How're you know them.

Speaker Change: Do you have a sensitivity I think it's four or five hours <unk>, five and it'll be a bit off a $10 per ton. So again, maybe we are a little cautious we see some softening in the market because again the price crude price human eye, but you're right. You are fundamental in areas you see true, but on the Atlantic Basin, you have some bottlenecks in the system. So famous.

Patrick: But there is also an element of the Russian system, you know, in that the market begins to absorb it at a certain point. So we have to be a little, a little cautious about it. But that's what we observe.

Speaker Change: John sack in particular, and all these type of things, which helps the margins.

Speaker Change: But there is also an element of the reservation system, you know invert, which begins a market begins to absorb it at a certain point. So we have to be a little maybe you would enter cautious about it but that's what we observe.

Patrick: So I share your view, but up to which point can we quantify the upside? That's more complex. That's the difficulty; it's the margins of different products.

Speaker Change: So for them <unk>.

Share your view, but up to which point can we quantify the upside that's more complex and now that said the difficulty it's margins of different products. So and again the last year also supported by the fact that so jet fuel recovery was so jet fuel margins were quite good. So visit full recovery is down now.

Patrick: And again the last few also supported by the fact that the jet fuel recovery was, the jet fuel margins were quite good so this jet fuel recovery is down now. So we are more in I would say a balanced and normal growth, there is not this hike linked to the recovery that we had before, on the working capital, I would say 3 billion, something like that, I think, because honestly, I will tell you, the story is the following, we had, last year we had a release of 3 billion because of margin calls, we were expecting to see the 3 billion being recovered, we struggled during the year to see them, they came the last quarter, we had more than that, the last quarter was a bit around, globally 5 billion, but out of the 5, 2 are clearly expected, link to the taxation we should pay on these Kushtar deals, capital gain tax that we didn't pay, we need to pay it, and it's linked to part of the, you know, these exceptional taxes that which we have put in Europe on refining. The Epoch Times.

Speaker Change: So we are moving our I would say our balance and normal growth Nazis Ike linked to the recovery that we had before.

Speaker Change:

Speaker Change: On the working capital what I would say 3 billion, though.

Speaker Change: Something like that I think are.

Speaker Change: Because it is the I would tell you. The story is the following we had the last year, we had oh he needs a 3 billion because of margin calls. So we were expecting to see the Freebsd recovered we slugger joins a year to see them. They came to the last quarter, we had more than one quarter was would be around the liberty of 5 billion, but out of the five to Australia.

Speaker Change: Exceptional it's linked to the taxi should we should pay on visa pushed out deals if those capital gains taxes and they didn't pay we need to pay it and it's linked to part of the.

Speaker Change: Exceptional taxis, but which we have put in Europe on refining.

Speaker Change: If you could know visa.

Patrick: And of course, we continue to put pressure on our manager to maintain the working cap as low as possible. The story is that we told them we wanted to come back, you want us to give us back our 3 billion. They gave us 5, so I'm on 6, so I don't want to put too much pressure on myself, you know, so that's good. No, but it's, so there is a little exceptional there, but 2 billion, which makes one point of giving, I would say.

Speaker Change: The war taxes, which has built a taxation, which will be paid in fact in 'twenty four throughout two 2 billion a big stop working capital I don't consider them as such.

Speaker Change: If he billion game and go back and forth. So we could expect them to be it is again doing as of year end coming back by the end of the year.

That's the anticipation and of course, we continue to put pressure on the on our manager to working.

Speaker Change: Working capital as little as possible because the way.

Speaker Change: The other thing we want to we want to come back you want to give us back off the bigger they gave us five so almost six AMA.

Patrick: If you want to translate it, compared to what you said, we have two billion which came at the end of the year, which could disappear. But I hope the year can also be executed in a good way and we'll have, again, some cash flow which will come through it to strengthen the balance. You can go there, Lucas.

Speaker Change: Not to put too much question on you know so that's good now, but it's so visa literal exceptional about 2 billion.

Speaker Change: Okay.

Speaker Change: Makes a one point of giving.

Speaker Change: I would say you want to translate it in compared to what you said, we have 2 billion, which came at the end of the year, which could disappear, but I hope you have a year can also be executed in a good way and we love again from a cash flow, which will contributes with strengthening the balance sheet.

Patrick: Thanks very much, Lucas Herrmann, BNP, Exxon, two questions, if I could ask you two, the first was just on divestments and whether you've got, last year was a very large year for divestments. There's a lot going on in the business in terms of organic investment now as you build up in LNG, you start to build more aggressively, high-grading the upstream, obviously integrated power. So I just wondered, you know, what you're thinking in terms of the scale of divestments this year, you know, the absolute figures as you move towards that net $17 to $18 billion. And the second question, Patrick, is a little more personal.

Speaker Change: We can go that Lucas.

Lucas: Alright, thanks, very much Lucas Herrmann BNP exane.

Speaker Change: Two if I might as well.

Lucas Herrmann: The first was just on divestments and whether you've got any.

Lucas Herrmann: Last year was a very large year for divestments, there's a lot going on in the business in terms of organic investment now as you build up in LNG started to build more aggressively in high grading the upstream obviously integrated power. So I just wonder.

Lucas Herrmann: What's your thinking in terms of scale of divestments. This year, yeah absolute figure as you move towards that in that $17 billion to $18 billion and the second question Patrick I guess, there's a little more personal it's a it's a big if the centenary tighter child. It's also quite a big year for you in some respects and that this is the a 10.

Patrick: It's a big year for Centenary, the total number. It's also quite a big year for you in some respects, in that this is year 10. And I'm conscious of, you know, amongst all the assets this company has, you're also a very large asset. The question is really, you know, how you're thinking about your own lifecycle progression. I know Thierry Desmarais was CEO for 12 years. We hope you're with us for a lot longer, but just thoughts on where you're at, Patrick. Thierry was 15 years old.

Lucas Herrmann: And I'm conscious of amongst all the assets et cetera. This company has you're also very large asset.

Lucas Herrmann: The question is really you know how youre thinking about your own life cycle progression I know theory, the mras with C O two.

Lucas Herrmann: <unk> is.

Lucas Herrmann: We hope it with us for a lot longer, but just thoughts on where your rats Patrick in theory.

Patrick: I thought it was 12 CEOs and 15 chairmen. Yeah, but you know, on a personal note, I said to the board, as long as they are fun, I will continue the job as long as you consider that I'm positive for the company. The board has decided to ask me to continue to renew my mandate, which was announced in September for the next three years. So I will continue. And again, I think I'm committed to the company. I think what we do is we have a very clear strategy, and I'm happy to execute it.

Lucas Herrmann: Terry was 15 years.

Lucas Herrmann: So it was 12 C O and 15 chairman.

Lucas Herrmann: But to know on all of these vessels are no what I said to the board as long as they affirmed our continues a job as far as long as you consider with that.

Speaker Change: Was it for the company. The board has decided to ask me to continue to reuse or my mandate. It has been announced in September for next three years. So I will continue in the again I think I'm committed to the company and I think what we do is we have a very clear strategy I'm happy to execute it and part of these are certainly.

Patrick: I'm part of this. It's not only me but the entire executive committee which is executing this. So I'm there.

Speaker Change: Me, but all the executive committee, which is executing vegetable.

Speaker Change: And there will continue to be in the landscape of this company for many years.

Patrick: I will continue to be in the landscape of this company for many years. Okay, but we still have a lot of things to talk about, on the first one. In fact, we've done a lot in terms of divestment. That's true. $4 billion, $4.5 billion from Canada, Kushtar, $7 billion. But we acquired a lot as well. You should note it was a huge year, in fact, because of Sarmoom Lulu and Scalas Los Ventos.

Speaker Change: Okay.

Speaker Change: But we still have a lot of things to do.

Speaker Change: Then.

Speaker Change: On the first one in fact, we've done a lot in divestments that true 4 billion four 5 billion from Canada, Gustaf 7 billion, but we have quite a lot as well aren't you should not it was a huge year in fact, because some blue Bloods Cisco's I suppose then towards Bruce when you add in if he NFS when you add all of that we divest.

Patrick: When you add NFE, NFS, when you add all of that, we divested $7 billion; we added $6 billion. I said to my teams, we have done a lot. In fact, we invested $17 billion. And when you acquire six and you divest seven, in the end, we move $30 billion of assets, which is a historic year. And so it's quite an active company; it's very active. And I think we will continue to do that. Because if I want to upgrade, I also need to finance it.

Speaker Change: It's 7 billion, we at six I said to my team should we you don't see it we have done a lot of in fact, we invested 17 and when you acquire seeks and you would divest seven it's at the end, we we moved $30 billion of assets, which is this two week, yeah and so it's quite an active company is very active and I think we will continue to do that because.

Speaker Change: If I want to I read I need also to finance it.

Speaker Change: And then a mistake as country I think one of the my Big lesson is then.

Patrick: And I think one of my big lessons is the net capex investment, maximum 18 is a good metric for us. It's a good metric because you see all the balance we generate, 34, we invest 17, we deliver 16, 12, and it's surely a good balance. And so one way is to continue to divest. Divestment will become part of it, by the way, from what was discussed about the farm down of renewables, because we, it's not a divestment, it's more we divest because we reinvest part of it. So, you know, when we have, at the end, 5 billion, it's, in fact, plus seven, minus two, etc. So we have to, this machine of divestments has to be put in place. And that's one of the targets for Stefan Thiem's end of the year.

Speaker Change: The net Capex investment maximum eighteens is a good metric for us is a good metric because he sees about it all the balance we generate 50 food. We invest 17, we delivered $60 will shortly it's a good balance and so one ways to continue to divest divestments will come part of it by the way from what discuss about the farm down of renewable.

Speaker Change: Because we it's not the divestments is more we divest because we reinvest part of it. So you know when we have it at <unk> 5 billion. It's in fact, it's plus seven minus two weeks with us. So we have to this machine of divestments has to be put in place and that's one of the target for Stefan teams and are in the year.

Patrick: But we also have some assets in the extreme, but it's no secret that in Nigeria, for example, these onshore assets are complex. We want to divest our share of FPDC, and we are looking to reshape the portfolio. So it's a permanent, for me, good philosophy to oblige ourselves. We buy in Malaysia; what do we divest on the other side?

Speaker Change: But we have also some assets India trim.

Speaker Change: It's no secret that our in Nigeria. For example are these onshore assets are complex, we want to divest or shale with PTC and we are looking to reshape the portfolio. So it's a permanent for me good philosophy to oblige ourself, we bought in Malaysia, where do we divest on the other side by the way in you'll notice that in <unk>.

Patrick: By the way, you notice that in 2024, we'll benefit from the divestment to Kushtar, to the Netherlands and Belgium, because we didn't sell it in 2023. So I think we are fine, and the level of activity should be around about five billion on one side, five billion on the other. And I think it's part of the strategy to also benefit from it, and we have the balance sheet to do that. Not to make big M&A, I don't, I'm not a consolidator of Shell in the U.S., I'm not there, so I can perfectly understand what OT or peers have done, but we are not in that business. But we can; we have the balance sheet in order to be. I would say to be active on both sides, but selling and diverting. Uh... That's what I would say. Good. Lydia

Speaker Change: Before we will benefit from the divestment to pushed out to the Netherlands, and Belgium, because we didn't set it in 'twenty three 'twenty four so I think we are fine and the level of activity should be around about 5 billion to one side 5 billion on the other side when I think too and I think it's part of the strategy is also to benefit from our.

Speaker Change: And we have the balance sheet to do it not too big Big M&A I don't I'm not consolidator of shale shale in the U S. So that's I can perfectly understand wetzel T or peers have done, but we are not in that business.

Speaker Change: But we can we have the balance sheet in order to be a to b to b I would say to be active on both sides, but sitting and divesting.

Speaker Change: If he doesn't fit.

Speaker Change: But I would say what I would say.

Speaker Change: Good.

Patrick: Thank you, it's Lydia Rainforth from Barclays, and the 100 year milestone is a great chance to look forward and back as well. When you think about the structure of the industry, it has been remarkably stable for the next, for the last 20 years. How do you see it going forward? Because it does seem that we've got a lot more volatility, and a lot more regionalization. And almost back to that chart that of... Olivia, the CFO versus Bren, is there opportunity for that to diverge more as we go forward? And then, if I think basically a little bit about this story around the safety side, there's obviously changes in processes that are being put in place. Do you think you can make those changes both quickly and safely in terms of just the fact that there are going to be more and more processes that need changing in a world where there's more digitalization? Okay, safety. That's true, but it's a little frustrating to discover the need to have a fatality to put into question. Honestly, this example is a good example.

Speaker Change: Yep.

Speaker Change: Thank you, it's Lydia <unk> from Barclays.

Lydia: 100 game I'll say is a great chance to let forward them back as well.

Lydia: When you think about the structure of the industry. It's been remarkably stable for the next for the last 20 years.

Speaker Change: How do you see it going forward because it does seem that we've got a lot more volatility.

Speaker Change: A lot more visualization.

Speaker Change: Hi.

Speaker Change: Got that.

Speaker Change: And if you as a CFO.

Speaker Change: Ben is the alpha chain, Keith about Zika diverge more SBA for what.

Speaker Change: And then if I think looking back they still be around the safety side.

Speaker Change: The changes in processes that <unk> put in place do you think you can make those changes.

Speaker Change: Clay thanks.

Clay: Thanks, Anthony just any.

Clay: Any more and more processes that may changing in a world that is more digitalization.

Speaker Change: Okay safety.

The vet school, but it's a little frustrating to discover you need to have a fatality to put into question.

Speaker Change: As an example is a good example, myself I'm a little frustrated, but it's because we have a fatality, which we take as a topic can we say I remember I said, you will stop and we find a way and at west provocative for most of the top why are we obliged to put somebody in visa taxes. So here. It is that it's a rule industries working that is most efficient.

Patrick: Myself, I'm a little frustrated, but it's because we have a fatality when we take the topic and we say, I remember I said, you stop, and we find a way. And it was provocative from us at the top. Why are we obliged to put somebody in this gap? The reality is that the wool industry is the most efficient in terms of cost because it's shorter. And we have the feeling that it's safe, but it's not safe. And I think, okay, it's a decision. It's where safety is a value. That means that maybe it's longer to go with the water, etc. But at least you don't have anybody inside the reactor. I feel much more comfortable.

Speaker Change: Of course, because it's shorter.

Speaker Change: And we are defending it safe, but it is not safe and I think okay. So decision, it's where safety is of value, which means that maybe it's longer to go with the water and <unk>.

Speaker Change: Hey, Rob, it's a tissue nobody's entitled reactor I feel bad shape much more comfortable and it's good to see but we are sharing that are knocked colleagues are in the central big peers are thinking at all on the same wave unless they want to so that's true, but it's quite frustrating, but we could have done that before so the reality and I think at least what is positive, but we have reacted to new.

Patrick: And it's good to see that we are sharing that. And our colleagues, I understand, our big peers are thinking on the same wavelength. They want to

Patrick: So that's true. But it's quite frustrating that we could have done that before. The reality, and I think at least that is positive, that we have reacted in a way that forethought it, because the initial reaction: they told us, no, there is no other way. No, no, we told them, if you give us a target, no human being inside these reactors, what do you do? The channel is not

Speaker Change: Way, which fossil teeth because of initial reaction because nobody's no go away.

Speaker Change: We thought it would be if you give us a target no human being inside these reactors what do you do.

Speaker Change: They came with a solution on this again I'm not an expert on these type of technologies and we say, okay, let's push on it yes, it's a little more costly because it takes a little more time, okay. So an arbitration, but I feel more safer. So this is good for a good question, but maybe we should look to other processes, where we expose people to this type of environment and again people always think about it.

Patrick: It's a question of putting in, it's a good element, so we think we share it because we need to look again to avoid any, I would say, unsafe situation we can avoid, even if it has a cost. But, in the end, it's safety first. So thank you for the remark, and it's true that there is a positive part. We've done it, but we could have maybe done it before. On the first one, so the volatility of the structure of the industry, you mean the strategies, or you mean, I'm not sure I have captured your question fully. Just in terms of, we've had, it's been relatively stable in terms of the structure of the industry, and now as we go forward to the next 20 years, it seems like there's a lot more volatility as we add in more renewables.

Speaker Change: It's it's a it's a question of putting it is a good element. So we think we share it because we need to look again to vote.

Any I would say unsafe situation, we could avoid even if it has a cost but at the end is safety first.

Speaker Change: Thank you for the remark in the.

Speaker Change: It's true it surveys cause at this point, we've done it but we could have maybe done it before.

Speaker Change: The first one so it's just a volatility of the structure of easily your means of strategies are you mean the.

Speaker Change: I mean, the truth Rev capture for your question in terms of I'd say, we've had it's been relatively stable since the structure of the industry and that is we got foolish that 'twenty is it seems like there's a lot more volatility as we have them well they need to move more M&A mono bores nothing yet say that just in terms of that Shah of cash like this is Brad.

Patrick: Do you mean more M&A and more renewables? More renewable energy, yeah. So, but just in terms of that chart of cash flow versus bread, that kind of illustrates the point that I was making that ultimately we're getting more, and that do you end up having to be able to break that successfully longer term so that you continue to get more upside on that? I think it's a question of, again, continuing to have, if you keep in mind that your portfolio on the oil and gas will be on one side, you I'm absolutely convinced there are opportunities to do that. If you keep that in mind as a real target, yes, it's a question of being focused on what I want to achieve, including, it's a case, it's always the same discussion between growth and value. And, you know, that's the arbitration.

Speaker Change: That's the point of making that ultimately we're getting more.

Speaker Change: Do you end up having be anther bank that successfully longer term that that you continue to get more upside on a laptop.

I think it's a it's a question of again continuing to if you will keep in mind that your portfolio of the oil and gas will be on one side you look breakeven you maintain it in that you look to what is the right assets in order to capture part of the upside you can continue to build on anytime I'm, absolutely conveys opportunities too.

Speaker Change: But if you keep that in mind as a SUV all target. Yes, you. It's a question of being focused on what you want what do I want to achieve.

Speaker Change: Including Egypt is a case, it's always the same discussion between girlfriend value and you know about the arbitration, we should not be a so the knee obsessed by the 2% growth even if we have to get 2% goal for two to three because we have the portfolio to execute knowing it's a matter of execution.

Patrick: We should not be suddenly obsessed by the 2% growth, even if we have declared 2% growth for 2 to 3, because we have the portfolio to execute. No, it's a matter of execution, including on the LNG part, where it's part of the keeping part of the upside, that's part of it.

Speaker Change: Including on the LNG part, where it's part of keeping part of the upside, but it's part of it.

Patrick: Do we see more divergence because of renewables? I would say it's another business. You see some strategies diverging. I think some of our companies will come one day or the other to electricity, even when you want to produce or not. When you decide to produce your green molecules, the famous molecules, what is hydrogen when it's green?

Speaker Change: It is do we see more divergence because of rule EUA boards I would say, it's a novel business you see some strategies diverging.

Speaker Change: I think some of your companies will come one day of yogurt to electricity, even when you want to produce or no. When you decide to produce youll green molecules a famous molecules what is agile jade when it's great you said exquisite.

Patrick: Electricity. So you have to manage energy as a fundamental feedstock, even when you want to produce these e-methanol or e-whatever it is, e-fuels tomorrow. So I think it's part of, and from my perspective, all the efforts we've made, and we are making to manage, you know, the cost of electricity, the process of producing electricity will help us tomorrow to go to this field of molecules, knowing that today the demand for these molecules is not great. You know, you were speaking about EVs; I could say the same about hydrogen.

Speaker Change: So Nick twisted tea, so you have to manage with.

Speaker Change: Energy is a fundamental feedstock, even when you want to produce visa emitter Anoro E. Whatever it is issued tomorrow. So I think it's part of and from my perspective, I think all the efforts. We've done we are doing to be too.

Speaker Change: To manage the cost of electricity is a process of what you're seeing with efficiency will help us tomorrow to go to visit the molecules knowing that today is a demand for this molecule is not big you know you were speaking about EV equity to save but Oh, Jamie you know there is a lot of enthusiasm in media when you look to the reality of the demand.

Patrick: You know, there is a lot of enthusiasm in the media when you look at the reality of the demand. By the way, we've got $500,000 a ton per year that we are putting on the market. It's quite a success, by the way. We have 50 offers.

Speaker Change: We've got $500000 Todd.

Speaker Change: Todd per year, but we are putting on the market is quite a good success by the way we have 50 offers.

Patrick: I'm not sure we need to qualify that, but we have seven times more; the volume which is offered is seven times more than what we are ready to buy. So we'll see competition in the price now, because the total question of volume and price and, probably, part of these offers are not completely in line. But we are optimistic that we could get some good products, including maybe investing in some of the health projects. We'll see how it works. So I think it's a question of demand there. So yes, there is some divergence, but honestly, we are very comfortable. And as long as, and as I said, we can remain at the top of profitability globally for the company, building the Second Pillar with Pillar on Electricity is OK. I would be worried if I were shorter; suddenly, I see a decrease in profitability, that would be more. We are comfortable on the board; can go that Henri.

Speaker Change: I'm not sure if we would need to quantify that but we have seven times more the volume, which is a 37 times more than what we are ready to buy so we just see the competition the price now because the third question a video of our price and probably part of these offers are not completely in line, but we are optimistic that we could get some good good good.

Speaker Change: <unk>, including May be investing in some of the project ourselves with you the way. It works. So I think it's a question the demand there is so.

Yes, there is some divergent, but honestly I, we are very comfortable and as long as I said that we can remain at the top of profitability globally of the company.

Speaker Change: Building the second pillar is build our next question is okay.

Speaker Change: We'd be worried if I wish orders certainly I see a decrease of the profitability, but would be more quickly, but we are comfortable with the board with it.

Speaker Change: Can go that Oh.

Patrick: The first question is on dividend growth. You mentioned earlier that with the $2 billion buyback per quarter, you have this 5-6% base growth and then an additional 1%. Could that additional 1% become larger in the future as you get more underlying cash flow growth, integrated power, and integrated energy? Or are you more comfortable with the 7%?

Speaker Change: Our first question is on the.

Speaker Change: The dividend group you mentioned again, we've done $2 billion buyback per quarter. You have this five 6% base growth and then an additional 1% additional 1% become larger in the future as you get more underlying cash flow growth integrate polar integrated LNG are you more comfortable that it will come larger Isa sure. He is.

Patrick: It will become larger if the share is going up because we are also looking at the yield. The yield is at 5.1%, which is on top of the majors.

Speaker Change: Yeah.

Speaker Change: Because we are looking also to the yield the yield is at five 1%, which is a on the top of the majors and we are it's linked Novo. If you will say, maybe it's a dividend golf, we didn't keep we put the price up it's a chicken and egg that sorry, but no we are honestly our world.

Patrick: And we are, it's linked, you know, you would say maybe the dividend growth, we didn't put the price up, it's a chicken and egg thing, but sorry, but no, we are honestly very hopeful. There is room to do more, but we are comfortable because, again, we prefer to increase the dividend in a way that we can secure it even if the cycles go down. So 7%, 8%, 1 cents. OK, that's the type of discussion.

Speaker Change: There is room to do more but we are comfortable with because again, we want to we prefer to increase the dividend in a way that we can secure it even if the cycles go down so Cebu and 8% one central case, that's the type of discussion but.

Patrick: But we prefer to have a steady policy of increasing the dividend several years in a row rather than suddenly going down. And so that was the discussion, the philosophy. When we benchmarked ourselves against our peers, we felt that 7% was quite on the good side.

Speaker Change: Referred to have a steady a policy of increasing the dividend several years in the whole rubber, but suddenly go down and so but that was the discussion that philosophy.

Speaker Change: When we benchmark tool to our peers, we feel it but we felt about the 7% is quite on the good side.

Patrick: And again, we have, I think the big news for TotalEnergies, what has changed in our history, is that we have really enhanced the..., and other chief financial officials. We can execute it if we are profitable and if we return to shareholders a bigger share of that. Otherwise, people would tell us, why do you invest in this transition? Is it profitable? The fact that we remain very profitable and that we return to shareholders is a way as well to execute the strategy. Transition Strategy, equation, somebody asked me what a mathematical formula is. There is not a mathematical formula for this.

Speaker Change: Again, we have I think the big news for total synergies were changing always toy story.

Speaker Change: Is that are we have really enhance the.

Speaker Change: So pay out policy to shareholders, we will add 40% two years ago and onto a more than 14th like Vizio out 45. So this is a big chance and including this is kelly anchored into them in the mindset of the board today, but we need to monitor that because it's also part I would say of energy transition strategy we.

We can execute it if we are profitable and if we return to shareholders a big.

Speaker Change: Are you sure that otherwise people that is why do you invest this transition is it as profitable as the fact that remains a very profitable and that we return to shareholder is a way as well to execute this strategy to transition strategy, we want to execute and where we strongly believe we will deliver cash flows for the future for our shareholders. So that's.

Patrick: We are looking for what we think is the right balance. And then, secondly, I wanted to follow up on a couple of LNG projects that you mentioned. Just firstly on Mozambique LNG, can you give an update on the security situation and how quickly you think it could get back to construction there? And secondly, on Arctic LNG2, how do you see that project ramping up, and what have you factored in for your project? Arctic LNG2 is quite easy to transport.

Speaker Change: <unk> equation, but he's doing so but yes. It was it's a mathematical formula is not a mathematical formula we are looking to where we think is the right balance.

Speaker Change: And then second I wanted to follow up on a couple of LNG projects that you mentioned just firstly on Mozambique LNG. If you can give an update on our securities situation and how quickly you think you could get back to you with the construction there and secondly on Arctic LNG two.

Speaker Change: Or do you see that ramping up and what have you factored in for your new Arctic LNG two is quite easy ice under sanction so stories off.

Patrick: It's under sanction, so the story is off. I'll be clear, I've never, honestly, I'm unfortunately, I mean, not surprised. What was happening?

Speaker Change: To be clear I never honestly I'm Unfortunately, not surprised.

Speaker Change: What was happening we were very cautious in 'twenty two when we announced that we are written off or that it will.

Patrick: We are very cautious in 22 when we announced that we had written off all that will, So projects have moved on because these Novatek guys are quite incredible and we are able to... put into production a new trend despite all the sanctions and etc. So, in fact, in terms of engineering, it's quite a remarkable achievement. I'm not surprised because it was difficult with the Europeans need to have this Yamal energy. 20 million tons.

Speaker Change: So projects has been has moved on that because these are no but the guys are quite incredible valuable tool to put into production a new trend. Despite all the sanctions and the extra to us. So in fact in terms of engineering, its white or we come into the market with achievement.

Speaker Change: I'm not surprised because it was difficult to see Europeans need to have these yamal LNG is 'twenty beyond tons, but to add more caution than energy into makes it little politically complex you note wed more so I'm not I'm not super surprise on that.

Patrick: But to add more Russian energy to the mix, it's a little politically complex, you know, to add more. So I'm not super surprised by that. So that's where we are. So honestly, today, we are not more involved in governance. We have no, we have put in force measures to measure everything. So I cannot give you more information because we are not there anymore. And of course, our trading team or LNG teams were in contact, but we have put in place force measures because it's a, but the reality, you know, no way to expose a company to any type of secondary sanctions. It's much clearer to me, so yeah, the process. What I understand, just to share with you, is that they are willing to install the second train. The third train, for me, is on hold, which I understand, but the second train seems to work.

Speaker Change: So that's where we are so honestly today, we are not more in the governance. We have no. We have put in force measure everything so I cannot give you more information because we don't we are not there anymore and of course, all treatment trading tmall Yeah LNG.

Speaker Change: And then she teams were in contact, but we have put forth measure because its but its the reality no way to expose our company to a new type of secondary sanction.

Speaker Change: That's clear to me so we all the process.

Speaker Change:

Speaker Change: On what they understand just to share with you is that we are willing to install the cig on trades of food train for me is on old, which I understand but segun Twain seems to move.

Patrick: Where is the market? Not in Europe. Sorry, there is only one possible. One of them, but it's not...

Speaker Change: Where is the market not in Europe.

There is only one possible market.

Speaker Change: One or two.

Patrick: It's not in our assets anymore. On Mozambique energy, listen; we monitor the situation on the ground constantly. As you know, the Mozambican state is helped by another African state, namely Rwanda, to control the situation today.

Speaker Change: But it's not it's.

Speaker Change: It's not you know no assets anymore.

Speaker Change: All the Mozambique, LNG listen I mean are we have made or may make printing money to a permanent situation on the ground.

As you know there are some of the Mozambique State is helped by a number of African states, mainly namely Wanda to control the situation today and more importantly, it was so severe population is back in the area of life is back to normal formality there have been few incidents recently.

Patrick: And more importantly to us, the civilian population is back in the area. Life is back to normality. There have been a few incidents recently linked to Gaza... Thank you for watching.

Speaker Change: A link to the Gaza.

Speaker Change: So I would say you know you we can now we can observe in the planet, but you have some dash cells, which are being reactivated chose to not only there in many many countries you know you've seen some so that's unfortunate but today's it until we have to monitor that but today in fact, it's more to reactivate your contract there is still some engineering to be.

Patrick: We monitor that. Again, what I don't want to do is to take a decision to bring back people who are obliged to go out again, because that would be too complex. But again, today, the discussion with the suppliers, we have progressed a lot with them. Suppliers, I mean the different contractors. In a good way, I mean, including on the cost, you know; we've had some debates, we have listened to our messages. They want to reactivate it, but no, the final point, again, is to bring back Jean-Pierre Wuerck and say that we helped him with the global financing. It was a big financing capacity that we need to reactivate. We are working on it. It should come in the coming weeks. Okay. Alastair Syme, from Alastair Syme at Citi.

Speaker Change: So that's part so construction I hope it will come back by being out of the year.

Speaker Change: We monitor that again, what I don't want to do is.

Speaker Change: To take a decision to bring back people to be obliged to go to get out again, because that would be too complex you know so but again today our discussion with.

Speaker Change: We have progressed a lot with the 60.

Speaker Change: Players are in the different contractors.

Speaker Change: Good way I mean now including on the cost you know we've had some debates we have listened to our messages they want to hear reactivated but now the final point again is to put back.

Speaker Change: This is shakeel work, because we L. P M on the so global financing it was a big financing kept pace, but we need to reactivate.

Speaker Change: Yeah.

Speaker Change: We are working on it it should come in the coming months.

Speaker Change: Okay.

Speaker Change: Alastair Hussein.

Speaker Change: From Alastair Syme Citi, Patrick you them more or less optimistic on Namibia than you were last September I mean, I guess, you're putting a third of your exploration budget and so I'm guessing you're all domestic.

Patrick: Patrick, are you more or less optimistic about Namibia than you were last September? I mean, I guess you're putting a third of your exploration budget in, so I'm guessing you're optimistic. No, I said the same thing, I told you, I think I'm completely optimistic. I kind of had the impression...

Patrick: No I said, let's say earlier I think I'm optimistic.

Patrick: I kind of had the impression I'm more optimistic about my colleague.

Patrick: I'm more optimistic about my colleagues. Right? Because we don't have the same license. But what does Mangetti do?

Speaker Change: [laughter], because we don't have the same license.

Speaker Change: What does what does mend jetty too I was under the impression that would add another another reasonable space no. It's H.

Patrick: I was under the impression that it would add another resource base, right? No, we found back the Venus horizon, I can say, so it's adding additional resources. It's not huge. And the DST results that you've had? We don't have the DST yet. But from the two Venus wheels?

Speaker Change: We find back the Venus Oh horizon I can say, so it's adding additional resources is not huge.

Speaker Change: And the DST results you have you don't have to just yet.

Patrick: Yeah. But on Venus, again, we had one very good DST, the second one, but again, it's the location of the well, is it perfect or not, it demonstrates some heterogeneity, that's why we need to find to be sure that when we develop, we develop, and we locate the SPSO on the right spot, not to be too far from the sweet spot we want to develop. It will be a little like Suriname, you know; it will be a combination of different sweet spots. So the location where you put it, because then you have the length of your pipelines, the So if you want to minimize the cost of the subsystem, you have to locate it properly to appraise it in order to be at the optimum for location. That big of a deal www.totalenergies.com Weekends, But my second question is just on German power prices. I think when you did the auction last year, you sort of indicated a view that 70 to 80 euros a megawatt hour is kind of where we've now pulled back. I'm very proud of them.

Speaker Change: The to Venezuela.

Speaker Change: But the business again, we had one very good DST has just begun one against the location of the well is it perfect.

It demonstrates some it'll genuity, that's why we need to find to be sure that when we develop we develop and we look at U S. P. S who the right partner to be too far from the sweet spot we want to develop it will be a little like Susan no. It will be a combination of different sweet spots. So is the location where you put because then you have the length of your pipelines of subs.

Speaker Change: T system. So if you want to minimize the cost of the statistics that you have to locate properly to our place in order to be at the optimum location.

Speaker Change: Okay.

Speaker Change: Bigger than Suriname.

Speaker Change: [laughter].

Speaker Change: Wait and see okay.

Speaker Change: My second question is just on German power prices, having when you did the auction last year, you sort of indicated a view the 70 to 80 euros and megawatt out as kind of we've now pulled back too.

Speaker Change: In Germany, you get a process of go back a long way.

Speaker Change: But what's been remarkable is theres no real demand elasticity like into industrial demand is to really weak.

Patrick: Does that worry you that the economy can't support these power prices? No, no, no, because again, Germany has decided that it will exit from nuclear power and it will exit from coal. So the poor price in Germany will be fundamentally driven on one side by these renewables, but also by gas plus ETS. Don't forget the ETS.

Speaker Change: Does that worry you that the economy count support these power prices no no no because again oh.

Speaker Change: Germany has decided that the exits from nuclear exit Hong Kong. So the pool price in Germany will be fundamentally driven on one side by these renewables, but but also by from the Mcgee gas plus ETS.

Patrick: So the fundamental element, in fact, in the electricity economy in Europe is also the ETS price. It's linked to that because, in the end, the marginal price will be determined by the ETS on top of the gas. So when you have a country that decides that it will go from gas plus gas plants plus renewables, the price will remain a good price. So today, I think the forward curve in Europe today, in 2025, is 79 euros per megawatt hour. Okay. That's fine.

Don't forget of Etfs, so the fundamental element in fact, indeed exquisitely economy in Europe is also the Eth price.

Speaker Change: And sticking to that because at the end of the marginal price will be done by the ETS on the topic of again, so when you have a country, which decide which they will go from a guest lists the gas plants for us.

Speaker Change: So price will remain a good price. So today I'm, a I think as a full world you have in Europe. Today are in 25 years 79 year old coming out with them. Okay. That's okay. We are fine with that so.

Patrick: So I'm, no, no, we are comfortable with developing this offshore wind in Germany, and we will find customers who are ready to commit on the long term because it's a question of, you know, what the industries don't like is the volatility of the price. We were afraid. So it helped us to consider that when we said 70 to 80 euros per megawatt hour to some of these industries, it's okay. You can find them. So I'm, no, let's see Germany from this perspective again because the choice of the policymakers is, I think, one of the good markets to take this type of bet to keep some wind, offshore wind merchants in Germany, in Germany. Please. But it's also a good market to have some batteries, because when people say we want 70% of renewable energy, if you don't have plenty of batteries everywhere, I can tell you it will be difficult. Chris Kuplent from Bank of America.

Speaker Change: So I'm no we are comfortable with our developing visa who wins in Germany, and we will find customers who are ready to commit on the long term because it's a question of noteworthy industries don't tankage to is the volatility of the price we were afraid suite as opposed to consider that when we said 70 to eat you up.

Speaker Change: Let me go with the two some of these industries. It's okay, you can find them.

Speaker Change: Now, let's see Germany from this perspective again because of the choices of policymakers.

I think one of the good market to take this type of a bed to keep some its wind offshore wind merchant in Germany and Germany.

Speaker Change: Chris.

Speaker Change: But it's also a good market works of batteries.

Speaker Change: Because when people are saying, we want 70% of our renewables. If you don't have plenty of batteries is really where I can tell you it would be difficult.

Speaker Change: Yeah, Chris Coupland from Bank of America of Patrick and congratulations on closing that drillship deal I do think it's quite a departure for the industry.

Patrick: Patrick, congratulations on closing that drillship deal. I do think it's quite a departure for the industry. Maybe you can give us a little bit of an insight into what you're hearing from your partners on all those projects. Are you also frustrated that you think their capital discipline is waning a little bit? Because I share your view, there isn't a huge amount of competition out there in that part of the industry. And do you think others will follow in this step? How many more are you going to buy?

Christopher Kuplent: You can give us a little bit of an insight what you're hearing from your partners and all of those projects are you also frustrated that you think that capital discipline is waning a little bit because I share. Your view there isn't a huge amount of competition out there in that part of the industry.

Chris Coupland:

Chris Coupland: And do you think others will follow in a in this in this step how many more are you going to buy.

Patrick: You know, it was a situation, but I think it's true that it's a breakthrough, including in the company, but the idea that, you know, because this industry is a story of the 90s, you know, in the 90s, it's an old story, but the industry has changed. In the 90s, companies were owning ships and drilling ships. But then suddenly the price went down, they were stuck with the rigs, blah, blah. And so they decided it was not a business. In the meantime, we are not at $10 per barrel; we are at $80, $50. What I've observed for my last 25 years in this industry is that the low bottom of the deepwater rigs is $200,000 per day. It could go up to $500,000 or $600,000.

Chris Coupland: I know it was a situation because I think it's true, but it's a breakthrough in the company, but the idea, but we know because as this industry.

Chris Coupland: It's the story of the nineties you know in the Ninety's. It's all story because it just gets changed in their nineties.

Chris Coupland: Companies owning ships the Drillships, but then certainly the price went down in the West, Texas, the rigs and blah blah until we decided this its a subtle business in the meantime, we are that the tender offer by Israel a T. Adventists 50, what I've observed for the last 25 years as this industry is that <unk>.

Chris Coupland: <unk> offers a of deepwater rigs is to handle that falls under our policy.

It could go up to 500, the 600 honestly no because of the vagaries around $800 million. When you pay 500000 barrel per day, you pay so they get four or five years. We have done this type of mistake from 2010 to 2015, our super frustrated to be honest, but we have Pedro rigs.

Patrick: Honestly, the cost of the rig is around $800 million. When you pay $500,000 per day, you pay for the rig in four or five years. We have made this type of mistake from 2010 to 2015. I was super frustrated, to be honest.

Patrick: But we have paid for the rig, and, in fact, fully. And, in fact, at the end of the day, we are beginning again the same history, you know. And so the only way is to edge our things. We will not operate the rig.

Chris Coupland: And in fact fully and in fact at the end of the day. So we are beginning against your semi story, you know and so the only ways to edge of things why don't we will not operate so easily will be operated by vantage. So we wanted to have a partner we would not operate but we have 75. So at the end we do he sees the cost that we will sell it.

Patrick: The rig will be operated by Vantage, so we wanted to have a partner. We will not operate.

Patrick: But we have 75. So at the end, we will receive the cost, and we will sell it. And the key to this rig will be sold to a partnership at a market rate. And again, but it's, we need to do something. We cannot just look at the cost going up and complain. So what can we do?

Chris Coupland: This rig will be sold to our partnership with the market rate.

Chris Coupland: Well, that's the way the game should we lower photo I know, what they have announced that the two some of what they look to US I think it's just nothing you putting 200 million dollar in advance underway in order to secure 10 years' It at all I see that.

Patrick: So this action, it's true that Vantage was a company in financial distress. So we had a good discussion, but it's more in our heads that we need to be innovative sometimes. So I'm comfortable, again, one is nothing compared to my eight or 10. I could have two or three.

Chris Coupland: The size of the scale of our operations is stuffing in fact, when you okay. It's innovative.

Chris Coupland: I think yes, my only point I don't want to or my team to be a super excited we all know so it will be managed by vantage with Davita and no. We don't one we don't operate and again, but it's we need to do something we cannot just look see costs going up and complaining. So what can we do so these action each school, but with vantage weather.

Patrick: At a certain point, I need to keep flexibility, but if I have other opportunities, I will look at them. So it's a question of opportunities, but I mean, it's a lesson from the year 2010-2015. We cannot just repeat the same mistake.

Chris Coupland: <unk>, which was the financial stress so we had a good discussion but.

Chris Coupland: But it's moving ahead, but we need to be innovative sometimes so I am comfortable and again one is nothing compared to my age of 10 I could have two affiliates at that point and to keep flexibility but.

Chris Coupland: If I ever opportunities that we look at it.

Chris Coupland: So it's a question of opportunities better.

Chris Coupland: Is it it's the lowest end of the year 2010, 2015, we cannot just repeat the same mistake, we have some projects, but if your capex going up why shouldn't I wanted I want to do the project, but I need to find ways to control my cost and this is one way to actual drilling cost.

Patrick: We have some projects, but if the capital expenditure is going up, why should we not? I want to do the project, but I need to find ways to control my costs, and this is one way to hedge our trading costs. Thank you.

Patrick: Can I have a quick second question, Patrick? You commented earlier that you don't really see looseness in the global LNG pool before mid-2026. Is that close enough for your customers in Asia, in particular, that they're already telling you, you know what? I'm not finding these Brent slopes, etc. There's plenty more to come in the latter half of the decade.

Speaker Change: Thank you can I have the quick second question Patrick.

Speaker Change: You commented earlier that you don't really see looseness in the global LNG pool before mid 2026.

Speaker Change: Is that close enough for your customers in Asia in particular that they're already telling you you know what I'm not signing these brands slopes et cetera, there's plenty more to come in.

Speaker Change: In the latter half of the decade.

Patrick: No, in fact, no, because, in fact, what we observe is that when we marketed the... P&G, who had quite a number of offers, not a 14% brand, let me be clear, but a quite reasonable brand where we were ready to sign. We have signed with HOA. We consider them to be good for the project in the long term. So today, they keep, they still have in mind what happened in 2012.

Speaker Change: No in fact, no because in fact, they are what we observe is that when we marketed the.

P&G.

Speaker Change: A number of foods.

Speaker Change: Not at 14%, Brian and to be clear, but two quite Skus unable brand, where we were and where we are ready to sign we have signed some HOA. We consider they are good for the project of the long term. So today they keep they still have in mind with attorney in 'twenty two.

Patrick: So they see the shock of 22, which makes them think, okay, it may be long term. Because, in fact, to avoid this huge volatility, the only way is to make it long term. So there is a long term. And again, we have been approached by some Chinese energy buyers who are really keen to go on the longer term. I would say that from this perspective, what has been done in the US with the temporary ban is helping other projects in the world.

Speaker Change: They see the shock of 'twenty to make them figure okay. It may be long term because in fact to avoid the huge volatility the only way to make long term. So there is a long term and again, we have been approached by some Chinese LNG buyers, which.

Really keen to work to grow the longer term I would say that from this post Vicki what has been done in the U S.

Speaker Change: <unk> batten is helping the over projects in the world because in fact.

Patrick: In fact, Honestly, I'm not suffering from it in our portfolio. The problem of this type of move, even if it's for an electoral campaign, and we know the story behind it, is that it's a question of trust in the capacity of the projects to deliver. And that's not very good.

Speaker Change: Honestly I'm not signaling of it for the portfolio.

Speaker Change: All of these type of move event is for electoral campaign and we are we know the story behind it is that it's a question of tests and the capacity of the project to deliver that's not very good. So it bush. These over a buyer's decision by us not only to rely on the U S LNG, but to look to other locations.

Patrick: So it pushes these other buyers, these Asian buyers, not only to rely on US energy but to look to other locations, which is good for Mozambique tomorrow. You know, we have one million tons which will not be renewed by one of the buyers. TotalEnergies will take part of it, and we can sell that. So it's good for Qatar. It's good for all these projects.

Which is good for Mozambique Tomorrow, you know, we have 1 billion tonnes, which has been which will not be renewed by one of the buyer. We are with total industries will take part of it and we can set that's always root for Qatar. It's good for all of these projects. So I see that there was a long term is still there and does not disappear. Despite the fact that you are right.

Patrick: So I see that the long term is still there and does not disappear, despite the fact that you are right; we could anticipate a certain lower price on the spot that they are willing to cover. So today is more than they are willing to think. Thank you. Not only in China.

Speaker Change: We could anticipate a certain rule where price of the spot. They are willing to cover so today's marvin them the ability to pink. Thank.

Speaker Change: Not only in China between the <unk>.

Patrick: It's true in Japan. It's true in Korea. So Asian buyers are very interested. We have people on the phone as well, I think. Yes, we have Jason, I think, Jason Gabelman, who's online. They want to ask questions; we can take the questions. Yeah, they woke up early.

Speaker Change: In Japan screw in Korea, So Asian buyers are all of them.

Speaker Change: Okay.

Okay.

Have people on the phone as well, yes, we have Jayson I think Jason Geldermann wisdom on 90 I want to ask question, we can things yeah, they will carefully.

Patrick: Yeah, hey, can you guys hear me? Yes. All right, great. I had two questions. First, I just wanted to clarify an earlier answer, discussing net debt. I don't know if you gave an actual gearing target, but it's moved around over the past number of years.

Jayson: Yeah, Hey can you guys hear me.

Jayson: Yes.

Alright, great.

Jayson: I had a few questions first I just wanted to clarify an earlier answer.

Jayson: Discussing net debt I don't know I don't know if you gave an actual gearing target, but it's moved you know across the past number of years. So I'm. Just wondering if you could provide an updated gearing target moving forward and then secondly, going back to LNG trading.

Patrick: So just wondering if you could provide an updated gearing target moving forward. And then, secondly, going back to LNG trading, it seems like in the past few years you've benefited quite a bit from the spread in global gas prices versus Henry Hub gas prices, just given your position in US LNG. Are you able to kind of optimize global LNG flows to replicate kind of the upside you've seen from the US to global gas price spreads as the market kind of expects that spread to tighten over the next few years? Thanks.

Jayson: It seems like the past few years, you you've you've benefited quite a bit.

Jayson: The spread in global gas prices versus Henry hub gas prices, just given your position in U.

Jayson: U S LNG.

Jayson: Are you able to kind of optimize global LNG flows.

Jayson: Hum.

Jayson: Replicate kind of the.

Jayson: Upside you've seen from the U S to global gas price spreads as the market kind of expects that that spread to tighten over the next few years. Thanks.

Patrick: Okay. No, we don't have a gearing target. We are very comfortable with 5%.

Jayson: Okay.

Speaker Change: No. We don't express your gearing target, we are very comfortable with 5%.

Patrick: I think the CEO's variable pay target is under 10%, if I remember. This is a board, so you have an idea what I should control is under 10%. I'm very comfortable going down to zero. I mean, I'm very comfortable.

Speaker Change:

Speaker Change: I think as you see you set out valuable pay target is under 10%. If I remind this is a board. So you have an idea of what they should control is undeterred.

Speaker Change: Are you comfortable to go down to zero I mean, they're very comfortable to work, but it's no problem.

Patrick: There is no problem. But it's more, again, in terms of today, at 5%, we have reached a very strong balance sheet. So my CFO is comfortable. He does not shout to go lower.

Speaker Change: But it's more again in terms of today at 5% that we have reached a very strong Gabon sheets of myself, who is comfortable not to show to <unk>. So is the priority is more in the way, we allocate capital first to our capital and expand the dividend or capital expenditure.

Patrick: So the priority is more in the way we allocate the capital, first to capital expenditure, the dividend, the capital expenditures, and the return to shareholders with more than 40% of cash flows. I would say that's the main commitment. So no, we don't have to have less than 10% is okay, I think, but we can go down to zero, no problem if we have zero debt or even a positive treasury. Oh, and so on. As I say, the portfolio is basically, we have a long-term portfolio where we buy and re-hub and fix costs, and we sell partly Brent, partly GKM, and TTF, and then we have a global optimization with plenty of optionality in the portfolio. One of the big ones being to be able to switch from Europe to Asia and from Asia to Europe.

Speaker Change: Chairs and return to shareholders with more than 40% of cash flows I would say that's the main commitment. So no. We don't have a lesbian percentages. Okay, alright, thank but we can go down to zero no problem, if we had zero debt or even a positive treasury.

Speaker Change: Yeah.

Speaker Change: Again, our new true too and so I will go to Stefan to answer to the question, which is I understood.

Stefan: Can we optimize the global LNG flows to replicate the upsides, we've seen in the fast so explain again, which we are doing with your portfolio.

Stefan: Yeah.

Stefan: So as I say, the bolt who do is basically we have a long term portfolio, where we buy in rehab and <unk> and we sell a box you Brent Buckley.

Stefan: Jim in the GTA and then we have a global optimization with plenty of opportunity to use it both for you.

Stefan: One of the big one being to be able to switch from Europe to Asia and from Asia to Europe.

Patrick: But you have as well plenty of other plays like the backwards, the contango, the arbitrage of timing, the possibility between Africa, LATAM, and ASEAN and so on. It's clear that in 2022 we have benefited from the spread increase between HH and GKM and TTF and that going forward, we are going to get less benefit from that. You know, because it's partly already in the level of the edge, we have been able to realize, and Patrick mentioned it, that the difference between the edge... Between 24 and 23, in terms of cash, is going to be 500 million US.

Stefan: But you have as well plenty of was it plays legs of backwards, a contango Uzi arbitrageur for of Damian you, So possibly between Africa, let them in Azure and soon <unk>.

Stefan: That's in 'twenty, two we have benefited from the spread increase between H H N G.

Stefan: He came and and GTS.

Stefan: Going forward, we are going to have less benefit from that you.

Stefan: You've seen because it's partly already are in the level of the Asia, we have been able to to realize them Patrick mentioned needs that the defense of age.

Stefan: 'twenty four and 'twenty three in terms of cash going to be 500 million U S.

Patrick: And that's done. As for the optionality of the portfolio, we are confident that we have plenty of ideas to continue to sustain the good performance we have done in the past, even if..., you shouldn't think that it's not enough. 22 was absolutely exceptional, and I don't hope, by the way, to see $30 per million in the EU 50 again.

Stefan: And that's that dawn I suppose the optionality of the Bulge, who you.

Stefan: We are confident that we have plenty of ideas to continue to sustain.

Stefan: This is a good performance B is building in the Pennsylvania.

Stefan: Yeah.

Stefan: It is continued if nobody again.

Stefan: 52 was absolutely exceptional we don't and I don't always a way to see again $40 odd million that you have 50, it's very detrimental for the demand in the market you can disclose it as a market by these type of price. So its wide so I'm I'm not willing to.

Patrick: It's very detrimental for the demand in the market. You can destroy the market with this type of price. So I'm not willing to... OK, we benefit for one year, but it's a one-off, and I hope we will not come back. It's not a normal market to see this type of price, $200 per barrel for gas. That's absolutely abnormal.

Stefan: We've been asked one yet, but it's a it's a one off and I hope will not come back it's not a normal market to see these type of prices dwindle adult upper bound for gas.

Stefan: Absolutely abnormal.

Patrick: But fundamentally, you know, what's a strong belief I have is that energy will remain quite good. That's why we built on energy in the US, because you have a huge amount of gas there, you have some domestic demand, but it's so you have, okay, it could go from three to five. But so the question is, how do you position the export market compared to Andrea between Brent and Andrea and GKM and Andrea? So that's a way of optimizing the flows. To optimize the flows, by the way, what you need is energy tankers, and we are going off of them. I think we are going to need 30 more or less.

Stefan: But in fact fundamentally you know some of them, what's just won't be refi out of his bed Andrea will remain quite low.

Stefan: That's why we built on the LNG in the U S. Because we have a huge amount of gas there who have some domestic demand, but it's so you have okay could go from three to five but so is your question is how do you position the export market compared to anywhere between the Brent and rehab and she came in a rehab so that's a way to optimize.

Stefan: The fruit to optimize their crews because really what you need is the LNG tankers and we are growing our fleet I think we are going to tee Morris, we are targeting food T. LNG tankers twice, so well growing our fleet as opposed to optimize all of these flows when the arbitrage is open between the U S and Asia, we can go to.

Patrick: We are targeting 30 energy tankers or 20. So going off it helps us to optimize all these flows. When the arbitrage is open between the US and Asia, we can go to Asia. Of course, the location of ECA in Mexico is good from this perspective.

Stefan: Asia of course, the location of ECA in Mexico is good from this perspective, and we are looking to over two OBO activity. So it's a question of devising the Panama channel from this perspective is more of a problem was then.

Patrick: And we are looking to increase activity. So it's a question of optimizing. The Panama Channel, from this perspective, is more of a problem for us than the Red Sea, because the Red Sea, when you go to Qatar, to Europe, through the Red Sea or through South Africa, it's only four days of difference, so it's not a big event. Four days; you can manage it.

Stefan: Because what I'd see a when you look at to get that to Europe.

Stefan: He Oh, who oh.

Stefan: South Africa, it's only four days of difference so it's not a big event for days you can manage it when you have to go from the Gulf of Mexico, who are.

Stefan: The.

Stefan: So further South America, Argentina back it 20 days of deferred unsecured works so its a big impact on the costs and all of the system at this point $5 per million Btu morning. So it has an impact on the arbitrage between Asia and Europe, but again one of the big asset. We are just not only the fleet, but it's the only gas in Europe.

Patrick: When you have to go from the Gulf of Mexico through the... That's also important to optimize the flows. So that's our question. I'm going to go, uh, Giacomo.

Stefan: We have a lot of re gas in Europe around 20 million ton.

Stefan: Yeah. So we can easily abitz wont make the arbitration between Europe and the rest of the world, but it's also important to optimize the food. So that's four questions.

Patrick: Welcome to Giacomo. Thank you. Patrick, sorry for asking this question. It comes up at every meeting.

Stefan: Can go chicken wings.

Stefan: Yeah.

Speaker Change: Welcome to <unk>.

Speaker Change: Okay.

Speaker Change: Thank you Patrick sorry for asking this question or it comes every meeting a M.

Patrick: You've added to your position in terms of if you want gas in the US with the CGT deal. You have talked in the past that you have been looking for and strengthening your upstream position there. Maybe you could talk about the market you're seeing for deals on gas assets, what type of assets you're looking for in terms of plays, and whether that... One of the acquisitions we could see in... for watching. So you will see soon why. It is a small one.

Patrick: You've added to your position in terms of if you want gas and and and U S. With this <unk> deal you have talked in the past that you have been looking and raising your upstream physician there and maybe can you talk about the.

Patrick: The market Youre seeing for for deals on on gas assets, what type of assets Youre looking in terms of plays and and whether that's one of the acquisition we could see in the.

Patrick: And what it's been before Milner big there, but it's something if you want could be smaller.

Speaker Change: So you will see soon one.

Patrick: It could be a sum of smaller numbers. The question for me is whether M&A is good if you buy at a good price, cheap, and so on. I need gas by 27, and Guy Raz.

Speaker Change: One could be some small assets.

So the question for me is a is the M&A is a good issue by itchy good prices cheap price.

Speaker Change: That's all so we have time.

Speaker Change: I need to gas by 27.

Speaker Change: I need the gas tomorrow morning. So we are I think it's always part of we are clear we want to urge all LNG position in the U S. We've more of shrink gas. So we are all opportunities, but don't expect us to make a giant acquisition.

Patrick: We are shy people, on the Just one on cost inflation. You talk about rigs. Can you perhaps talk about other areas where you're seeing cost inflation? And perhaps related to that, there have been headlines suggesting you're seeing some cost increases in Uganda relating to the pipeline. So perhaps just if you could talk about what you're seeing there. No, this one, we observed it in 2012. When was it?

Speaker Change: We are shy people in the U S. You know is on the market.

Speaker Change: I'm, just and one on cost inflation can you talk about Rex.

Speaker Change: Can you, perhaps talk with other areas, where you're seeing cost inflation and perhaps related to that are there.

Speaker Change: They have been a headline.

Speaker Change: Headline, suggesting you're seeing some cost increases in Uganda, we drone racing to build to the pipeline. So perhaps just if you can talk about what you're seeing this one we observe it in 'twenty towards when was it when the team wanted to order Faustina Nike shoes to pay 22, our remembers it teams came to us with a huge increase of the steel.

Patrick: When the teams wanted to order steel, and they refused to pay. 22. I remember, the teams came to us with a huge increase in steel prices, which was, It was in March or April. I say, no panic, relax. Yeah, we'll be late. I say, Okay, we'll be late. No, we'll not be late because we have other events, by the way, in this project. And, in fact, at the end, we put the order for the steel I think it's the beginning of 2023, and it was a very reasonable price. Sometimes it's just a question of arbitration between the planning and the cost. And it's true that sometimes our project managers have a clear idea of where they want to be within the planning. I told them, no, within the planning, within the budget, you know, it's both.

Speaker Change: Which was.

Speaker Change: It was in March or March or April or I say, no panic relax.

Speaker Change: It will be later say, okay. We'll be later will not delayed because we are a believer in spite of when these projects and in fact with the and we put the older homes is still I think beginning of 'twenty free and it was a very it is when they will apply so sometimes it's just a question of arbitration between the planning and the costs and so that's true, but sometimes more project managers they ever clear.

Speaker Change: They want to be a within the planning I totally know within the planning with the budget you know it's a book so sometimes it's just a question for the management to okay to arbitrate between both.

Patrick: So sometimes it's just a question for the management to, okay, arbitrate between both. And again, on some of the projects we observed today, we have a debate about some of them, but I mentioned we want to sanction CPA2, Atapu2, Suriname, and... and Camino. We need to, if we have to delay one, we'll delay one.

Speaker Change: And again if on some of the project. We are upset today, we have a debate on some of them are what I mentioned, we want to sanction CPR towards a put to them.

Speaker Change: Sure and.

Speaker Change: And.

Speaker Change: We need to if we have to delay one will do they want but on the show and I can tell you. We are trying to work on an innovative solution.

Patrick: But in Suriname, I can tell you, we are trying to work on an innovative solution. By the way, looking carefully at what our big friend in Grienna is doing to benefit from their own way to develop fields. So we try to transfer part of their way to manage some of the least efficient FPSOs in order to be efficient at cost. So the costs, for me, are fundamental. What we should not be doing is replicating the mistake we did in 2010 by being driven more by volume than value, so managing the cost. And so you have to look at different options. Our teams love to operate.

Speaker Change: By the way looking carefully to what a big trend in realized doing benefit form their own way to develop fields. So we try to transfer part of their way to manage some of the least FTA Sue.

Speaker Change: Order to be efficient on the cost so the cost for me our fundamental what we should not be replicating some mistake, we've done in 2010 by being driven more than volume and value. So managing your costs until you have to look too different options. Our teams love to operate so we want to operate but does it means that we owned all the Liza.

Patrick: So we want to operate. But does that mean that we own all the leases? There are alternatives in the market which have been developed. So it's not because we are at $80 that we should forget.

Speaker Change: And it's easy to market, which have been developed so it's not because we are at 80. The law, we shouldn't forget that so we are working on it.

Patrick: So, if I have to choose sometimes, I will prefer to delay because the oil will not disappear. If I need to delay a project...

Speaker Change: So if I have to choose sometimes we'd prefer to delays or oil will not disappear.

Speaker Change: Well, if I need to delay a project we can.

Patrick: Weekend Week. Kim, Thank you. I had a follow-up question on hydrogen. I was wondering in which parts of the world you're seeing the most attractive bids on your 500,000-ton green hydrogen tender. And I seem to remember your comments in New York a few months ago were a lot less positive on hydrogen back then. And then my second question is on short-cycle upstream capex. I see it's $1.5 billion this year. Is that an increase on the previous run rate of about $1 billion, or is it about the same? And is there enough runway to continue with this level of short-cycle activity going forward? Thank you for the second question, because I forgot to comment on it.

Speaker Change: Wait a little.

Speaker Change: Can we.

Kim.

Speaker Change: Alright, Thanks, Thank you and I had a follow up on hydrogen.

Speaker Change: Wondering in which parts of the world Youre seeing the most attractive bids on your 500000 ton Green hydrogen 10 day and I seem to remember you comments in New York, a few months ago, we're not less positive on hydrogen back then and.

Speaker Change: And then my second question is on short cycle upstream Capex I see it's $1 $5 billion. This year is it an increase on the previous run rate is about 1 billion or is it about the same and is there enough runway to continue with this level of short cycle activity going forward. Thank you for the second question because I forgot to comment on this slide that we're full message where it will get one so thank you.

Patrick: On this slide, there were four messages, so I forgot one. So, thank you. No, it's not an increase. We keep this flexibility. I mentioned $1.5 to $2.

Speaker Change: No we no it's not an increase we keep this flexibility I mentioned, one five to two it's a good way either to arbitrate. If we have to be viewpoint suddenly we have another COVID-19 epidemic, we shed on hook up and Debbie I don't hope no. We have that in fact positively it's more no. We just announced I think all of it.

Patrick: It's a good way to arbitrate if suddenly we have another COVID epidemic, which I don't hope, a pandemic, I don't hope. No, we have that. In fact, positively, it's more – no, we just announced, I think, tomorrow that we put ACPO West into production in Nigeria. It's typically the type of tieback that we have been able to do, deciding one year ago, one year and a half ago, and putting it into production, benefiting from a high price. So it's – I think we have in our portfolio either in Nigeria or Angola, but also in the North Sea on Kulane, for example, on Afghanistan in Denmark. And also, by the way, we have some few shares in our production in Argentina or in the U.S. So we can make this type of short cycle.

Tomorrow V or could we put into production Apple West in Nigeria. It typically is a type of tie back, which we have been able to do deciding that one year ago. When you land, one fugu and to put it into production benefiting from a high price. So it's I think.

Speaker Change: We have in our portfolio either in Nigeria, Angola, but also in the North Sea on the unclaimed for example on the offer that in Denmark and also by the way we have some few Shirley no production in Argentina and are in the U S. We can make these type of short cycle, So we decided but.

Patrick: So we decided that we need to have $1.5 to $2 billion in short cycle every year in order, in case of, again, a crash, to be able to arbitrate. And also, today, it's a more positive way to benefit from a good price. So they are very profitable. They are profitable at $50.

Speaker Change: We need to have 1.5 dollars 2 billion of short cycle, where every year in the in case of again, our cash to be able to arbitrate and also today is more positive way to benefit from a good price. So we are very profitable profitable at 50 of course, when you launch a quest of his prediction at $80.

Patrick: Of course, when we launch ACPO West, this production at $80 is very profitable. So this is very important in the way we appreciate keeping this flexibility. Radio.

Speaker Change: Profitability is very high. So this is very important in the way we appreciate to keep this flexibility.

Speaker Change: We mentioned in the September now on nitrogen Dunton, I mean, I'm still on the VAT.

Patrick: In fact, all that is linked to... Where is the demand? The demand exists in Europe, and we are a refiner in Europe, because there is a policy, which is quite a complex one, where you have some ETS advantage on credit when you are, I would say, using green hydrogen in your refined product. So as we are paying quite a high and increased CO2 burden in Europe, you can find a way to not only promote green hydrogen but to have some credit so it makes things economically viable. Again, it's completely linked to this framework, the European framework. Is there today a demand for green hydrogen as such without this type of framework?

Speaker Change: In fact, all of that is linked to.

Speaker Change: Where is the demand the demand exists in Europe, and we are refining our in Europe, because there is a policy, which is quite a complex one where you have some ETS advantage from credits.

Speaker Change: When you are a I would say using green hydrogen in your in your refined products. So as we are being quite high and we didn't need.

Speaker Change: He used to build in Europe, you can find a way to not only promote green hydrogen, but having some credit. So it makes sense economically viable again is torn PT linked to a visa a framework of European framework is.

Speaker Change: Is there to the demand for green hydrogen is itself we voted to these type of framework known entities know so that's why you have more supply than demand. So a question for US is today I had mentioned the volume will see what will be the price at which we can be delivered knowing what we don't want the ammonia, we want hydrogen which is our returns.

Patrick: No. The reality is no. That's why you have more supply than demand. The question for us is today, I mentioned the volume, and we'll see what the price at which we can be delivered is, knowing that we don't want ammonia, we want hydrogen, which is a little... We have to... Transform ammonia Where does it come from? At the end of the day, my view is that it will mainly come from... a local European producer, yours. That would be a Mickey.

Speaker Change: You have to.

Speaker Change: To transform ammonia average where does it come from at the end of the day My Jewish but it will mainly come from.

Speaker Change: Local European Paul.

<unk>.

Speaker Change: You wish you well.

Patrick: It's not so easy to manage all these things. We'll see because there is also some uncertainty because the regulation, for example, in the U.S. is not fully, completely approved. So is green hydrogen produced in the U.S. exactly acceptable as green hydrogen in Europe? There is a regulatory debate. That's one of the debates. We also know that there are some big plants being built in the Middle East. So for me, it's a good way to see at which price they can deliver these volumes to Europe. So we cannot say you more because we are working on it. It will probably take six months to better qualify them, but we are working actively, and you have different types of producers. You have the large hydrogen producers, but you also have a lot of developers, so we are looking at that, and we will give you more information. I know a lot of people are looking at our tender to better understand where the market is, so we will give more information when we have it. But we'll not get it at $3 per kilogram. But under six, it will be okay.

Would be a mix.

Speaker Change: It's not so easy to manage or visa, we'd see because there are also so there's some uncertainty because the regulation for example in the U S.

Speaker Change: Judy completely approved so easy green hydrogen produced in the U S exactly acceptable and agreed as a green hydrogen in Europe. There is early regulatory debates that's.

Speaker Change: That's one of the debate, we also know that the awesome big plants being built in the middle East. So for me it's a good.

Speaker Change: Where do you see it which surprised they can deliver these volumes to Europe.

Speaker Change: So we we cannot we cannot say you more because we receive all of this we are working on HIV. It would take six months probably to better quantify them, but we are working actively in and you have different type of producers who have the large hydrogen producers, but you have also a lot of developers. So we are we are looking to vet.

Speaker Change: Uh huh.

Speaker Change: And we will give you more information I know a lot of people are looking to all tinder to better understand where he's a market. So we'll give more information when we would have been.

Speaker Change: We'll not get it to twiddle, a paquito gum.

Speaker Change: Hmm.

Speaker Change: But and under six it would be okay.

Patrick: We'll see if they find the channel. Okay, maybe one of the last ones, Bertrand. Yeah, Bertrand Hodee, Kepler Chevrolet.

Speaker Change: We see a very finds a challenge.

Speaker Change: Yeah, the last one that Paul.

Speaker Change: Yeah.

Speaker Change: That's holiday kept US you really have two small questions left.

Patrick: I have two small questions left. Can you update us on the progress you're making on your Oman LNG bankering project and how this project is innovative, if I remember well, is fully electrified. And the second question is about Shell SPDC's exit.

Speaker Change: Can you update.

Speaker Change: As on the progress you're making on your Oh man LNG Bunkering.

Speaker Change: Project.

Speaker Change: And how this project is.

Speaker Change: Innovative Ah if I remember well, it's yes. It is.

Speaker Change: Is fully electrify and the second question is on shell S. P. D C exit.

Patrick: In Nigeria, I haven't seen any press release from Total following that decision. I assume that you will exit as well. Can we assume it is under the same terms, or is there other negotiation that needs to be done for TotalEnergies too? No, no, we are on the same way. We want to keep control of the... We have the difficulty of being... The oil part we want to exhibit, but we have gas. The gas resource needs to be... is very important for the expansion of energy.

Speaker Change: In Nigeria, I haven't seen any quest.

Speaker Change: Press release from the town following that decision I assume that you will exit as well.

Speaker Change: Can we assume it is and it is the same.

Speaker Change: Same terms or is there or the negotiations that needs to be too.

To be down for total to north.

Speaker Change: Italian hershey's too long.

Speaker Change: No. We are on the same way, we want to keep the control of the we had the difficulty to be.

Speaker Change: One part we want to exit, but we have the gas the gas resource needs to be.

Speaker Change: A very important for the expansion of an energy so we need to find a way to be sure that the gas is developed so I think so shell scheme, which is in fact to create two sort of SPV for the gas where we'd keeps you couldnt be twice, but to cost as well as a good scheme.

Patrick: So we need to find a way to be sure that the gas is developed. So I think the Shell scheme, which is in fact to create a sort of SPV for the gas, but we keep the economic rights, but the cost as well, is a good scheme. The difficulty is that SPDC, the company, is super complex to carve out.

Speaker Change: The difficulty case that is PTC as a company it should be a complex carve out you know the idea initially was to carve outs of gas license. It's a super complex in the Nigerian system. So we have to be more innovative to do that but fundamentally are the exit is clear.

Patrick: You know, the idea initially was to carve out the gas license. It's super complex in the Nigerian system, so we have to be more innovative to do that. But fundamentally, the exit is clear.

Patrick: And we'll probably be able to announce what we do soon. But we are aligned. Thank you all, because in the Nigerian system, most of the value is in the downstream, not in the upstream. This is where today we have some disconnect with some of our partners, but we are aligned on this. Fundamentally, because producing this oil in the Niger Delta is not in line with our HSE policies. You know, it's a real difficulty.

Speaker Change: And we will be able probably to announce soon what we do but we are aligned the.

Speaker Change: The same human shell to try to maintain in this P. D on the gas and it's aligned with the N P C.

I would say a G M D.

Speaker Change: They want to and again, it's consistent we cannot launch a new train and then a N G and not taking care of you from Gaza relying on others, we will never manage that because in the nausea and system. Most of the value is in the downstream multiple if you can frame. This is where today. We have some disconnect. We some of our partners, but we outlined them fundamentally because.

Patrick: We have some bias, but we want to put that in order. And we were waiting to see. We wanted to respect Cheryl first before moving on. We've been in communication with the Nigerian authorities because, at the end, we need their approval. So I went to Nigeria and to Lagos, we discussed, and we want to do that in... I would say in partnership, not aggressively. If you are aggressive, they can't stop you.

Speaker Change: What are you seeing these oil in the Niger Delta Delta is not in line, we will HSE policies you know, it's it's real difficulty so.

Speaker Change: We have somebody who's, but we want to put right in order and we were waiting to see.

Speaker Change: We wanted to respect shelters before to move ourselves.

Speaker Change: We've in connection with the Nigerian authorities because at the end we need to go up.

Speaker Change: So I went to Nigeria and to Lagos, we discussed and we want to do that in Oh.

Speaker Change: I would say in partnership not aggressively if you are aggressive they can stop you.

Speaker Change: They have the rights are not been information so we want to do that.

Speaker Change: And good intelligence with the natural uniformity.

Speaker Change: Oh Gee you are the one who photo is very carefully.

We have to take in a 24 do we push it or not the attitude that we have that option of crews and one which are good and attractive option.

Patrick: We have the right to not many submissions, so we want to do that in good intelligence with the Nigerian authorities. Thank you very much. We will do that as well in connection with the Omani authorities. Maybe I can look at it with a very small one.

Speaker Change: But a man as of our clients as well to develop another train on Oman LNG. So there is a debate of allocation of the guests today.

Speaker Change: We will do that as well in connection with V or menu for it is.

Speaker Change: Maybe you can look these are very small one it's a follow up on <unk> 90, a share on train seven do you believe there will be enough gas.

Patrick: It's a follow-up on Nigeria on Train 7. Do you believe there will be enough gas? Or the other way to say that is that the plant will be delayed if there is no enough gas. And when do you anticipate Train 7 in Nigeria to start? I think I answered you in my previous answer. It's part of the story of the gas phase.

Speaker Change: Oh.

Speaker Change: The other way to say that is that the plant will be delayed if there is no enough gas and when do you anticipate.

Speaker Change: Train seven.

Speaker Change: In Nigeria to startup.

Speaker Change: I think answer to you in my previous answer.

Speaker Change: It.

Speaker Change: It's part of the story of the gas phase.

Patrick: I said clearly to my colleagues and to Nigeria, it would be crazy to have a train with no gas. So I want the gas. But the gas is part of all this development, and, Okay, that's one of the complex... We are working actively on this one. Okay, I think we... We have recovered everything? Yes. So it's exactly 11.45.

Speaker Change: I said clearly two of my colleagues and to nausea, as we'd be crazy to ever try and we've no guests who want to guess.

Speaker Change: But the gas is part of all these developments.

Speaker Change: And.

Speaker Change: Okay, that's one of the complexities.

Speaker Change: Yeah.

Speaker Change: We are working actively on this one.

Speaker Change: Okay I think we.

Speaker Change: We are we covered everything yes.

Speaker Change: Yes, so its exactly 11 45.

Patrick: I know that we have our Norwegian friends this afternoon in London, but you will rush to listen to our... No, no, but we are in good connection. You know, we have put our sequence before earlier this morning. We asked you to come in order not to have any overlap. So we'll take care of you. So it's... The two teams are connecting regularly in order to organize it for you. So thank you for your attendance this morning. Thank you for...

Speaker Change: No, but we have all Norwegian friends to this afternoon in London.

Speaker Change: We rushed to actually send to all.

Speaker Change: One of it we are in good connection. So now we have put a sequence before earlier. This morning, we ask you to come in or not to have any overlap. So we take care of you. So it's a Jupiter two teams are connecting regularly in order to organize it for you. So thank you for your attendance. This morning. Thank you for I think you know.

I think, you know, honestly, as a conclusion, I would say we have a clear strategy. We are consistent in terms of execution. We don't change.

Speaker Change: Honesty as a conclusion I would say we have a clear strategy. We are consistent in terms of execution. We don't change I think is a clear message that I think in visa energy business, maybe because I'm. Therefore, 10 years and for some years. My lesson is let's be a take on what you think.

I think it's a clear message. And I think in this energy business, maybe because I've been there for 10 years and for some years, my lesson is, let's be... Think about what you think.

And including in the distribution policies, try to establish a clear framework rather than moving around permanently. I think it took time for me to understand it, but now I'm there, and I'm sticking with it. So maybe for hedge funds, it's not a lot of fun, but for long-term shareholders, it's a lot of fun. It's better. And we are more targeting this type of shoulder for making these companies a success. Thank you.

Speaker Change: And including in the distribution policy is try to establish a clear framework rather than moving your own permanently.

Speaker Change: Think of it took time to meet to understand it but no I'm, there and I'm thinking on it. So it may be a for the hedge funds, it's not a lot of fun, but for long term shareholders is a lot of fun, it's better and we are more targeting this type of show orders for making these companies a success. Thank you.