Q1 2024 TotalEnergies SE Earnings Call

Ladies and gentlemen, and welcome to total energy third quarter 2024 results Conference call I now and do you over to Mr. Patrick <unk>, Chairman and CEO and jumped yeah staff CFO will lead you through this cool surplus. Please go ahead.

Operator: Welcome to TotalEnergies' after 2024 results conference call. I now end it.

Patrick Pouyanné: Patrick Pouyanné, Chairman, Jean-Pierre Speer [inaudible] Good morning and good afternoon, everyone, for this quarterly results session. I'm happy to welcome you here together with Jean-Pierre, who will go through all the details of these good or strong results in the first quarter of 2024. But before I do it, I would like to highlight the way we have implemented our two-pillar strategy during this quarter, to celebrate these achievements, and to recognize that the company celebrated its 100th anniversary on March 28th.

Ed.

Patrick: Good morning, and good afternoon, everyone.

Ed: We're already one for <unk>.

Ed: It triggers a.

Ed: Session I'm happy to where it can be used together all of these are resolved.

Ed: We'll go who are already there. So these are.

Ed: Good postponed resolves so.

Ed: In first quarter 'twenty, we spent before but before to do it I would like to highlight.

Ed: So the way we have implemented a lot of sweat that you're doing this for two answers.

Ed: To celebrate cities, so recognized but its a comprehensive rate. Its one other you anniversary on March 28, we have.

Patrick Pouyanné: We have been celebrating this event all over the company in 120 countries where we are present. Our company's ancestors were really pioneers when they discovered oil in Iraq in 1927, and of course, this anniversary was the opportunity, to pay tribute to the hundreds of thousands of pioneers who had followed them, and we are, in fact, past and present employees of the company, and we have decided, by the way, that the signature of Visionary History would be pioneers for 100 years.

Ed: So what do you think this event or for as a company and 120 countries, where we are present.

Ed: We have Oh, we have a company's ancestors, who the buyer is when they discover the order in Iraq in 1927.

Ed: And of course, it was Europe.

Ed: Fortunately the T v's anniversary to pay tribute to the hundreds of thousands of player and is worth photos.

Ed: Then and well influx of Boston presents employees of the company and the.

Ed: We haven't decided because we've had this signature is underway. So it would be by your need is for 100 years.

Ed: So, but today I would say is with the same spirit, but we decided in 'twenty to 'twenty two embarking on a transition.

Patrick Pouyanné: So, but today I would say with the same pioneer spirit that we have decided in 2020 to embark on our journey in the energy transition and to move to TotalEnergies as an integrated multi-energy company with a clear and simple strategy anchored on two pillars. First on oil and gas by energy. [inaudible] So this first quarter of 2024 is really about advancing this strategy. I would say we are off to a great start on both pillars.

Ed: And moving to that energy into an integrated <unk> company with a clear and simple strategy and Gordon to below.

Ed: First on oil and gas and LNG.

Ed: With the objective to continue producing hydrocarbons in a responsible way producing in Kuwait hydrocarbons.

Ed: Before we know that's where sales are growing demand and so again investing in developing integrated power energia for the future.

Ed: Object is to become a net cash proceeds either by 2020.

Ed: So this first with the 'twenty 'twenty four is really a drink with us it's always about advancing with your strategy.

Ed: I would say we are off to a great start on both the loss.

Patrick Pouyanné: We have achieved several milestones during this quarter that I would like to underline. First, on the oil upstream. We successfully started up some operational operations in Nigeria with ACPO West and TIRA with development in Denmark, both of which are additive to overall corporate cash margins, as well as Miro II in Brazil, which started at the beginning of the year. We continue to have success on the exploration appraisal front. We recently finished the positive appraisal of the Venus Oil Discovery in Namibia, and we are now working towards FID targeting N2025 for the FID. We have also captured in these prolific orange basins some new licenses of high interest on the South African side.

Ed: We have achieved several milestones during this quarter, but I would like to underline here.

Ed: First on the upstream.

Ed: Shrimp.

We successfully started up some.

Ed: These operations and made sure that we've got for West and the <unk> development in Denmark.

Ed: Both of which are additive to overall corporate cash margins as well as Mero two wind brought theater, which started at the beginning of the year.

Ed: We continue to have success on the exploration appraisal, France, we if it gets sent to the finish.

Supposedly by praise all of the Venus Discovery zone.

Ed: And we all know working towards if I E. It's a good thing in 'twenty 'twenty five for me if I E.

Ed: We are also captures and vs prolific arranged basin some new licensees are buying into it on the South African side.

Patrick Pouyanné: We are also making, it's important, I told you it's a matter of execution or growth towards 2028. So we are also making good progress on some FIDs which we have planned for 2024. We will sanction this month of May the Camino project in Angola, 80,000 volts per day, operated by us at 40%. And we also plan in May to first place the LLI orders for our Suriname project. And we confirm that we expect to take the FID before year-end 2024 in Suriname.

Ed: We are making all saw its important.

Ed: So where do we submitted all of execution no golf towards 2028. So we are also making good progress on May <unk>, which were planned for 2024.

Ed: The sanctions.

Ed: This month of May is it Kevin Youll projects in Angola.

Ed: 80000 Boe per day operated by US with 40% and we also plan in May to first took place in July.

Orders for Suriname, our projects.

Ed: And we confirm that we envisage.

Ed: And this is to take the Friday before year end, 'twenty 'twenty four and Suriname.

Patrick Pouyanné: Finally, I would also like to comment that we've done an interesting deal recently in Congo to increase our interest in a giant deep-water film ore and divested at the same time some very mature assets. That's for oil.

Ed: Finally, I would like also to comment that we've even done an interesting theater, we sent in Congo to increase our interest into where it's Andy puts us even more and divested at seven seven times, some very mature assets.

Ed: That's for oil.

Patrick Pouyanné: On the energy side, quite a bit of activity as well during the quarter. First, we began to benefit from low and re-up trading below $2 per million BTU to see some opportunities to integrate, further integrate our US energy value chain upstream with the first acquisitions from Lewis Energy Group's subsidiary oil and gas assets in the Eagle Ford, operated by a strong operator, EOG. Earlier this week, we announced the FID of the MARSA energy project in Oman, which is really setting a new low carbon intensity standard for the next generation of energy plants. Three kilograms of CO2 per barrel, fully electrified, and the electricity coming from renewable sources.

Ed: Besides quite a big activity as well during the quarter.

Ed: First we can begin to benefit from a little under rehab food trading below $2.

Ed: Good to see some opportunities to integrate integrate so U S. LNG value chain upstream. We've at first acquisitions are formerly with synergies whoops. It says that we've got assets in the Eagle Ford operated by you just won't go Porretto EOG.

Ed: Earlier this week, we announced five year Masa LNG project in Oman, which is really a setting a new low carbon intensity stand up for the next generation of LNG plants, we could have of.

Ed: C O two per BOE were $48, five and DXP should be coming from our <unk> and it's a very good example of that and as you probably didn't get disintegrated, Michigan as you model into cans, we thanks to bed strategy with each of new scale in Oman.

Patrick Pouyanné: And it's a very good example of TotalEnergies deploying its integrated multi-energy model in the country. Thanks to that strategy, we reached a new scale in Oman, combining energy and renewables, or the two pillars. So it's a good example, again, of what we can achieve by moving on the two pillars.

Ed: Combining LNG and renewables or to build out. So it's good example, again of what we can achieve by moving on to <unk> on that and I would also insist, but we continue to work with Asian buyers, which have some appetite for medium and long term contracts.

Patrick Pouyanné: On energy, I would also insist that we continue to work with Asian buyers, who have some appetite for medium and long-term contracts. And I would say all linked, long-term contracts, which is important, of course, in particular. For example, this quarter, we signed a contract with Simcorp in Singapore, beginning 2027, just perfect when we have more production. And to cover it, I would say, or to edge it with some all-linked contracts, that's the target. And there will be more to come as our teams are quite active on the Asian fronts, China, Japan, Korea.

Ed: And I would say oil linked long term contracts, which is important of course in particular for example, this quarter, we signed a contract with <unk> book in Singapore, beginning 2027, just the effect when we'd have more production.

Ed: And to cover it I would say all two exits with some oil linked comstock.

Ed: Targets have always been more to come as our teams are quite active on the Asian, France.

China, Japan Korea. So we are working of course its important we have a strong LNG position and we know we have some perspectives too.

Patrick Pouyanné: So we are working, of course, it's important. We have a strong energy position. And we know, we have some perspective to sign some all-linked energy contracts is part of our strategy. And lastly, I would also mention on the integrated gas part that we have. We are acquiring the whole of Sapura OMV in Malaysia. This is a gas business related to the netback of energy pricing with quite a good potential to increase. In fact, there is quite a... Sarawak is a prolific gas region with some potential to grow in the future.

Ed: <unk> signed some already linked LNG contract is on profitable strategy.

Ed: And lastly, I would also mention on the integrated gas part of it we have we.

Ed: We are acquiring as a rule of separate ROE V and VI in Asia. This is a gas business related to a netback of LNG pricing with quite a good potential to increase and in fact, it's quite to be.

Ed: What do you think so all work is at 46 gas region with some potential to grow in the future. If thats why were very interested to acquire these assets.

Patrick Pouyanné: That's why we were interested in acquiring this asset. Then, moving to the second penal integrated power plant, we have again... For the fourth time, fourth quarter in a row, an increasing adjusted net result operating income, and Jean-Pierre will come back on that. As you notice, we have implemented, we are an advanced implementation of the integrated strategy in Texas on the airport with acquisition, and closing the acquisition of 1.5 gigawatt CCGTs, and that's good. The demand is growing in Texas for data centers, and AI.

Ed: Then moving to the Cigna integrated power, we have again full.

Ed: <unk> fourth quarter, two into or an increase in adjusted net income operating income and Raphael will come back on it.

Ed: No. This we have implemented we are advanced implementation of the integrated strategy in Texas on the S curve.

Ed: Acquisition closing the acquisition of 1.5 gigahertz <unk> and a.

Ed: But good the demand is moving and takes us.

Ed: The centers.

Patrick Pouyanné: We are right on the good market there and also in Germany, which is another key market for us. We closed the KION Energy acquisition, which is a battery storage developer. So, you will see through the results that the relevance of our strategy continues to be demonstrated quarter after quarter, as a proof of concept that our differentiating model works.

Speaker Change: All right sounds a good market there and also in Germany, which is another key market for US we've we closed the.

Speaker Change: The acquisition, which is a better or we still just storage developer so you're going to see if it was all reserves, but this was the relevance of our strategy continues to be the most risky good for coach off so quickly.

Speaker Change: As a proof of concept that's all differentiation model works.

Patrick Pouyanné: Delivering strong results, which are fundamentals that allow us to grow our shareholder distribution in a sustainable way. We confirm again that we have increased the interim dividend by 7% compared to last year, which I think will be appreciated by all our shareholders. And by the way, this proof of concept is also starting to pay off, as we can observe the positive evolution of the share price recently, which is, in our view, and in the view of the board, a signal that this strategy is being increasingly recognized by the market as a good one or the right one, and also evident by their leading total shareholder.

Speaker Change: Delivering strong results, which are fundamentals that at all.

Speaker Change: Oh Super Wal shareholder distribution and assistant at Broadway, we confirmed again, but we increased the dividend by 7% compared to last year.

Speaker Change: Which I think would be appreciated by all of our shareholders and by the way. It's also a proof of concept is starting to pay off as we kind of sales of positive evolution of the share price or simply which she's on the all viewing the view of the boards of signal, but as Patrick D is being increasingly recognized by the market.

Speaker Change: As a good one or the right one and also represents buys or leading total shareholder return.

Patrick Pouyanné: Finally, this value is not only shared with our shareholders but also with the pioneers of TotalEnergies, and it's important for promoting employee shareholding plans. We are now the number one company in terms of the amount of capital owned by employees, more than 11 billion euros, and a special grant of 100 shares to each of our 100,000 employees has been decided by the board to celebrate our 100th year anniversary.

Speaker Change: Primarily this value is not only shared with all shareholders, but also a visit by you and your use of society and energies and it's important who promoting employees' surety plans. We are now in Europe as the number one company in terms of amount of capital one by Emperor Mobile and even video Bureau, and official granted.

Speaker Change: One of the shifts sweet cheap again.

Speaker Change: One of his father and employees has been decided by the board to celebrate our one year anniversary.

Patrick Pouyanné: So I don't know if we'll have $100 billion in results, Jean-Pierre, but not yet. So then, with that, I'll turn it over to Jean-Pierre. That was a transition to go through the first quarter's little financial results. Thank you, and good morning, good afternoon, everyone.

Speaker Change: So I don't know if we were a $100 billion preserve sop, yet but <unk>.

Speaker Change: So then are we at that time, Tony Tavis resolved yeah. That's what does it transition to golf courses detailed financial of this first quarter. Thank you and good morning, and good afternoon everyone.

Jean-Pierre: So, as Patrick mentioned, our consistent strategy continues to deliver strong results, and we are well positioned to deliver on our 24 objectives of more energy, less emissions, and growing... Brand prices were flat quarter to quarter, down only 1% to $83 per barrel, and refining margins were strong, plus 36% quarter to quarter. But European gas prices declined by 35%, reflecting a mild winter and high storage levels.

Tony Tavis: Patrik mentions our consistent strategy continues to deliver strong results and we are well positioned to deliver on our 2004 objectives of more energy less emissions and growing.

Tony Tavis: Brent prices were flat, what's up with that.

Tony Tavis: On the 1% to 83.

Speaker Change: Good afternoon.

Tony Tavis: Refining margin restaurant, plus 36% quarter to put us that's European gas prices declined <unk>, 5%, reflecting.

Tony Tavis: Winter and high storage levels.

Jean-Pierre: In this context, TotalEnergies reported first quarter 2014 adjusted net income of $5.1 billion, only down 2% since, and cash flow from operations, including working capital, of 8.2 billion dollars. Profitability remains strong with return on average capital employed of 16.5%, and we maintain discipline, confirming net investment guidance of $17-18 billion for 2021. Importantly, we continue to extend our track record of attractive shareholder distribution with $2 billion of buybacks executed in the first quarter and nearly a 7% increase year-on-year of the first interim dividend for 2024, which is now up 20% compared to pre-COVID levels. Moving now to the business segment results, starting with hydrocarbon. Production was 2.46 million barrels of oil equivalent per day in the first quarter of 24, stable quarter to quarter and up 1.2% excluding Canada.

Tony Tavis: In this context, because they didn't even reported first we'll definitely Q4 adjusted net income of <unk>, one 1 billion, but up and down.

Tony Tavis: 2% of sequencing.

Tony Tavis: Cash flow from operation, excluding working cap of $8 2 billion, though.

Tony Tavis: Hope you Debbie you remained strong with retail on an average capital employed of 16, 6% and we maintain discipline concerning net investment guidance.

Tony Tavis: 17 to 18 billion, but up slightly before.

Tony Tavis: Importantly, we continue to extend our track record of attractive shareholder distribution.

Tony Tavis: Well think about six EQT can give me the first quarter and nearly a 7% increase year on year.

Tony Tavis: Killing Eve, Doug for 24, which is now at 20% goes back to pre COVID-19 level.

Tony Tavis: Moving now to the business segment results and starting with hydrocarbons.

Tony Tavis: Churn was 2.6 media affiliate, if we didn't build it into the physical jetblue before stable quarter to quarter.

Tony Tavis: One 2% excluding Canada.

Jean-Pierre: Production benefitted from oil start-ups at Merutu in deep offshore Brazil and Agpo West in Nigeria, as well as 6% growth quarter-to-quarter in LNG production, which helped offset the Canadian oil sands asset disposal that closed in the fourth quarter. Looking forward, production for Q2 2024 is expected to be between 2.4 and 2.45 million barrels of oil equivalent per day and reflects planned maintenance that is partially compensated by the ramp-ups of Beirut in Brazil and Kira in Denmark.

Tony Tavis: So to the extent BTT trip.

Tony Tavis: I mean able to E books already and at worst in Nigeria.

Tony Tavis: The way that 6% growth.

Tony Tavis: In LNG production.

Tony Tavis: Each has upset the Kevin again.

Tony Tavis: Asset disposals that closed in the fourth quarter.

Tony Tavis: Looking now for what's really changed for Q2 'twenty four is expected to be between two four and $2 $45 million.

Tony Tavis: We didn't build it and reflects planned maintenance that is partially compensated by ramp ups of stable between Brazil and <unk> in Denmark.

Jean-Pierre: We reiterate full year 2024 production guidance of 2.4 to 2.5 million barrels of oil equivalent per day, which is 2% growth year-on-year, excluding Canada. Exploration and production reported adjusted net operating income of $2.6 billion and cash flow of $4.5 billion. Also, we continue our leadership as a low-cost producer, with first quarter 2024 upstream production costs at 4.6%. Dolores Paparizou, Moving now to Integrated Elegy. Hydrocarbon production for LNG was strong during the first quarter, up 6% quarter to quarter, thanks to higher availability, mainly added, in Australia and Qatar Energy LNG N2 in Qatar, as well as increased supply of LNG in Nigeria. However, first quarter energy sales decreased by 9% quarter to quarter, partly due to lower demand in Europe, given the mild winter and high inventories.

When you read it just like before production guidance of $2 four to 5 million value of that particularly on the <unk>.

Tony Tavis: Which is 2% growth year on year, excluding Canada.

Tony Tavis: Exploration and production reported adjusted net operating income of $2 6 billion.

Tony Tavis: And get through a full point 5 billion below.

Tony Tavis: Also we continue our leadership as a low cost producer.

Tony Tavis: <unk> first quarter 2000, and for us clean putting should cost.

<unk> six <unk>.

Speaker Change: Bye bye.

Speaker Change: Moving now to integrate your daily hydrogel.

Speaker Change: Thank you Kevin for your chance of LNG were strong during the first quarter.

Speaker Change: Quarter to quarter, thanks to high yield <unk>, mainly igt's.

Speaker Change: Australia and get that LNG into E, Qatar as well as the increased supply of energy in Nigeria.

Speaker Change: However.

Speaker Change: First question I think you said decreased by 9% quarter over quarter.

Speaker Change: Finally, you would learn real demand in Europe, even a mild winter and high inventories.

Jean-Pierre: Volumes also reflected partial downtime in three-port LNG in the US this quarter. Integrated energy-adjusted net operating income was $1.2 billion during the quarter, reflecting lower energy prices, sales, but also low volatility in the market. Cash flow totaled $1.3 billion, impacted by the timing of dividend payments from some of our equity affiliates.

Speaker Change: <unk> actual downtime pre booked LNG in the U S.

Speaker Change: This quarter.

Speaker Change: <unk> net income was one point to begin to that.

Speaker Change: During the quarter, reflecting lower LNG prices says, but also little volatility in the markets.

Speaker Change: Cash flow of $2, one 3 billion, but up in fact keep a tiny of dividend payments from some of our equity ftes.

Jean-Pierre: Given the evolution of oil and gas prices in recent months and the lag effect on price formulas, we anticipate that TotalEnergies' average LNG selling price should be between $9 and $10 per NBTU during the second quarter of 2024. Now moving on to our Integrated Power Business Segment. We are pleased to report that this business continues its profitable growth trajectory, with adjusted net operating income growing sequentially for the fourth quarter in a row, as activity grows. Agency Net Operating Income grew 16% quarter to quarter to more than 600 million dollars and was supported by production growth in both renewable and flexible generation.

Speaker Change: Even the evolution of oil and gas prices in recent months and the lag effect on price formulas, we anticipate that average LNG selling price should be between nine and 10, new btu during in the second quarter of 2004.

Speaker Change: Now moving on our <unk> business segments. We are pleased to report that <unk> continues its positive growth trajectory, we adjust net income growing sequentially for the fourth quarter in Europe.

Speaker Change: Activity growth.

Speaker Change: Adjusted net operating income grew 16% quarter to quarter two more than.

Speaker Change: More than 600 million, but up and what you perceived by production growth in both renewable and flexible generation.

Jean-Pierre: Flexible generation now includes the 1.5 GW CCVT acquisition in Texas, which closed during the quarter, and further enhanced our integrated position to provide clean, firm power in the attractive and growing haircut market. Cash flow from Integrative Power was $692 million for the first quarter, on track to achieve our target of $2.53 billion of cash flow for the full year 2024. Finally, return on average capital employed for the 12-month ending end of March 24, reached 10%. Moving to downstream. The refinery utilization rate for the first quarter of 2024 was stable at close to 80%.

Speaker Change: So flexible looking at Asia as Patrick mentioned now includes the one fact, you get with Strategics equity you said it takes us which closed during the quarter and felt the hands.

Speaker Change: Felicia to pull a clean film power in the attractive and growing F goods markets.

Speaker Change: Cash flow. So let me take Expo was 60.

Speaker Change: 692 million build out for the first quarter on track to achieve our targets of 253 billion of cash fruitful if we up with you.

Speaker Change: Finally return on average capital employed.

Speaker Change: 12 months ending end of March 'twenty four reached 10%.

Moving to downstream the.

The refinery utilization rates for the first quarter of 2004 was stable.

Speaker Change: Close to 80% with the restart of setup in Saudi Arabia, Slovenia plant turnaround during the fourth quarter for Q3, <unk> the impact of an unplanned shutdown at the doors refineries.

Jean-Pierre: With the restart of the setup in Saudi Arabia, following a planned turnaround during the fourth quarter of 2023, offsetting the impact of an unplanned shutdown at the Donge Refinery, LRT, Contributee. LRT reported $960 million of adjusted net operating income in the first quarter of 2024, up 52%, quarter-to-quarter, due to higher refining margins. R.I.C.C.H.O.

Speaker Change: S equaled <unk> beauty.

Speaker Change: 960 millions of dollars that just never been any.

Speaker Change: Subsequent to uplift.

Speaker Change: 52% quarter to quarter due.

Speaker Change: Due to higher refining margins.

Speaker Change: After you get through some of that aging.

Jean-Pierre: for Modernity, from operations excluding working-cap evolutions of $1.3 billion, also increased double digits quarter-to-quarter, although it was impacted by a timing effect in cash dividend payments from equity affiliations. Looking forward now, we anticipate that the Q2, 24 refining utilization rates will increase to around 85% as the Donge refinery progressively restarts and because there are no major turnarounds planned. On marketing and services, this quarter demonstrates the efficiency of the implementation of our value over volume selective strategy, with cash flow from operations increasing by 5% year-on-year to $480 million in the first quarter of 2024, despite a decrease in our sales of petroleum products. At the company level, we reported a working capital bill of $6 billion during the first quarter of 2024.

Speaker Change: Operations, excluding youre looking gaps evolutions of one 3 billion also increased double digits quarter to quarter.

Speaker Change: It was impacted by the timing effect in cash dividend payments growth equity.

Speaker Change: Looking for a while now we anticipate that the Q2 2004 refining utilization rates will increase to around 85% as withdrawals refinery restarts.

Speaker Change: We stopped and because we all know imager Commonwealth plants.

Speaker Change: <unk> this quarter demonstrates the efficiency of the implementation of our value will go through June <unk> strategy with cash flow from operations, increasing by 5% year on year to.

Speaker Change: For the 80 million go out in the subsequent definitely before despite the decrease in our sales of petroleum products.

Speaker Change: At the company level, we reported working capital of 6 million during the first quarter with chalk and the main components behind this figure off first the reversal of the exceptional Lucky get released a 2 billion users.

Jean-Pierre: And the main components behind this figure are, first, the reversal of the exceptional working capital release of $2 billion in the first quarter of 2023, which we highlighted during our last earnings call. Secondly, $1.5 billion related to the effect of higher oil and petroleum product prices on inventories at the end of the first quarter of 2024 compared to the end of 2023, and $2 billion related to seasonal effects, $1 billion related to the seasonal effect on tax liability, and an additional 1 billion dollars related to the seasonal effects on gas and power distribution activities. Earnings at the company level increased to around 10% at the end of the first quarter compared to 5% at the end of last year.

Speaker Change: First quarter of 'twenty, three we highlighted during our last earning call.

Speaker Change: Second the $1 5 billion data.

Speaker Change: Related to the effects of higher oil and petroleum products pipes on inventories at the end of the first quarter FY <unk>.

Speaker Change: Compared to end of 'twenty three.

Speaker Change: To begin the I'll say the notice that $1 billion related to the seasonal effect and Thats, where you have EG and an additional one begins to that related to the seasonal effect on gas and power distribution activities.

Speaker Change: Erie ethical penny level increased to around 10% at the end of the first quarter compared to 5% at the end of last year.

Jean-Pierre: And the just described $6 billion working capital led to a 4% increase in gearing. And the decision we made, given the interest rate environment, to exercise the call at the end of March on a 1.5 billion euro hybrid bond resulted in an additional 1% increase in gearing. Therefore, we expect gearing to structurally range around 7-8% as 2-3% of the current gearing in relative to the Seasonality Impact on Working Cap at the end of the course.

Speaker Change: The just described seeks began looking at beat led to a 4% increase in green and the decision we made even on the interest rate environment to exercise the call end of March on the $1 5 billion Euro IV bowls.

Speaker Change: An additional 1% increase in giving.

Speaker Change: Therefore, we expect gearing to stipulate range around.

Speaker Change: 8% us, 2% to 3% of the cooling and related to seasonality impact on working cap at the end of the quarter.

Jean-Pierre: Our consistent and balanced strategy is paying off, as Patrick mentioned, and the first quarter has positioned us for continued success in 2024. In this context, the Board of Directors of TotalEnergies decided to pay the distribution of the first interim dividend of 0.79€ per share for the fiscal year 2024, representing an increase of close to 7% compared to 2015, and authorize an additional $2 billion of share buybacks for the second quarter of 2020. And with that, I'll turn it over to Q&A.

Speaker Change: Our consistent and balanced strategy is paying off as Patrick mentioned in the first quarter has positioned us for continued success in 2004.

Can you just go back to the board of directors.

Speaker Change: Decided either distribution or with first in theory, <unk> Zero point 79, Europe for sure probably schedule for Q4.

Speaker Change: Representing an increase of close to 7% compared to 2000 fish.

Speaker Change: But there is an additional 2 billion dollar of share buybacks for the second quarter 2004.

Speaker Change: We have debts.

Speaker Change: It's over for Q&A.

Jean-Pierre: Operator, we will now begin the question and answer session. As a reminder, please press 1 on your telephone and wait for your name to be announced. Kindly mute any audio sources while..., please press star 1 if you wish.

Speaker Change: Thank you.

Speaker Change: This is the conference operator.

We'll now begin the question and answer session.

Speaker Change: If you wish to ask a question. Please press star one on your telephone and wait for your name to be announced.

Speaker Change: Please kindly mode any older foresee while asking a question.

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Speaker Change: Please press star one.

Speaker Change: I wish to ask a question.

Christopher Kuplent: The first question is from Chris. Christopher Kuplent with Bank of America, please go ahead, on Networking Capital and your Net Debt Outlook. I think that removes already a few questions, but maybe a broader one, I wanted to just double check with you, Patrick, the political temperature in your assessment as we go into not just AGMs but the idea that petrol prices remain capped, there is talk about windfall taxes, should they be expanded or not? Whether or not there is a plan to tax buybacks?

Speaker Change: The first question is from Chris Christopher Copeland with Bank of America.

Speaker Change: Please go ahead.

Speaker Change: And on on net working capital and your net debt outlook I think that removes already a few questions, but maybe a broader one I wanted to just double check with you Patrick the political temperature in your assessment as we go into not just AGM season.

Speaker Change: But the idea that petrol prices remained capped there is talk about a windfall taxes should they be expanded or not.

Speaker Change: Whether there is a plan to tax buybacks and what your thoughts are in terms of whether Europe has learned its lesson from the energy crisis that we're in or whether it's still a dangerous thing to make too much money as an as an oil and gas company I'll leave at that for you to to go in whichever direction you would like thank you.

Patrick Pouyanné: What are your thoughts in terms of whether Europe has learned its lesson from the energy crisis that we're in? Or whether it's still a dangerous thing to make too much money as an oil and gas company. I'll leave it there for you to go in whichever direction you would like. Thank you, Chris.

Patrick Pouyanné: You know, for sure, European leaders don't want to have, again, a crisis, an energy crisis, over price. You can see that in Europe, not only do you have German farmers and French farmers who are complaining as soon as you try to lift or increase some taxes on the tractors. It's all very clear. We see, by the way, a global political temperature where a lot of people are calling, I would say, for a form not of pause but less regulation linked to the Green Deal, and I think that the next mandate of the European Commission might be more about execution than increasing targets and regulations.

Speaker Change: Okay. Thank you Chris.

Speaker Change: No.

Speaker Change: Sure Bill It is they don't want to have again the crisis on the energy crisis are under price you can see that in Europe without telling me.

Speaker Change: You have the German pharma was the finished farmers who are complaining as soon as we try to lift to increase some taxes on the on the taxes.

Speaker Change: Fewer fewer practices. So it's not a good idea is very clear we see by the way a global political temperature, where lots of people. According I would say for them not to pause but.

Speaker Change: Less regulation linked to the green deal and they we could think that the next mandates of the European Commission might be more about execution than are increasing.

Speaker Change: <unk> targets and.

Speaker Change: And the regulations, but so we're quite pleased sawtimber price, obviously, a pretty sharp.

Patrick Pouyanné: But the price of petroleum, obviously, European leaders can do nothing about it. It's more in the end, but I would say OPEC and OPEC plus, which are, by the way, today probably countries, are probably quite fine with around $90 per barrel. They don't want to go back too high above one another because they don't want to have some impact on customers. So, clearly, the price was pushed up in the last months because of the crisis in the Middle East. But I don't see the fundamentals of the market, as we all know. There are not enough inflows of new supply into the market. The demand continues to go up 1, 1.2%.

Speaker Change: European leaders can do nothing about this is moving beyond the better I would say, Oh, Pik, and OPEC, Bruce, which Pfizer, where today I probably countries are probably quite fine with me, but around $90 a barrel.

Speaker Change: They don't want as well to go back to high above one another because they don't want to have some impact on customers. So purely as a price push was pushed.

Speaker Change: Up in the last months because of the crisis in the middle East but.

Speaker Change: I don't see the fundamentals of the markets as we all know there is not much inflows of new supply in the market demand continued to grow 112%. So my view is that we have a we can expect these price above $80 plus for the year I would say so yeah that's fine.

Patrick Pouyanné: So my view is that we can expect this price above $80, $80 plus for the year, I would say. So we are fine. Having said that, you never know; we have observed some volatility. Windfall tax, no, not windfall tax, but you know there is a principle. We are in a state of law, and you have a territorial principle for taxes. That's very anchored in most of the constitution.

Speaker Change: I think you said that you know you never know we have observed some what I'd said it.

Speaker Change: With four tax node that will for tax. So that's you know a very as a principle.

Speaker Change: And then we have in the state of <unk> and you have a ticket or your principal or for Texas.

Speaker Change: Anchored in more cyclical on the constitution for France. It's in one of those 20 of 33 teach people go countries with tax profit.

Patrick Pouyanné: For France, it's in 120 of 30 treaties with other countries. We tax profits where we are, which we deliver in a safe country, and we cannot be double taxed for the same profits. That's a fundamental principle. So I'm not so sure. I don't think it will come. The point is that, of course, European politicians are looking to what has been done in the U.S. on the 1% tax on buybacks. So honestly, this is music which could cross the Atlantic this year.

Speaker Change: Profits, where we are which we did in the.

Speaker Change: Sage country, and we cannot be double docs for the same profit such as fundamental principle. So that's not so.

Speaker Change: I don't think so calm the points is that a push if you looked in the politicians are looking to what has been done in the U S. On the 1% of tax on the buybacks. So honestly. This is a music which could cross the Atlantic this year.

Patrick Pouyanné: Having said that, honestly, it will share additional profits with our shareholders. And even if we have to pay 1% of 8 billion, it makes it worth it. We should learn from them, and we can cut costs as well, but that's not fair. Only so it's our way to look at it. So globally, I mean, honestly, I think from this perspective, I think you must make the difference between, I would say. All the statements during the European campaign and by politicians and the reality of what is really happening. Very clear. Thank you, Patrick.

Speaker Change: But honestly, if we know change their buyback policy of total synergies.

Speaker Change: Because again to buyback policy.

Speaker Change: Sharing additional deposits be wrong he'll do isn't.

Speaker Change: Even if we have to pick a pay one two cents of 8 billion makes.

Speaker Change: 80 million dollar Euro so I think it's.

Speaker Change: We will absorb it.

Speaker Change: We do not think the arrangement to do it but to be clear.

Speaker Change: Tobacco.

Speaker Change: No the depth in Europe have increased so people are accounts basically look for some additional taxes.

Speaker Change: None of them, we can cut costs as well.

Speaker Change: That's fair or necessarily the right way to look at it.

Speaker Change: So globally I mean honestly I think from this perspective.

Speaker Change: Seek visa we Miss you must makes a difference between the I would say.

Speaker Change: Or is this statement so wingo European campaign in pockets and shared sense of urgency of what <unk> executed.

Christopher Kuplent: Maybe one day we'll see the U.S. companies talking about relisting in the U.S. I'll leave it there. Thanks for your time. Irene.

Speaker Change: Very clear. Thank you Patrick maybe one day, we will see the U S companies that are talking about re listing in Europe, but I'll leave it there. Thanks for your time.

Speaker Change: The next question is from Irene <unk> with Bernstein. Please go ahead.

Irene: Thank you very much good afternoon.

Unknown Attendee: A question on Namibia, if I may. You said, Patrick, you're working on an FID by year-end 25. Can you say what the size of the resource will be for that FID and can you share with us, post your successful appraisal, what you encountered in terms of Reservoir Thickness, Gascat, Flowrate, et cetera? Ryan, you go into details. We pay a lot of money to get this data, and I will not share it publicly with all my colleagues, you know, because we still have a lot of exploration to be done

Irene: Question on the maybe a S. I may you said, Patrick you're working on and that Heidi by year end 'twenty five.

Irene: And can you say what the size of thresholds will be for that and can you share with us prosecute successful appraisal.

Irene: What have you encountered in terms of just.

Irene: Gradually.

Irene: Can is the guess got slow rate and better. Thank you.

Speaker Change: Oh, right and you go to these areas, which we pay a lot of wanted to get these data and I will note shevlin fabricated or my colleagues.

Speaker Change: Because we see that it's quite exploration to be done now in fact today I will not answer by reserves, but they were done. So this is more of a question for us. So as I mentioned as I mentioned, that's a prediction about Po de <unk>.

Unknown Attendee: Now, in fact, today, I will not answer by reserves, but they will answer. Reserves are more a question for us of dimension, the dimension of the production power per day. And it's linked, in fact, like in Suriname, this type of FPSO, they are the parameters; the key parameter would be the volume of gas we need to recycle because there is a GOR.

Speaker Change: It's linked in fact like and certainly not in these type of for SBA soon as they are.

Is the Bom it doesn't keep alamito, we'd be the volume of gas we need to recycle because as you. All so we speak around I would say a developed bonds around between 150000 Boe per day and 100 <unk>. It has to be no film.

Speaker Change: For the reservoir Engineering studies, but also is that all there we have made the account base with Venus knows their priorities to go to production I would say on that.

Patrick Pouyanné: So we speak of, I would say, a development around between 150,000 barrels per day and 18,000. It has to be firmed up through reservoir engineering studies, but all the data are there. We have made a campaign, so Venus knows the priority is to go to production, I would say. And then, of course, Namibia for us, not only that, but because our neighbor has just announced a new discovery in the southern part, we have the equivalent prospect on our side, so we'll drill it. We are acquiring that seismic in order to make the acquisition. So for me, Namibia, it's the first development, and we see others coming behind. But let's explore.

Speaker Change: And then of course are that maybe I've always that's only that because.

Speaker Change: Our neighbor has just announced a new discovery in the <unk>.

Speaker Change: Often box itself, but we have the equivalents plus picked on all sides. So we'll we'll drill it. So we are acquiring that seismic in order to make the.

Speaker Change: The acquisition. So for me, it's the first development that we see others coming behind that so, let's let's explore and as I said as well if we continue to acquire some acreage in particular.

Speaker Change: On the Orange Basin, we have two good licensees perspective licensees on the South African side, which we may drill in 2025, according to the I.

Speaker Change: I would say it was a process of Oh for Ization, which is prevailing in the in South Africa. So that's.

Speaker Change: That's where we also had some good news we have and we will people career, so first to produce oil in Namibia.

Speaker Change: Steve So.

Speaker Change: Yeah, let me be FERC revenue next year.

Speaker Change: So good news I think in the.

Speaker Change: So to answer your technical questions.

First I don't have that that's actually I cannot shut the secret to take a second to be honest.

Patrick Pouyanné: And as I said, as well, we continue to acquire some acreage in particular, in the Orange Basin. We have two good licenses, prospective licenses on the South African side, which we might drill in 2025, according to the, I would say, process of authorization, which is prevailing in South Africa. So that's where we are. So it's good news.

Speaker Change: So again I think if we don't if we speak today about development because that does have a good enough to make a profitable development fitting we brought criteria yeah, which is as you know I spent 20 buildup of Bauer of capex versus opex at or less than $30 per Boe or breakeven.

Speaker Change: Thank you very much.

Speaker Change: The next question is from Chris Tam monarch from J P. Morgan. Please go ahead.

Speaker Change: Hi, good afternoon. Thanks for taking my questions, it's nice to be back on a call.

Speaker Change: Two questions just maybe just first on maybe I mean, I was quite shocked how the scale of the resource in has been increased and as far as the Gallup statement and I say that because I've never seen such a massive move in.

Patrick Pouyanné: We will probably be the first to produce oil in Namibia. That's the objective. So Namibia will have its first development next year. That's the good news, I think. So, to answer your technical questions, first, I don't have the data, so I cannot share the secrets. Second, to be honest, no, I have some.

And instead of the and the way it's been presented.

Speaker Change: The question I have is therefore in the context of your execution plans and your discipline on spend and investments how comfortable are you that as and when you do sanction the F I D.

Unknown Attendee: Second, I think, if we speak today about developments, it's because the data is good enough to make a profitable development, fitting with our criteria, which is, as you know, less than $20 per barrel of CapExpress OPEX or less than $30 per barrel of BrickX. Hi, good afternoon. Thanks for taking my questions. It's nice to be back on the call. Two questions, just maybe first on Namibia. I mean, I was quite shocked how the scale of the resource has been increased as far as the GALP statement is concerned.

Speaker Change: So this when this will stay within your your Capex. So the envelope in terms of both cost per barrel and so on given we've seen this movie before and as far as I can go to when we had major discoveries and then sort of fast forward two three years and.

Speaker Change: It wasn't as easy to get that volume on line for a number of reasons. So that's my first question even.

Speaker Change: Even if you have line of sight on that from now that would be good.

Speaker Change: The second question is there's.

Speaker Change: There's a lot of debate around listings and they sort of find that.

Speaker Change: We can sit and blame everything apart from the actual valuation and why the valuation is where it is whether it's the U S. But the question I have for you Patrick is.

Unknown Attendee: And I say that because I've never seen such a massive move in the way it's being presented. But the question I have is, therefore, in the context of your execution plans and your discipline on spend and investment, how comfortable are you that, as and when you do sanction the FID? you know, sort of this and when, but this will stay within your cafe. [inaudible] At what point do you potentially, in a stronger macro environment, re-emphasize your molecules as far as... Unknown Speaker, Unknown Time, Unknown Speaker, Unknown Place, Unknown Speaker, Unknown Time, Good.

Speaker Change: Electrons versus molecules.

Speaker Change: At what point do you potentially in a stronger macro environment.

Speaker Change: Reemphasize your molecules and as far as.

Patrick Pouyann: The other sort of are tasting capital or investing more capital because it's sweat as far as it sort of strikes me that the quantum of cash flows. The U S may just can deliver versus Europeans.

Patrick Pouyann: The main striking difference so the distinction is this the level of.

Patrick Pouyann: Hydrocarbons as far as oil and the cash flows generated from that but all the energy transitions and a whole lot of debate, but just purely on quantum of cash flow is there anything that would make you reconsider a reallocation of capital. Thank you very much.

Patrick Pouyanné: On the first question, I'm very comfortable with FID in Namibia, first FPSO and the second one, and it will be within the $18 billion framework of capital per year. We can do it. It's profitable. You know, it's not a problem.

Patrick Pouyann: Okay.

Speaker Change: On the first question I'm very comfortable with I D and I mean.

Speaker Change: Firstly, if you saw in the second one and it will be within the $18 billion a framework of capital per year, we can do it it's profitable.

Speaker Change: It's a startup program and our obviously our priority is a big deal and we are you should we should have good oil projects, we've fitting we'd be all criteria that we'd be sanctions. There is no doubt about it but we never arbitrated against oil project in the company and it's why we have it in express.

Patrick Pouyanné: And obviously, our priority, let's be clear, if we have good oil projects fit with your criteria, they will be sanctioned. There is no doubt about it. We have never arbitrated against oil projects in the company, and that's why we express our strategy with two pillars. The first being oil and gas. The second one is, I mean, integrated power, but it's clear.

Speaker Change: <unk> so the first being our oil and gas is signaling one is is.

Speaker Change: I mean.

Speaker Change: Integrated power, but it's a it's clear so no I'm not afraid to have one tool we developments to be done and I think what is good for our company we'd be goodfellow shoulder. So if it's good projects, we will sanction them and we have some space and you know we had been very agile in that.

Patrick Pouyanné: So no, I'm not afraid to have one, two, or three developments to be done in Namibia. I think what is good for our company will be good for the shareholders. So if it's a good project, we will support them. And we have some space.

Speaker Change: Company.

Speaker Change: To arbitrate I prefer to have more options in my portfolio of it's a constant strategy to arbitrate and went to give priority to some of them just administrated it with Moss side N G. We postpone PNG because it costs were too high we sanction.

Patrick Pouyanné: And you know, we have been very agile in the company to arbitrate and to, I prefer to have more options in my portfolio, but a constant strategy. So that's fundamentally what we do. So this one, and if there is more to come, we'll capture it to be clear. By the way, you are right, but I have never seen anybody in 25 years speak about 10 billion barrels with one word or two words.

Speaker Change: Sanction Mossad Engie, an 80% share is so big but it's a profitable because of Capex were in line with our expectations. Obviously the type of options and so I prefer to have too many options to enter we are to be selective on the most profitable ones. Because these will contribute to enhance cash flow per borrower and so was the cash flow.

Speaker Change: Sure I would say so that's fundamentally what we do so at least one of them and you guys more to come we're going to capture it to be clear.

By the way you are right, but they never seen a niche way anybody in 25 year history to speak about them be on borrower with one way at all to west.

Patrick Pouyanné: I mean, so, you know, but the media, the media, so no, no, it's with two words, no, never, but we'll Then on the stock listing, listen, by the way, when you call, it's nice to mention one of the US companies because I was looking at the results, which have just been announced, and they are exactly the same as us. So maybe it's not a matter of molecules or electrons; it's maybe, that's why we are, I mentioned that we could, as we have more and more US shareholders, think about having a clear listing in New York. It is obviously a move on which the board asked me to look at it, because it makes sense.

Speaker Change: So you know but yeah.

Speaker Change: So I know, there's always says we still work.

Speaker Change: Rich.

Then.

Speaker Change: On the stock listing listen Oh by the way when you.

Speaker Change: It's nice to mention one of the U S companies because I was looking through the reserves, which has most of its announced they are exactly the same than us. So maybe it doesn't matter of <unk>. Maybe that's why we are I mentioned, but we do it and as we have more and more U S. Our shareholders.

Speaker Change: Thinking too.

Speaker Change: A clear listing in New York is a QC a move on which the board asked me to look at it because it makes sense. So we see what are we kind of look and I think that's it.

Patrick Pouyanné: So we'll see what we can organize it, but going into the direction of a growing US shareholder base seems to be a nice, normal thinking from a board of directors independently, by the way, of the domiciliation of the company in Europe. That's clear, but that's the first one. I don't think so about the reallocation of capital. No, I don't consider it.

Speaker Change: Going into the direction of our growing U S shareholder base seems to me a nice no more thinking from our board of directors are independent so we have to meet them initiation of the company in Europe. That's.

That's clear, but that's the first one.

Speaker Change: I don't think so.

Speaker Change: He education of capital no I don't consider it I think we I prefer to stick and to be consistent with the strategy I think it does have value in the energy field to have a consistent.

Patrick Pouyanné: I think we prefer to stick to and be consistent with the strategy. I think it has value in the energy field to have a consistent strategy and because we know it's a long-term industry. And if you don't navigate and think, so the integrated power business is going to grow to deliver cash flows; we are on the roadmap to reach 12% and then to be net cash positive. So I don't see why I should suddenly reallocate capital because the price of a barrel of oil is higher.

Speaker Change: Strategy two because we know it's a long time in the industry and if you don't navigate and thinking.

Speaker Change: So the integrated power business is continue to grow to deliver our cash flow as we all know it's mark.

Speaker Change: To the Jewish 12% and then two a M.

Speaker Change: To be net cash positive so I don't see why it should so their need.

Speaker Change: The aggregate capital award because of the oil Bordeaux voyages a year.

Patrick Pouyanné: And again, it's a matter of sticking to a strategy to be selective in terms of projects, including hydrocarbon projects, taking on the low cash, the cash break even of the company, I think it's fundamental, rather than suddenly having another race to volumes, which will not be positive. So I think it's, we are generating as much money as one of the companies you mentioned. So we need to; that's the reality.

Speaker Change: And again, it's a matter of I prefer to stick on the strategy to be selective in terms of.

Speaker Change: Oh, Jackson, including hydrocarbons protest ticking on the and a little cashman for cash as I guess breakeven as a company I think it's fundamental Y O y in southern India.

Speaker Change: The race to volumes, which will that'd be a positive. So I think it's a we are generating as much dollar as one of the companies you mentioned, so we need to but so here. It is a it's not a question of cost of.

Unknown Attendee: So it's not a question, of course, of whether I'm going to be shareholders who are willing to buy energy companies. But over the medium term, there could be a bifurcation of cash flow as their oil volumes grow and others don't. That's what I meant more in the context of if and when prices move higher and there's more volume in oil, is the market starting to look backwards for that in terms of valuing cash flow?

Speaker Change: Portfolio also question fundamentally.

Speaker Change: So I'm finding.

Speaker Change: Going to the shareholders, who are willing to buy energy companies.

Speaker Change: Maybe I'm wrong.

Over the medium term there could be a bifurcation of cash flow is there oil volumes grow and others done that that's what I meant more in the context of if and when prices move higher and there's more volume in oil is the market starting to look solve backwards for that in terms of valuing cashless that that's what I meant more of the medium al Campa to care okay.

Patrick Pouyanné: Okay. Honestly, it will be a good problem if we have more cash flows because the price of oil is going higher, but I will not make the mistake to think that, yes, it's possible. The scenario you described is perfectly possible, Christian, but at the same time, we shouldn't say again, higher forever.

Speaker Change: Honestly it would be a good problem. If we have more cash flows because of partial hold he's going oh, yeah, but I would not make the mistake to think that yes. It's placebo as you described.

It's perfectly possible relocation, but at the same time, we shouldn't don't say you again are you a flavour.

Patrick Pouyanné: That's not true. We know that when the price of oil goes up, then demand will slow, and then exactly the same. It's a typical thing.

Speaker Change: No that's not true I mean, we know about it sort of ties in Nova when price of oil go up when demand will slow and then exactly so typical thing. So we must not forget so there's some soft sorry, I think I said that the best answer I can tell you is that today, we have a very good.

Patrick Pouyanné: We must not forget the essence of the story. Having said that, the best answer I can tell you is that today we have a very good, not a good, a super strong oil and gas business, which allows us to deliver the best return on capital employed around the majors, despite the fact, I don't like the word despite, that we are also investing in integrated power with a lower return. So that means the best question is if we have a portfolio and efficient oil and gas operations. The proof, again, is the cost per barrel. OPEX per barrel is $4.6 per barrel. So that will protect you.

Speaker Change: That's a good ship has shrunk or oil and gas business, which didn't allow us to deliver the best return on capital employed of bonds of majors. Despite the fact I don't like doing well. Despite that we are also investing in the integrated boiler was already doing so that means though is the best question is.

Oh, we have a portfolio and inefficient.

Speaker Change: As operations.

Speaker Change: Again, this will put too easy.

Speaker Change: Is he a cost per barrel opex pub already for $6 a barrel. So that's so we protect you is about where it is the idea we'd make more cash flows for sure because we maintain and we continue to see a visco breakeven so.

Patrick Pouyanné: If the barrel is higher, we'll make more cash flows, for sure, because we maintain and continue to manage these break-evens. It's not only a matter of investment; it's also a matter of portfolio, and quality of the portfolio. Very clear, thank you very much. Thank you and good afternoon.

Speaker Change: It's not only a matter of investments. It's also a matter of portfolio quality of the portfolio.

Speaker Change: Very clear thank you very much.

Speaker Change: The next question is from Lydia <unk> with Barclays. Please go ahead.

Speaker Change: Okay.

Lydia: And get us to name them.

Unknown Attendee: Two questions, if I could, one just to follow up on the US listing. Patrick, I think you said that the board asked you to look at the music. How long would that process take? And ultimately, what would stop you from doing it at this point?

Lydia: Three questions if I could one just to follow up on the thank you walked away from I think he said that the board has asked me to look at.

Lydia: But Nathan I think how long would that take.

Lydia: Hi.

And ultimately what would stop you from doing it at this point and then the second question was on the LNG business like E O N E.

Unknown Attendee: And then the second question was on the LNG business. You talked earlier about the idea of having flexibility within the portfolio. I just wonder if you could talk us through what your outlook is at the moment on the LNG market because, obviously, we've had some projects that have been delayed because of higher costs, but others that are coming in that are very competitive. So just your perspective on that market. Thank you.

Lydia: That be I guess, having flexibility within the portfolio.

Lydia: Wonder if you could talk a screen at the moment.

Lydia: On the LNG market, obviously, we've had some projects I'd be delighted to have high costs, but it does that could again very competitive like gets you a perspective on that market.

Lydia: <unk>.

Patrick Pouyanné: Okay, on the first one, to be clear, the board discussed the board with the board clearly on the matter of U.S. listing. We all agree that we have to seriously look at it, and so we are working on it together with Jean-Pierre, and I plan to report to the board by September, and then we'll see the pragmatic way forward, and we'll come back to you. But we consider that, and I had discussions, by the way, with a number of large shareholders in the U.S. about it, that today, in fact, we have an ADR, which is not a real share.

Speaker Change: Okay on the first one to be clear there was a discussion of the board, which is always a board Kelly on the motto of U S listing.

Speaker Change: We all agree that we have to seriously look at it and so we are working on it together, we jumped yeah and I plan to report to the board by September and then we'd see a program.

Speaker Change: Frankly, I think to move forward and we'll come back to you but.

Speaker Change: We consider that and I had discussions by the way from a number of our large shareholders in the U S about it but.

Speaker Change: Today in fact, we have an ADR, which is not so he'll share they come to buy shares on the Paris market do you have any exchange rates you have to win and when I look to this.

Patrick Pouyanné: They come to buy shares on the Paris market; you have exchange rates, you have to, and when I look at the behavior of the share during each, every day, you know, you have the Paris market, which dictates the share until 3 p.m., and suddenly you have a drop or a hike because New York is leading it, and by the way, the share at the closing in Paris is just the value in New York at 12.

Speaker Change: Behaviour of Zelle share doing it every day you know you have the voice market, we see taking things a share until <unk> P. M and suddenly you have it was also the highest because new York is leading it and by the way is a shell at the closing in Paris is just so value in New York at 12, So all that is not the Asus and under.

Patrick Pouyanné: So all that is not, and on top of it, which is more important, again, we have a, it's clear, but in energy and the oil and gas field, U.S. shareholders are buying the shares, and European shareholders are not so buying in the same way. So I think it's also a recognition of the growing part of the shareholding, and so we must look at it, because again, the goal is to understand why, if there is a way to fill the gap that we see, if we can get easy access to shares to U.S. shareholders.

Speaker Change: Top of it which is more important against the other is clear, but in the energy and European gas field.

Speaker Change: U S shareholders are by English isn't European shareholders are not sold by the same way. So I think it's also with cognition to so growing part of the shareholding and so we must be we must look at it because again the body skin to understand why the feelings of Ics are way too too.

Speaker Change: Fill the gaps that we see.

Speaker Change: If we can get easily easily access to shares to a U S shoulders.

Patrick Pouyanné: So that's where we are, and we'll keep you informed, don't worry, but I think it was time, the right time, to mention it to our investors. On the LNG, well, you know the LNG. I will tell you, I'm positive about 2025-26 because you will not see much new capacity.

Speaker Change: That's where we are and we'll keep you aware 40, but I think it was time to the right time to mention it.

Speaker Change: Due to all to all investors.

Speaker Change: The LNG.

Speaker Change: Angie I would tell you I am positive for 'twenty five 'twenty six because you will not see much new capacities of course like you and all of US we are now even though we observed a 27.

Patrick Pouyanné: Of course, like you and all of us, we are not naive, you know, we observe that from 2027, I'm not mentioning 2026, because some projects will be delayed, you know, I'm sure it's a big project. You will see new capacities coming on stream from the U.S. and from Qatar, so this will have an impact on some of the markets, that's clear. But for 2025-26, the price could be tensioned, since some of the plants, again, [inaudible] not afraid because generally, and it was very well demonstrated by one of our peers, when you have some low cycle energy, they are not very long because generally the demand is very reactive, you know, you have countries, clearly we've seen it this year, in 2023, you've seen more China buyers coming back to the market at $8, $9, $10, under $10, you see China and you will see, if it's dropping to $9, you will see India as well coming, so I think it's positive for the demand and that would be, by the way, something important in this business because somewhere with the events of 2022, customers are a little shy, you know, with this energy which went to the roof, that's why, by the way, they are also interested themselves to sign more oil-related contracts because they see more stability in that oil pricing, that in these gas markets, which has been very volatile, so I think, so again, maybe a lower price, another comment on it because sometimes I'm surprised by some analysis which are reported, you know, energy, one of the interests of energy, like you've seen in the results of Total Energy, is when the price of gas is going down in Europe, we have some amortizer in the energy pricing formula, you know, it's not, we are not a European gas seller, I would say, and so the impact on our revenues, cash flows, and results are much lower because the formula and energy are amortizing these, so I'm, again, we are, I'm not, I'm not worried, I continue to believe that it's a good business to invest because it's a growing demand, because we need gas to produce, to complement the intermittency of electricity, there is a climatization demand in the middle class in Asia, so all that is driving, I would say, electricity demand, part might be covered by coal and renewables, but part also with gas, and you know, a country like India is very interesting, they are building a real gas infrastructure, with big truck lines around the country, city gas is being developed, and so it's a reality, we are investing, by the way, in this business, it's a reality, and I think that's, so a lower price during two, three years might, will be, will give a push to that demand, and when the demand is stored, it's difficult to stop, you know, because then gas becomes your fuel for your house, so that's the perspective I see, but again, we are active in order to, I would say, edge, not edge, it's not the right word, but to sign some medium-term contracts with all related terms. Thank you. Yeah, hi, hello.

Speaker Change: I just mentioned 26, because some projects will be delayed I'm sure Big project, you would have seen new capacities coming on stream from the U S and from Qatar. So this will have an impact on some of the markets that's clear.

Speaker Change: So $25 96 a price.

Speaker Change: It could be 10 shows some of the plants again.

Speaker Change: Uh huh.

Speaker Change: Difficulties versus placebo after that's okay, because we would be good for the demand rebounds. So what we are trying to if we are doing together, we do LNG teams is to sign some oh related media on some contract because the view that we have on this business is that the oil might remain like Vishal question. So.

Speaker Change: So this might be made stronger so that's what we can do and again by the way I'm not afraid because generally and it was very well demonstrated by one of our peers. When you have some road cycling in and out of the Illinois, because generally the demand is very easy access you know you have countries clearly we've seen this year in 2020.

Speaker Change: You've seen more China by us coming back to the market at eight $910 off <unk>.

And all you will see a China and you will see if it is dropping to 90, we see India as well coming so I think it's positive for the demand so and that would be by the way something important in this business because somewhere with the events of 'twenty two.

Speaker Change: <unk> is there a shot you know revisiting energy, which went to the roof. That's why basically they are also interested themselves who signed more oil related contract base, because they see more stability in that or oil pricing, but in these gas market, which has been very volatile. So I think.

Speaker Change: So again, maybe at a lower price than if I never comment on it because sometimes I am surprised by somebody that has the switch off reported.

Speaker Change: And then one of the tourists of LNG like you've seen in the reserves that energy is when the price of gas is going down in Europe, we have somewhat amortize off in the LNG pricing Formula you know it.

Speaker Change: We all know to European gas.

Speaker Change: I would say so.

Speaker Change: Impacts on all revenues cash flows and reserves is much lower because the formula and then G. All monetizing these are for them.

Speaker Change: Again I'm.

Speaker Change: I'm not I'm not worried I continue to believe it is a good business to invest.

Speaker Change: Because it's a growing demand because we need gas to.

Speaker Change: To produce to complement the intermittency of electricity by the privatization demand when in the middle class in Asia, So or what is driving I would say our electricity demand, but might be covered by Gordon when you rewards with Buffalo, So with gas and you look at countries like India. It's really interesting they are building.

Speaker Change: Gas infrastructure with big truck lines and around the country City gas is being developed and so it's a reality we are investing by the way this business up and so he entity and I think that's.

Speaker Change: So the lower price release, two or three years might would be.

Speaker Change: Give a boost to that demand and when the demand is stored it's difficult to.

Speaker Change: Stop because when guests become a yo yo.

Speaker Change: Your fuel for your house, so, but sophisticated IC, but again, we are active in order to I would say edge not edge, that's right whoever to sign some medium some contracts we've already added.

Speaker Change: Tips.

Thank you.

Speaker Change: The next question is from Martijn rats with Morgan Stanley. Please go ahead.

Unknown Attendee: When oil prices are referred to as relatively stable, that does sort of, I find that a very sort of, you know, very interesting comment. But anyway, I had two questions that I wanted to ask. The first is a relatively simple one on buybacks and oil prices. We started the year, of course, with two billion a quarter in buybacks. But I think it's fair to say that oil prices have been, you know, surprising to the upside so far this year. So I was wondering if there is some move in the quarterly buyback, perhaps later this year, if this oil price sticks, and under what conditions we might see sort of a quarterly buyback much higher.

Martijn Rats: Hi, Hello.

Martijn Rats: When oil prices are referred to us relatively stable that does sort of I'd say that I.

I find that of how you sort of.

Martijn Rats: It's very interesting Goldman.

But anyway.

Speaker Change: I have two questions that I wanted to ask.

Speaker Change: The first is a relatively simple one on the buyback and oil prices.

Speaker Change: We started the year of course with 2 billion of quarterly buybacks, but I think it's fair to say that oil prices have been surprising to the upside. So far this year. So I was wondering if there is some move into quarterly buyback. Perhaps later this year. If this oil price stakes and under what conditions, we might see so today I like what he buyback much higher I was hoping you could say if you were somewhat the.

Unknown Attendee: I was hoping you could say a few words on what the prospect of that sort of might be. And then the other one is about the Sapura OMV acquisition. You bought 100% in sort of two tranches.

Speaker Change: All of that.

Speaker Change: It might be and then the other one.

Speaker Change: <unk> is about the support.

Speaker Change: So acquisition you bought 100% instead of two tranches I know, it's not as exciting as now maybe perhaps but it's still an entirety small.

Unknown Attendee: I know it's not as exciting as Namibia, perhaps, but it's not entirely small. I was wondering if you could say a few words about the rationale for that transaction, what the attractions of the assets are, and how it fits in the overall picture. Thank you.

Speaker Change: Wondering if you could say a few words about the rationale of that transaction, what the attractions of the assets or how it fits in the overall picture. Thank you.

Speaker Change: Great.

Patrick Pouyanné: It's a good deal. Even if we don't make a lot of noise, even, you know, I prefer to pick some good assets that fit with the strategy, and the growth potential. And we don't need to start small because, in fact, it's giving us the support of an operating position in Malaysia. We see that as having many advantages. In fact, we have a strong bond with Petronas. Malaysia is, in fact, still a prolific basin for several gas basins, prolific ones.

No its still small so good [laughter] you don't see here, even if you don't make a lot of noise, even no I prefer to pick some good assets, which fits with our strategy with growth potential and we don't have to make some forward because in fact, it's giving us the sucker rod.

Speaker Change: An operating position in Malaysia are we.

Speaker Change: You see that has many advantages in fact that we have as homebound Petronas, Malaysia as if they are in fact still a policy based in the civil guests basis prolific once it's an opportunity to have a material position 50000 barrel per day I think so it's material we can dedicate people we see there beyond the.

Patrick Pouyanné: It's an opportunity to have a material position, 50,000 barrels per day, I think. So it's material, we can dedicate people. We see there, beyond these licenses, more to be done. So I cannot, there is the potential to expand in the gas business. This is a business which is related and which is priced as a net back from LNG. So you have different formulas.

Speaker Change: These licensees more can be done so I cannot.

Speaker Change: Is it puts ensure to expand in the gas business. This is a business, which can related which is priced as a netback for LNG.

Speaker Change: Formula. So it's part of you also have enjoy service business you have some upside in UK correlated.

Patrick Pouyanné: So it's part of the interest of this business too. You have some upside, and you can correlate it. And it's also a way, again, to strengthen the links with Petronas. Malaysia is an interesting location as well for other activities, like, in particular, CO2 storage for Asian buyers.

And so we will get to strengthen the links with versa Lite.

Speaker Change: With Petronas militia users enjoy seeing location as well for other activities like in particular certain storage.

It shouldn't values so it's awesome.

Patrick Pouyanné: So there are some, a lot of Japanese companies are looking into that. So we see, and again, you know, I think for a company of our size, Elo is now in Asia as a strategy, in charge of the Asia strategy. Having more feet in Asia is important for the future. This is where the demand will come from. And Malaysia is an interesting country.

Speaker Change: A lot of Japanese companies are looking to that so we see a.

Speaker Change: And again, you know I think for a company of our size.

Speaker Change: There is no <unk> in Asia is strategy in South Asia strategy, adding more feet in Asia is important for future. This is where the demand will come and the Malaysia and enjoy seeing country.

Patrick Pouyanné: We also have some LNG business, so this was a good opportunity, again, a material one, because what I don't want is to move from a small asset. So this one was, so we were to have that materiality by making all these transactions together.

Speaker Change: Some LNG business so.

Speaker Change: This was a good opportunity again, a material one because what I don't want is to move from a sort of a small asset. So this one was so we worked with that.

Speaker Change: Materiality by making Orbis transaction together.

Patrick Pouyanné: On the buyback, well, okay, I just want you, in fact, to know the answer by asking the question, Martin, I think. You know, when we stated in the press release of the... In February, just reading it, with 2 billion share buybacks in the first quarter of 2014, which will remain the base level for quarterly buybacks in the current environment. I think the current environment in February was more or less $79-$80 per barrel.

Speaker Change: On the buyback well, okay I just want to you in fact newsy on sale by asking as a question Martin I think you know when we stated.

Speaker Change: <unk> of the.

Speaker Change: In February just reading it.

Speaker Change: <unk> 2 billion of share buybacks in the first quarter of 'twenty first which remains a base level for quarterly buybacks in the current environment I think that your rent and realignment in February well Morris 70, $980 a barrel. We continue on this basis, but it's quite clear you know we have been clear about that.

Patrick Pouyanné: We continue on this basis, but it's quite clear, you know, we have been clear about the... cash allocation framework we follow. First the dividend, the capex where we are, and we don't intend to expand it. And we said that we'd use a share buyback if we had more cash flows to share it with shareholders. So again, it was premature this quarter because we have only seen $90 for one month, so I will not conclude that $90 will remain for the year. I know that when I was doing some roadshows in London, people were speaking to me about $100.

Speaker Change: Cash.

Speaker Change: Education framework, we follow first the dividend the Capex, we are where we are and we don't intend to extend them and we said that we would use share buyback to if we have more cash rules to share it with shareholders. So again it was similar to this quarter because we have only seen 94 one months.

Speaker Change: I will not conclude a $90 will remain for the year I know that when I was making some of which was in London people were speaking about one of the law, but in the meantime, so it wasn't 95. It went up to 88 or 89, so it's volatile.

Patrick Pouyanné: But in the meantime, it wasn't $95. It went down to $88 or $89. So it's volatile. To be clear, it's clear in our minds that if we have more cash than the base case, then we look to share it through share buybacks with some shareholders. But we don't have a mathematical formula to give you, so you have to guess.

Speaker Change: It's clear that the in the mine in our mindset.

Speaker Change: If we have more cash spend debate cash then we'll look to share it for share buybacks, we have some shareholders, but we don't have a better metric for Bernard to give you. So you have to guess and again, it's a monitoring we'd see what would be the second quarter and I expect some decision poverty middle of the year or September by the board.

Patrick Pouyanné: And again, it's monitoring; we'll see what the second quarter is, and I expect some decisions probably in the middle of the year or September by the board, when we'll have better visibility of what the execution of the year could be. We have a good balance sheet, so we will not wait until the end of the year to announce what we'll do. But again, let's look at what the reality of the market is.

Speaker Change: When we love a better visibility of what could be the execution of the year. We have a good balance sheet. So visa. We can we will not wait the end of the year to do announce you what we'll do but again, let's look to what is the reality of the market because at the same time.

Patrick Pouyanné: Because at the same time, the oil price is better. Gas price was a little lower than anticipated at the beginning of the year, even if it's going up in the last weeks to more $9, and $10 in Europe.

Oil prices better gas price was literally row of unanticipated at the beginning of the year, even if it is going up the last two weeks two or more $9000 in Europe, and just pledged with the U S. Because I know Europe is going down to one five is also good.

Patrick Pouyanné: And the spread with the US, because Henri Hoppe is going down at 1.5, is also a good, important indicator for us between the TTF and Henri Hoppe, so that's a good signal. So again, we will follow what we say to investors and shareholders. I remind you as well that we said that we wanted to distribute more than the payout for more for 40%. This quarter is at 46%, I think.

Speaker Change: Indicator for us between the <unk> and virtual expensive, but it's a good signal. So again, we will follow what we say to investors and shareholders I'll remind you as well, what we said, but we want to distribute more than the payout for more for 40%. This quarter. It's always it's 46% I think so.

Patrick Pouyanné: So we are on the way to not disappointing you. But, As with the strategy, we are consistent, and we go step by step. And when we are in a position to take decisions, we'll take them. Wonderful, thank you very much. Well, afternoon, thanks very much for the time and interesting comments throughout. Amazing, isn't it?

Speaker Change: We are on the way to not to disappoint you.

Speaker Change: But.

Speaker Change: As flagged this strategy, we are consistent that we go step by step and.

Speaker Change: When we are in a position to take decision we'll take them.

Speaker Change: Wonderful thank you very much.

Speaker Change: The next question is from Lucas Herrmann, we'd BNP Paribas. Please go ahead.

Lucas Herrmann: Yes, thanks very much for your time.

Lucas Herrmann: Uninteresting comments dropped Patrick.

Unknown Attendee: We all focus on oil now. I've moved on a little bit, but I just wanted to, on the subject of FIDs, I wondered if you could talk a little bit about offshore wind and just how things have progressed for you over the last 6-12 months around cost, and what your thoughts are now on the timing of decisions, you know, Germany, UK, possibly North Asia, where you have opportunities. So just to give us some idea of, okay, I know what I'm doing in Namibia or Suriname, but what am I thinking around, you know, the allocation of capital to wind and timelines? Thanks a lot. Okay, I will be transparent. There is no way around that.

Lucas Herrmann: Nice thing isn't that we all focus on oil and island.

Lucas Herrmann: Moved down a little bit, but I just wanted to turn on the subjects of S. H I Wonder if you could talk a little bit about the offshore wind business.

Lucas Herrmann: And just how things have progressed for you over the last six to 12 months around costs.

S. H: So its all now on the timing of decisions you know Joe.

Many U K, possibly.

North Asia, where you have opportunity so just to give us some idea of okay. I know what I'm doing on the mid tier of Suriname, but one of my thinking around do you have the allocation of capital to wind and timelines. Thanks a lot.

S. H: Okay, Oh, we'd be transparent there is no way, it's clear that you know we had the experience with me in New York well and in fact, it's an issue you know when you are in some Mara.

Patrick Pouyanné: It's clear that, you know, we had the experience recently in New York where, and in fact, it's an issue when you are in some markets which are more regulated or, I would say, more depending on some fiscal incentives. Suddenly, everybody wants to take the incentive for himself. So if the supplier is increasing the price of his turbine because he wants to capture the ITC, then we don't have it, and we cannot make the project. So it's a chicken and egg story, but we are not condemned to develop projects if they are too costly. You know, I'm very, I'm CapEx driven, and you've known me for a long time now.

Markets, which are more regulated though I would say more depending on some fiscal incentives suddenly everybody wants to take the incentive for himself.

S. H: <unk> is a supplier is increasing the price or are you still buying because he wants to capture of the ITC. When we don't have it in when we cannot mix of projects. So it's a chicken and egg story, but we are not condemned to develop projects to coffee.

S. H: Capex driven by you know me for a long now we have just recently said that on PNG, we were able to delay because the capex went out there and go into new contractors and on offshore wind obviously, we'd be at the same position because it's clear that you know vis a vis energy is more expensive.

Patrick Pouyanné: We have just recently said that on P&G, we are able to delay because the CapEx went out there and went to new contractors, and on offshore wind, obviously, we'll be in the same position because it's clear that, you know, this energy is more expensive than onshore wind or solar. And you know, integrated power strategy has to find its place in a merchant way, so we have to be able to make money with merchant pricing as well.

S. H: The onshore wind or solar and you know integrated boost strategy. It has to find its place in our in our merchant waste and we have to be able to make money with a merchant.

S. H: Rising as well so if it's too costly and vessels going out of what could be expected as a merchant pricing for electricity.

Patrick Pouyanné: So if it's too costly and that is going out of what could be expected as merchant pricing for electricity, then why should we do it? So we are working on it. There is no rush.

S. H: Why why should we do it so we are working on it. It's a very it's no rush, we will not be led by a I don't know, which planning of <unk> by 2030 targets to 2030 target for total energy can be filled with plenty of onshore possibilities, we'll have some more.

Patrick Pouyanné: We will not be led by, I don't know which planning, but by a 2030 target. The 2030 target for total energy can be reached with plenty of onshore possibilities. We'll have some offshore projects because we have some in the portfolio that are good, and we will give priority to those. We have created many options, and what we were discussing with Stéphane was, okay, if we need to, we need to rank all these opportunities and choose the best ones, and not necessarily all of them. So again, you have some eating there, but either way, we can have some.

S. H: Sure projects, because we have some in the portfolio which are good.

S. H: Which we read gives a priority we have creating menu options and what we were discussing between US we have Stefan was okay. If we need to we need to or encore these opportunities and to the best ones and not necessarily all of them. So again, you have some eating their but either we can of some.

Patrick Pouyanné: Cold Water on all these value chains. Otherwise, we'll wait and see. You know, we are in that position. But we work. We work. We work on the last comment I would say, for me, offshore wind is an energy for, again, and you have to, you have to look carefully at what will be the electricity market prices. It's an energy source for markets where the electricity price will remain high, you know. It's not, so you cannot deploy it everywhere.

S. H: Quarter would've always value chain of otherwise, we would wait and see.

S. H: That's a position where.

But to me, where we work we work on.

S. H: But that's the amount I would say for me of showing you the ease in energy for again.

S. H: And you have to Egypt, you have to look carefully to what will be the electricity market prices.

S. H: As soon as EUR four markets, where we didn't have electricity price.

S. H: I mean, I know, it's not so you cannot deploy it everywhere.

Patrick Pouyanné: But Germany is a good fit. The UK is potentially a good fit as well. And New York, we'll see again if we can obtain or not the right conditions to develop. So we are monitoring it, but you know, in our capacity for integrated power, it should represent something like 10% by 2030. So it's not the core of the growth. And so if the 10% is only seven or eight.

S. H: But Germany is a good fit uk's potentially a good fit as well and New York, We see again, we can obtain are not the right conditions to do to develop it.

S. H: So we are monitoring it but.

S. H: No in all you know capacity of integrated power it should represent something like 10% by 2030. So it's not the pool of the rules and so is the 10% to only seven or eight.

Speaker Change: I don't care.

Speaker Change: No it does.

Speaker Change: Priority is profitability is profitable growth and so we will.

Patrick Pouyanné: I don't care, you know, it's no, the priority is profitability, and profitable growth. And so we will go and review this project one by one. And if costs are rocketing, it's better to wait and see and allocate our capital to another project. Thanks for taking my questions. The first one is on LNG. There's been on and off news about it still around.

Speaker Change: And if you project one by one.

Speaker Change: If costs are rocketing, it's better to wait and see and to fall to allocate our capital to another project.

Speaker Change: Okay. Thanks very much.

The next question is from.

Cataria: Cataria with Bancorp.

Cataria: Please go ahead.

Hi, Thanks for taking my questions. The first one is on LNG, there's been on and off and you still around.

Cataria: EU sanctions on Russian LNG and I was just wondering what this would mean for your the off take out your MAU in particular would you be able to divert the Congress and sell them elsewhere would you have to.

Cataria: Declared force Michelle and then the second question is on hydrogen so late last year, you announced a call for tender.

Unknown Attendee: And then the second question is on... Hydrogen. So late last year, you announced a call for tender across your refineries, and I don't think we've seen anything since.

Cataria: Ross your refineries and I don't think we've seen anything since I was wondering if you could provide any insight on that.

Unknown Attendee: I was wondering if you could provide any insight on... You know, the response from the industry and what you're seeing there. Okay. I know you like croissants.

Cataria: The response from the industry and what you're seeing there. Thank you.

Cataria: Okay.

I know you liked Chris Schott.

Patrick Pouyanné: First, we don't receive dividends from Yamal LNG since 2003. Second, the LNG business, because I remind you, but because of the risk of sanctions, we decided not to hedge the volumes of Yamal, that means that this year we sold Yamal in Europe at a TTF price, and we bought it at a Brent basis, that means that it's not a very profitable operation. So, honestly, it's not a point.

Speaker Change: Raj very much Mikael.

Speaker Change: But there's no sort of no.

Speaker Change: No.

Speaker Change: I would tell you if EU sanctions yamal LNG.

Speaker Change: Price of LNG will grow quickly and globally, our portfolio will benefit of it so I'm not at all it's a positive if there were sanctions that are negative because the cash from Yamana is quite limited contrary to what you might think.

Speaker Change: First we don't receive dividends from Yamana LNG in 2020 feet thick and the LNG business, because I remind you, but because of the risk of sanctioned we decided not to urge the volumes of Shanghai that means that this year. We are certainly we have sold yes.

Speaker Change: But to GTA fries, and we invite you to the Brent basis, which means that it's not a.

Patrick Pouyanné: So, yes, if there are sanctions on Yamal by Europe or by the EU, we'll have to exercise force majeure, for sure, on some of the contracts. There are two contracts; one is for Europe, which we can exercise. There is one for Asia, on which we'll have to look more carefully at the clause. So, this is where we are.

Speaker Change: A very very profitable operation, so we keep them busy.

Speaker Change: Contract so honestly, it's not the point.

Speaker Change: So, yes, eval sanctions on Yamana by Europe, or by you will have to adjust icefall specials for sure on some of the contracts.

<unk> current foxwoods in for Europe, which we can exercise these phase one for Asia on which we'd have to look more carefully to the zunes accruals.

Speaker Change: So this is where we are and but my view to share with you a garage I don't think because the European leaders understand words there.

Patrick Pouyanné: But my view, to share with you, Biraj, I don't think so, because the European leaders understand that their gas security of supply today relies on LNG, and they don't want, again, to see a price crisis in Europe until 2027. And what I understand is that they might have some ideas, but from 2027 on, not before. So, we'll see.

Yes security of supply today rely on the LNG and they don't want to begin to see a price crisis in Europe until 2007, and what they understand is that that might have some ideas, but from 2007, so not before so we see again for that energy.

Speaker Change: It's neutral.

Patrick Pouyanné: Again, for TotalEnergies, it's neutral. It would even be a plus if there were some sanctions. So, maybe people should think I'm for this project, and you know... It's not billions of dollars in our cash flows; it's more a few hundreds of millions of dollars which we can absorb easily, which have already been largely absorbed since 2022 in the company by other projects. On the second one, I would like you to follow me more carefully.

Speaker Change: It's been impressive there were some sections of maybe People's food fee income a little provocative, but in fact, but giuliani for you and I look to visa to visa.

Speaker Change: As a.

Speaker Change: Through this project and you know.

Speaker Change: It's.

Speaker Change: Billions of dollars in our cash flows as well as few hundreds of millions of dollars, which we cannot so easily which have or would you be largely absorbed since 2022 in the in the company by over of our projects are on the second one.

Speaker Change: I would like you to go for a.

Patrick Pouyanné: We gave you some indications in February on hydrogen. We told you that we received a lot of offers, more than 50 different offers for our tender. We have been offered 5 million tons, and we are targeting 500,000 tons per year. So, the majority of all these projects are not the same.

Walk if when you we gave you some indications in February our nitrogen we told you that we receive.

Speaker Change: A lot of offers more than 50 different offers to tender we have been a <unk> 5 million tons and we are targeting 501000 tonnes per year. So then all of the eventuality of all of these projects are not the same we are working on them.

Patrick Pouyanné: We are working on them, and I'm quite optimistic that we'll get what we are targeting. It's important for us because these 500,000 tons will allow us to decrease our CO2 emissions by 5 million tons.

Speaker Change: I'm quite optimistic to be clear, but we'll get to what we are targeting it's important for us because these 500000 tons will allow us to.

Speaker Change: Discrete shoot to emissions by 5 million tons.

Patrick Pouyanné: 5 million tons; our emissions are, we have this year, 38 million tons, so it's quite sensible on the roadmap. And again, within the European ETS framework and the famous Red Free, we can do it, I would say, in terms of neutrality compared to paying taxes or eliminating emissions and getting some green hydrogen. So I'm really, you know; it's quite attractive.

Speaker Change: So emissions. So we have this year for 8 million tonnes. So it's quite sensitive board on our roadmap and and again in within the European framework and the famous factory. We can do it I would say in terms of neutrality compared to paying your taxes or EMEA emissions and getting some green hydrogen so.

Patrick Pouyanné: We are, in fact, becoming an anchor customer for some players, in particular in Antwerp or Rotterdam, you know, and even Leuven in Germany, quite a strong interest. So we could benefit from being a first mover because, again, they are, as people, our projects are willing to develop the projects thanks to such a 15-year contract that we could offer. So we'll come back to you when we have more clarity. There are different tenders, and a lot of discussions, but I think before the year-end we'll be able to come back to you with news. But I prefer the teams to work rather than give more indications. But we are, I'm convinced that we'll be able to execute the roadmap as planned. Thank you, good luck. Thank you very much.

Speaker Change: Yeah.

Speaker Change: Yeah, you know it's quite attractive we are in fact, becoming an anchor customer for some players in particular in envelope of what Saddam you know and even rowena in Germany quite a longest swung into I saw.

Speaker Change: We could benefit from being a first mover there because again there as people where our projects are willing to develop the projects thanks to such a <unk>.

Speaker Change: <unk> contract that we could offer so we'll come back to you when we have clarity there are different and there's a lot of discussions.

Speaker Change: But.

Speaker Change: I think before this year and we'd be able to come back to you with news, but that prefers it seems to work well then when they're getting more indications, but we.

Speaker Change: We are we are convinced.

Speaker Change: Convinced that we'd have we'd be able to execute the roadmap as planned.

Speaker Change: Okay. Thank you good luck.

Speaker Change: The next question is from Kenneth.

Kenneth: Goldman Sachs. Please go ahead.

Kenneth: Thank you very much and congratulations on the strong capital discipline and the ongoing upgrading of the portfolio. I think you mentioned P&G that Stephanie Great example, where cost inflation has led you to.

Unknown Attendee: And congratulations on the strong capital discipline and the ongoing upgrading of the portfolio. I think you mentioned P&G; that's definitely a great example where cost inflation has led you to rethink or at least delay a project. I was wondering which other projects in your portfolio you think should be delayed or perhaps re-engineered a bit following some of the recent cost inflation? Mozambique is certainly one where it feels like some of the bids have come back a little bit on the high side.

Kenneth: Rethink correctly the delayed project I was wondering which are the projects in your portfolio, you think should be delayed or perhaps reengineer. The beat following some of the recent cost inflation, Mozambique is certainly one where it feels like some of the beat had come back a little on the high side.

Unknown Attendee: And my second question goes back to the idea that you floated off a US primary listing. Clearly, the big aim there is to be included in one of the major indices like the S&P 500, which has so much passive and semi-passive following. I was wondering if you've had any discussions about that.

Kenneth: Second question is goes back to the idea that you floated off.

Kenneth: <unk> primary listing T&D.

Kenneth: Aim there is to be included in one of the major indices like the S&P 500, which has so much passed Stephen's PMA path prudently I was wondering if you've had any discussions there and if you think it's actually something doable to be included in that index, while being remaining headquartered in Europe. Thank you okay.

Unknown Attendee: And if you think it's actually something doable to be included in that index while remaining headquartered? Thank you. Michele, you know the answer to the second question.

Speaker Change: In Canada, you know Xeon Socs and the second question.

Patrick Pouyanné: And you know that you cannot, it will be in the SP500, they are not lobbying in the US, that's all, so we don't intend, that's why we speak about primary listing. But again, when I see, when we discuss with US shareholders, for them, having access directly to real shares in New York would be a plus compared to going through this ADR or to the Paris market to buy shares. I think that's what we think about it.

Speaker Change: And you know that you cannot be in SP, five analyst Yonder depreciated in the U S. That's ore. So we don't intent that's why we speak about the primary listing.

Speaker Change: But again when they see that whenever we discuss with U S shoulders being overnight index authority to wheelchairs in New York would be of less compare to <unk> <unk> or so is a biased market to buy shares I think thats, what we think about it from here clearly a more besides on the.

Patrick Pouyanné: We see clearly more appetite on the North American side for energy companies, oil, and gas companies, but in Europe, so we are studying what could be, again, to facilitate their appetite by offering them easier access to a share. That's the idea, but the index might be a plus, but it's not on the agenda, to be clear, because we don't speak about the submission, we speak about primary listing. And on the first one, no, honestly, on Mozambique, no, we don't face it at all. I know one of my colleagues wants to float that idea, but it's not true.

Speaker Change: The North American side for energy companies oil and gas companies, but in Europe. So it's a.

Speaker Change: We are studying what could be again, a to facilitate their appetite by offering them access to a shares but the idea, but the index might be a bit but it's not in the agenda be clear because.

Speaker Change: Because we don't speak about certainly Miss initiation, we speak about the primary thing.

Speaker Change: That's.

Speaker Change: Alright.

Speaker Change: On the first one no honestly on Mozambique, No. We don't face a tau I know one of my colleagues wants to glutathione EBIT. The true I mentioned that a few months ago that we were discussing with contractors on Mozambique, because they raise their costs. We had good discussions with them. So it's a good news, but I can confirm today is that in fact.

Patrick Pouyanné: I mentioned that a few months ago we were discussing with contractors in Mozambique because they raised their costs. We had good discussions with them. So the good news that I can confirm today is that, in fact, we are back to, on a good contract with all of them. We regrouped all the contractors because their interest is that we can execute a contract project, you know; their interest is not to force us to retender or redesign or I don't know which French idea. So we have a good concept, a strong concept, a resilient one. So we work with all of them.

Speaker Change: We are back to we are on the good contracts with all of that we hear line order contractors because they are in services to the best we can execute upon final project in Los Angeles is not to pulses to withstand all redesign or I don't know, which infringe by D. So we have a good concept home concept facing Antoine.

Speaker Change: So we work with all of them and today, we have contracts, which have been any short or we start a project with over dimension in that project.

Patrick Pouyanné: And today we have contracts which have been initialed to restart the project, but we have other dimensions to that project. And again, on the security side, I would say there have been a lot of things, but the security in northern Cabo Delgado is okay. No incidents, no events; it's well controlled. We will, I will meet President Nussi from Mozambique to review it with him. And so I would say in the southern part of Cabo Delgado, it's quite far from where we are, there have been some incidents, but there again, they are redeploying some forces.

Speaker Change: And again on the security side I would say, we're having a lot of things the security and no firm. The Cabo Delgado is okay. There's no incidents no events, it's well controlled.

Speaker Change: Well Mitch.

Speaker Change: So.

Speaker Change: Soon.

Speaker Change: You see from Mozambique, jewelry Jewish maybe himself.

Speaker Change: And so I would say on the software and parts of couple they've got though it's quite far from where we are but I've been submitted but there again. They are 50 pruning some forces and by the way.

Patrick Pouyanné: And by the way, again, that part is first, I would say, you know, people are asking me, do you lead the force measure? But the first thing to be done is by the state of Mozambique, which is in charge of sovereignty and security, to tell us if we could lift it before I decide. You know, let's do it in the right order. I would say, don't try to ask privately owned companies to decide about something which is not fully in our hands. The security of asphyxia is the first duty; it is the responsibility of the state of Mozambique, and we are working with them.

Speaker Change: Again Thats part its first I would say you know people are asking me. If you already is a forced measure but the first thing to be done by the state of Mozambique, which is south of the sovereignty and security.

Speaker Change: If we could lift it before I decided you know, let's do it in the right. Although I would say don't try to ask a privately owned companies, who decided but something which is not fully in our hands.

Speaker Change: Security of West Virginia.

Speaker Change: Our first duty is the easy duty as states of Mozambique, and we are working with them. So I would say we.

Patrick Pouyanné: So I would say we are, so it's not a matter of cost, this one, it's more a matter of having the right conditions to lift the force measure and to move on, to move on progressively, probably, because it has to be done, to restart, you know, we'll try, we have to want to, remobilizing this stuff will take time, so, but it's not a cost. So, yes, PNG was a cost discipline, frankly, and it's not really redesigned, it's more, I think we made, as we tried to explain, I will tell you, we're limited to our traditional engineering firms, partners, Western ones, I think what is new is that Western contractors have not so much appetite for many, it's like us, they do value over volume, so they have a lot of, plenty of projects in the US, probably easier to execute, you know, and so what we think is that, and we have begun to work with some Asian engineering firms, which are able to, which are also able to deliver upstream, good upstream projects, and we observe it, you know, in Uganda, most of the contractors who are working in Uganda, half of them are coming from Asian countries, and the execution is very smooth, and they respect the costs, the budget, so we are happy with that.

Speaker Change: So it's something that of course is one it's more a matter of I think it's the right conditions for this as a force measure and to move on.

Speaker Change: To move on progressively probably because this has to be done to it. So if you start you know really tried we have to want to be more maybe if he mobilizing the staff will take time, so that's a start.

Speaker Change: So, yes, PNG was a cost discipline, a crack here and your stock does kidney IC design and it's more I think we made.

Speaker Change: As we tried to explain and I will tell you is were limited to a traditional engineering.

Speaker Change: Engineering firms partners with some nuance I think what is new is that the wisdom contractors not so much appetite for many.

Speaker Change: They do value over volume. So we have a lot of plenty of projects in the U S for the year to execute.

Speaker Change: And so what we think is better and we have begun to work.

We had some Asian engineering firms, which are able to which are also able to deliver upstream good upstream projects and we observe it you know and you again.

Speaker Change: Most of the contractors were working and you'll get all of them are coming from our Asian.

Speaker Change: The executing execution is very smooth and various types of costs of budget. So we are happy with that so I think it's more.

Speaker Change: We went through the traditional player we want to open to things that we can take time and I'm optimistic that we can put this project back on track, but again as I answered before within our portfolio. We have many options and that's good to have many options no. We are not discussing a lot of mass side energy we.

Patrick Pouyanné: So I think it's more, we went to the traditional players, we want to open the tender, it will take time, and I'm optimistic that we can put this project back on track, but again, as I answered before, within our portfolio, we have many options. And that's good to have many options. No, we are not discussing a lot of mass LNG. We have it.

Speaker Change: We introduce it we know we might have another option, which scored 24 Rio Grande LNG project, which might be more efficient by Nova So I prefer to have more option and went to reorganize their planning and to be able to resist.

Speaker Change: To to cost increase to keep the discipline.

We will be able despite these two deliver the LNG of Wolf, we anticipate for 2028, So that's where that's where we are and and again we will.

Patrick Pouyanné: We introduce it. We know we might have another option, which is called 24 in the Rio Grande LNG project, which might be more efficient than others. So I prefer to have more options and then organize the planning and be able to resist cost increases, to keep the discipline. Why?

Speaker Change: Monitor the project, one by one and and we see no sugar daily we have good costs.

Patrick Pouyanné: We will be able, despite this, to deliver the LNG growth we anticipate for 2028. So that's where we are. And again, we'll monitor the projects one by one. And we'll see, you know, in Suriname and Delhi, we have good costs, benefiting somewhere from synergies for some contractors with all the projects in Guyana, that's clear. So there is a synergy somewhere. Contractors who are working in Guyana propose to come with us in Suriname because for them... Thank you. Good afternoon. Thanks for taking my question. I've got two on LNG, please.

Speaker Change: Benefiting somewhere from synergies for some contracted with all the projects in Vienna, let's clear. So there is a synergy somewhere.

Speaker Change: Contractors, who are working on Vienna, they proposed to come with us and so we're not because for them. It is.

Speaker Change: Just next and so we can capitalize on what we've done we've seen average out which is a new province of we'd be for me.

Speaker Change: I would say frontier from this perspective is how do we establish the inefficient.

Speaker Change: The industry is up a servicing et cetera in Indonesia.

Speaker Change: Thank you.

Speaker Change: The next question is from Kim <unk> with <unk>.

Kim: Please go ahead.

Kim: Good afternoon, and thanks for taking my question I've got two and LNG. Please the first one is on U S. LNG integration I think your intention to extend into the upstream and U S gas has been well telegraphed for a while and now you've made his first step with the newest energy deal are you able to say roughly what proportion of your U S LNG off.

Unknown Attendee: The first one is on US LNG integration. I think your intention to extend into the upstream of US gas has been well telegraphed for a while, and now you've made a first step with the Lewis Energy Deal. Are you able to say roughly what proportion of your US LNG offtake you'd like to cover in the medium term? And, secondly, you mentioned the good appetite for new oil-linked LNG contracts from Asian countries. Are you able to say or give any color on the slopes embedded in these new contracts?

Speaker Change: I'd like to cover.

Speaker Change: In the medium term and secondly, you mentioned good appetite for new oil linked LNG contracting Asian customers are you able to say or give any color on the slopes embedded in these new contracts.

Patrick Pouyanné: And also, what share of your contracted LNG sale is up for renegotiation over the next few years? Okay, on the first one, I think I've been clear we want to protect our two-edged, I would say, our cost of gas, our cost of production by having some... or some equity in gas production in the US, so it's around 1 BCFD which we could target more or less. But then again, no rush, today is the right time, the unrest is low, so we've seen some dry gas producers quite keen to open the door, so we try to jump in.

Speaker Change: So what share of your contracted LNG sale is up for renegotiation over the next few years. Thank you.

Speaker Change: Okay on the first.

Speaker Change: First one.

Speaker Change: I think I've been clear we want to.

Speaker Change: Sell through edge I would say our cost of gaslog cost of production, but having some.

Speaker Change: Some gas from equity and gas production in the U S. So it's around one bcf, which we could target more or less.

Speaker Change: But then again no rush today, its a right time to be on rehab is wrong. So we've seen some dry gas producer quite keen to open the doors. So we try to jump in.

Patrick Pouyanné: So it will not be a big acquisition, probably it will be a sum of assets, and like we do, you know, you will probably observe that I prefer to do that rather than rushing to make big M&A, which is expensive. And so we have an opportunity to do it, and the dry gas window, Eagle Ford is perfectly located next to Rio Grande, that was one of the advantages of Rio Grande Energy, and you know there is not much appetite for this dry gas in the Eagle Ford Basin, so there are opportunities there to deploy, to develop a position over the long term, that's what we target.

Speaker Change: Yeah.

Speaker Change: Each acquisition from lease reviews, some of assets and the like we do you know you observed poverty.

Speaker Change: So to do that in Washington to make big M&A with sharp expensive and so we have an opportunity to do it and and dry gas window Eagle Ford is perfectly located next to you Randy that was one of the advantage of a weakening in the energy and I'll let.

Speaker Change: <unk> appetite for me, so I guess, the Eagle Ford Basin, so the opportunities there to deploy to develop a position on the long term.

Speaker Change: What we target.

Patrick Pouyanné: And the cost of acquisition is quite good; it's quite good, in particular today, because it's counter-cyclical. You know, it's always what I think to make good is when it's counter-cyclical. And this is typically what we should do today.

Speaker Change: And of course of equity assurance quite a quite good quite is quite good.

Speaker Change: In particular today, because it's gone to a cyclical and always always what they make good news when it comes to cyclical. This is typically what we should do today.

Patrick Pouyanné: And I have at 1.5 or two is a good opportunity for us to, so if people are listening to me, they can come. Then, on the LNG contracts, no, I cannot give you some commercial discussions on the slopes. It's protected, by the way, in most of my contracts. It's written, but I cannot disclose it, so I cannot do that.

Speaker Change: Yeah, but one five or two is a good opportunity for us with us.

Speaker Change: So if people are listening to me they can call a van.

Speaker Change: Energy contracts no I cannot give you some commercial discussions on the slopes.

Speaker Change: Protective price away in most of my contract is written but I cannot disclose it so I cannot do that if we sign it because it's fitting we've all expectations. That's all what I can tell you.

Patrick Pouyanné: If we had signed it because it fit our expectations, that's all that I can tell you, but I cannot do that. And we renegotiate contracts. In most of the long-term contracts, you have a clause which is, I would say, either five or 10 years. It depends. So I think it's more like seven years on average.

Speaker Change: Well I cannot do that and you know we renegotiate the contracts you know in most of the long term contract.

Speaker Change: Those which is I would say I've, a five or 10 years. It depends so I think it's more than seven years on average. So you know every year, which says we have a large portfolio, where we have a 40 million tonnes of LNG contracts pilot. We have one seven so I would say more or less of these oops.

Patrick Pouyanné: So every year, I would say, as we have a large portfolio, we have 30 million tons of LNG contracts. So one-seventh, I would say, more or less, of these volumes are being renegotiated. But you know, renegotiation is positive for us because it's an opportunity sometimes to have longer contracts, so it's a permanent exchange of prices, duration, volumes, and optionalities. So, in fact, when we are opening these contracts, this idea, there are many parameters which are on the table. You know, it's not just the pricing. And then you exchange, okay, maybe more optionality to redirect some volumes in favor of the seller or the buyer.

Speaker Change: We are being renegotiated, but no negotiation for us. It's also positive because of the opportunity sometimes to longer contract. So it's a permanent.

<unk> changed a bit in pricing and duration and volumes of Optionality. So in fact, when we ever happening.

Speaker Change: These contracts are five year, there are many parameters, which are on the table no. It's not just a pricing and value exchange. Okay may be more optionality to direct some volumes in favor of the center of the buyer. So if thats quite interesting. This negotiation. So I would say, we can negotiate more or less again, you can take it.

Patrick Pouyanné: So in fact, it's quite interesting, this negotiation. So I would say we renegotiate more or less, again, you can take it as a whole firm, one-seventh of all, 30 million tons. So it's what we are accustomed to doing. But it's also, I was in China recently, and we also discussed new contracts with the people, so it's a permanent give and take, and that's part of commerce. I would say it's commerce, it's a business, and it's a trade. Thank you. Alastair Syme says: Thanks.

Speaker Change: It is all of them once they themselves.

Speaker Change: Tons sold.

Well I can start to do it but it's also I was in China recently, we also discuss with new contracts with the people. So it's a permanent.

Speaker Change: Even if they can so that's part of this program. So I would say so from US it's a business twice.

Speaker Change: Okay. Thank you.

Speaker Change: The next question is from Alastair Syme with Citi. Please go ahead.

Alastair Syme: Alright, Thanks, a lot Patrick.

Alastair Syme: Hi Patrick. Can you talk about how much of your integrated power business earnings come out of Spain? I think you've got a lot of the flexible generation combined cycle capacity. I'm really just interested in how the current low Spanish power prices will eventually feed through into earnings, if they do at all. And then my other question, just back on Namibia. I mean, I think in the press earlier in the week, you got... [inaudible] No, but again, on the second point, there are two different... One is each development.

Alastair Syme: Talk about how much of your integrated power.

Alastair Syme: Business comes out of Spain.

Alastair Syme: I think you've got a lot of the flexible generation combined cycle capacity.

Alastair Syme: I'm really just interested in the house.

Alastair Syme: Current law Spanish power prices will eventually feature.

Alastair Syme: At any point.

Speaker Change: And then my other question just back on the book.

Speaker Change: In the press earlier in the week you got pinned.

Speaker Change: Pinned down to suggested what holds similar potential to Ghana.

Speaker Change: You've talked about 190000 barrels a day development, which is something that there's no huge just sort of interested in what makes you connect the dots there something sort of geometry.

Alastair Syme: You know how much the size of one development is. And again, it's dimensioned fundamentally by the facilities on the top side of the FPSO, because, including the GOR, you cannot oversize the gas handling facilities on the top side of the FPSO. And that generally governs quite a lot of oil production. So I told you, again, the question will be, how many can we do? And when I see my comments that I've done, it's just that when I observe, it's not only, it will not be like in Guyana when one GV will cover the full discoveries. That is not the case.

Speaker Change: Yeah.

Speaker Change: Thanks.

Speaker Change: Oh, that's again.

Speaker Change: The second important two differences.

Speaker Change: One is each development you know how much is the size of one development and again its dimension fundamentally based on facilities.

Speaker Change: Top sides audio so because in footings that you all you cannot oversize the gas handling facilities on the top sides on the fees, so that governs and already quite a lot of oil production. So I told you again. It's a question. We there are many can we do it and when they see a micro <unk>.

Speaker Change: But that is just what we now observe its not only it will not be like <unk>, which covers a food and scrubber is not the case. So we'll not have I would say is obviously this is a sudden efficiency to have one GB in charge of deploying the full resources, where do you see the case for our friends in Indiana in the U S different hunt operate.

Patrick Pouyanné: So we'll not have, I would say, from this facility the same efficiency as having one GV in charge of deploying the full resources, as is the case for France in Guyana. In Nabilia, you have different operators who are discovering oil and hydrocarbons, ourselves, Shell, and GALP. So that means, but when I'm adding what we know about it, I'm adding it, I think the perspective to have six, seven FPSOs, or I don't know, is perfectly possible in the whole Orange Basin.

Speaker Change: So those who are discovering Oregon and hydrocarbons ourselves shelves guard, so that means, but when I'm, adding and what the new what we know about it.

Speaker Change: I think that perspective, whoever six settlement dsos or I don't know is perfectly.

Speaker Change: Perfectly possible on the on the Orange Basin, and we just at the beginning of each fruition, including on our block, including I mentioned.

Patrick Pouyanné: And we're just at the beginning of exploration, including on our block, including the Orange Basin I mentioned on the South African side. So honestly, it will not be as efficient in terms of development because it's on one GV, but several GVs could cover it. I mean, the potential of this area seems to be quite attractive. So again, you have different operators, different explorations, programs to be executed.

Speaker Change: Or when spacing of the South African side, so honestly it will not be as efficient as they love.

Speaker Change: It's not one TV, but the civil or GBS.

Speaker Change: The cover.

Speaker Change: Potential of visa seems to be quite attractive so again, let's.

Speaker Change: You have different operators different exploration programs will be executed so, but just picking up on the first one Spain is around the right way to the 2025 out of the first decided to go with it presents I think something like one one to one to two gigawatt. So it's done.

Patrick Pouyanné: So that's the second part. On the first one, though, Spain is around, by 2025, out of the 35 gigawatts, it will represent, I think, something like 1 to 2 gigawatts. So it's not a major country.

Speaker Change: That's a major country. It's the one we started quickly.

Speaker Change: Because it was easy to have access to some solar projects next to France.

Speaker Change: But it appears yes, youre right, but its quite to subsidize the country because a lot of competition for price.

Patrick Pouyanné: It's the one we started quickly, because it was easy to have access to some solar projects next to France. But it appears, yes, you're right, but it's quite a... it's not an easy country, because there is a lot of competition, and the price of electricity is quite low.

Speaker Change: Quite low you have a lot of.

Speaker Change: But again and you have some curtailment. So you have to be careful about the project. It was an early mover to wherever you are also there is a lot of proteins that but I would say in the plan I would say by 2030.

Speaker Change: Something like a book you get water for another two 5%. So it's not in Europe for me is not the number one country to deploy.

Patrick Pouyanné: You have a lot of... but again, and you have some containment, so you have to be careful about the project. It was an early mover to renewable energy, so there are a lot of projects there. But I would say, in the plan, I would say by 2030, we could target something like 4 gigawatts of 100, so 4-5%. In Europe, for me, it's not the number one country to deploy in terms of integrated power. Germany has more interest and even, I would say, the UK.

Speaker Change: Of integrated power, Germany is more into us and even I would say.

Speaker Change: UK because again for us the driver would be where do we see the best combination because between gas and renewables.

Speaker Change: Okay, that's fine.

Speaker Change: A quick question, please which is really old today.

Speaker Change: Earnings integrated power coming out of combined cycle gas.

In spite of a day.

Speaker Change: Spanish quite low you don't use much of the commodity cycle today.

Speaker Change: Okay. Thank you.

Speaker Change: The next question is from Beltran <unk> with Kepler. Please go ahead.

Patrick Pouyanné: Because, again, for us, the driver will be where we see the best combination between gas and renewable energy. Thank you. Thanks, Faye.

Beltran: Yes good.

Beltran: Good afternoon, Patrick to.

Beltran: Two question. The first one is on the U S offshore wind.

Unknown Attendee: My question, Faye, which is really on today, I get a lot of your earnings in integrated power coming out of the combined cycle. [inaudible] Okay, thank you. Yes. Good afternoon, Patrick. Two questions. The first one is on US offshore wind.

Speaker Change: Well listen.

Beltran: Youll protract are attempting to nancy that with that.

Beltran: It is canceled can you share with us the reason of that consideration because I understood. They were just should testing.

Unknown Attendee: Uh, there were recently, uh, your project, uh, Attentive Energy, that was, uh, It was cancelled. Can you share with us the reason for that cancellation? Because I understood there should have been a one-off, I would say, index sensation closely linked to the cost. And so I'm struggling to really understand. And do you still see a way forward for US offshore wind? And then the second question is, is LNG related?

Beltran: One offs I would say indexing sanction close.

Beltran: Linked to the cost and so I'm struggling to really understand.

Beltran: And do you still see a way forward in U S offshore wind.

Beltran: And then the second question is on <unk>.

Beltran: LNG related.

Beltran: You said in your introductory remarks that you've asked.

Patrick Pouyanné: You said in your introductory remarks that you asked your team to sign a long-term LNG contract with Asian buyers in the coming years. Do you have a volume in mind?

Beltran: You've asked your team to sign long term LNG contract with Asian values in the coming years do you have.

Patrick Pouyanné: The first question, in fact, Bertrand, I answered previously. I explained that... So one of the key contractors which is making a lot of local content that suddenly increases costs, probably trying to push the limit, he has reached the limit. And in fact, it's, I would say, you have to wait and see the follow-up, but I cannot disclose it because, again, we have some contracts with the City of New York and the State of New York, so I prefer not to comment on that. The State of New York is managing this.

Beltran: Volume.

Beltran: In mind.

Beltran: The first question and in fact, that's how I answered previously I explained that.

Beltran: So one of the key contractor, which is making a lot of local content. So that may increase as cost probably trying to push the limits you reached the limit and in fact, it's a I would say you have to wait and see as a follow up what they cannot disclose it because again, we have some contracts.

Speaker Change: The city and the state of New York, So I prefer not to comment it.

Speaker Change: State of New York is managing this.

Patrick Pouyanné: This, I mean, contracts. The intent is yet to have the project. And so they will probably, like they did for the two old contracts with two competitors, re-tender it under the conditions which will allow us to launch the project. But let's, you need to have a little more time, and you will understand. On the second one...

Speaker Change: I mean, our current Fox the intent is yet towards the projects.

Speaker Change: And so they were the overdue like they've done closer to old contracts with two competitors that we tend to do it in the condition, which will allow us to launch a project, but let's let you need to a little more time and you will understand.

Speaker Change: On the second one.

Patrick Pouyanné: I don't want to put a target officially today in front of the public with my teams; we know that we have some volumes available in our portfolio, so this volume might be marketed, and it has to be marketed. When we took on in Rio Grande the commitment of 5 million tons, we don't want to market all of it, but part of it clearly has to be marketed; it's part of the strategy. It's good to deliver the contracts, so it's... It's less than five, but it's not zero. So you find the objective and stuff like that.

Speaker Change: Thus I don't want to get to put the targets officially today in Toronto publicly with my teams, but yeah. We know that we have some volume so valuable.

Speaker Change: In our portfolio. So this volume by the market.

Speaker Change: It could be marketed.

Speaker Change: When we took our Rio Grande is a commitment of 5 million tons, we don't want to market all of it but part of it's Kelly SVP of marketing it as part of the strategy. We have a balance sheet is strong enough and we are requesting octaves enough to do it without having to cut back but at the same time.

Speaker Change: Good to deliver complex choices.

Speaker Change: One five.

Unknown Attendee: Again, at the end, it's a question of negotiation, discussion, and I think the right contracts in terms of values. Thank you. Thank you. Patrick, you did the small deal, buying 20% of the radio. With your LNG exposure in the Gulf Coast, is that sufficient, or are you seeking additional assets in the U.S.? Okay, Paul, I think I answered Kim, no, it's not enough, it's the first one, it's an opportunity, it's the first volume, it's, I think, 100, 200 million scripts per day, and we target more than one BCFD, so there will be more to come. But the Eagle Fold, as I said before, is a right, is a good... A good patient, dry gas in your form, is a good patient.

Speaker Change: Zero.

Speaker Change: Refinery funded you'll find two objectives.

Speaker Change: Like that again at the end of the depletion of negotiation discussion and I didn't go to a <unk> complex in terms of value.

Speaker Change: Thank you.

Speaker Change: The next question is from Paul Cheng with Scotiabank. Please go ahead.

Paul Cheng: Thank you.

Patrick.

Paul Cheng: Yes.

Paul Cheng: Small appeal buying 20% off the radar.

Paul Cheng: With your LNG exposure in the Gulf Coast is that sufficient or that you are seeking additional onset.

Paul Cheng: The U S.

Paul Cheng: Okay Port I think I have answered to king no. It's not enough. It's the first one that's sort of opportunities.

Paul Cheng: First of all yours.

Paul Cheng: So I think one of the scope of there and we are targeting more one bcf resource.

Paul Cheng: Okay.

Paul Cheng: But the Eagle Ford as before is that right.

Paul Cheng: Good.

Good base in dry gas Utica or forms of innovation for us.

Okay.

Paul Cheng: And that your acquisition of condos.

Patrick Pouyanné: I think and that your acquisition of Carlos is a low carbon solution. With that, how has that changed your approach to or your pace on investment in that area in the carbon story? I think it's a compliment, you know. I've always been clear on CO2 storage that we were ready to develop a portfolio primarily in Europe because it's linked to our assets. In the U.S., we have some refineries and petrochemical assets, so we know that we have to store CO2.

Condos on that low carbon solution.

With that how has that changed at all.

Paul Cheng: That you'll you'll approach or that pays on investment in that area in the carbon story.

Paul Cheng: I think it's a compliment you know I've been always clear on Q2 storage, but we were ready to develop a portfolio of primarily in Europe, because it's linked to assets in the U S. We have some refineries and petrochemical asset. So we know that we'd have to store Q2, we had the opportunity to have access to it I would say a chip conditions.

Patrick Pouyanné: We had the opportunity to have access, I would say, at cheap conditions to these two nice projects, CO2 storage, one in Texas, very next to Port Arthur, where we are located, which is operated by Chevron, very committed, so a good operator next to our facilities, so that's matching our target. And another one in Louisiana, which is not really, but we intend to divest a second one.

Paul Cheng: So these are nice to do that.

Paul Cheng: Projects here to storage one in <unk>. The index report offer where we are located.

Paul Cheng: <unk> is a very special very committed good operator next to our facility. So that's my cheap oil targets and the number one reason, which is not what we intend to divest the second one. So again, we are driven fundamentally by securing some volumes on good projects.

Patrick Pouyanné: So, again, we are driven fundamentally by securing some volumes on good projects for being able to store our own CO2, and if we have more capacity, we'll offer it to our two abate industries in the vicinity. So that's, I think, a strategy, and this one in the U.S. In the U.S., we have quite a vibrant CO2 economy, so it might be a nice place to have a good scheme to have, I would say, a low-cost CO2 storage.

Paul Cheng: For being able to store all tier two and if we have more capacity, we will offer it to Ottawa based industries in the vicinity. So that's I think.

Paul Cheng: <unk>. This one in the U S and the U S. We have quite a.

Paul Cheng: A vibrant future economy, so it might be a nice place to two of a good scheme to us I would say a low cost due to storage.

Patrick Pouyanné: Patrick, if that means that you want to... I know we have a new plan now, don't we? Is it primary to use it to lower your carbon emissions or intensity of your own operation, or that you look at it as a gateway for a third-party revenue source business?

Speaker Change: Uh Huh Patrick.

Speaker Change: Uh huh.

Patrick: Yes, I know, we have a new class of memory yeah.

Patrick: Yes, if I marry that use it for lower your carbon emission intensity of operation or that you looked at it as a gain.

Patrick: Wait for a third party revenue source business.

Unknown Attendee: It's for both. All right, we do it. Thank you. Hello Patrick and Jean-Pierre, thank you for the update. Just one question on integrated power, you mentioned a strong first quarter in terms of cash flow from operations, this re-annualized here, the first quarter. You're already in the upper half of the guidance range for the year, and you'll have more capacity. The upper end of the 2.5, 3 billion cash flow range, maybe even slightly higher, like 2.7, 2.8, but you know, I'm not sure. It's a permanent growth

It's full booth.

Speaker Change: Okay alright, thank you.

Speaker Change: Okay.

The next question is from Henry Coffey.

Unknown Attendee: UBS. Please go ahead.

Unknown Attendee: Instead of protection will be I think you have the update I have just one question on integrated PA you mentioned your strong first quarter in terms of cash flow from operation as we annualize the first quarter.

Unknown Attendee: Already in the upper half of the guidance range for the year and you'll have more capacity coming on stream.

Unknown Attendee: The rest of the Chinese point, you expect that to you.

Unknown Attendee: More likely to be at the upper end of that 253 billion cash flow arrangement be even slightly higher he said something to have in mind. When it comes to noted first quarter cash flow, which we explained that we expect to know exactly but make three year. Thank you. Thank.

Speaker Change: No no I confirm the two five to three.

Speaker Change: You can multiply by four you would find something like 2728, but you know.

Patrick Pouyanné: I'm not sure sometimes we don't have seasonality in this business. And don't forget it; you consume more in winter than sometimes in summertime. It depends on the region.

Speaker Change: Troy, it's a permanent Gulf I'm not sure we said that we'd not have the.

Speaker Change: Is it seasonality to this business and therefore don't forget it.

Speaker Change: You consume more in wind turbine sometimes in some of the time it depends on the region, even if it takes us it's a country of more.

Patrick Pouyanné: Even if in Texas, it's the contrary; you have more cash in summertime with hot weather than in Europe, but you have the seasonality aspect. So I confirmed 2.5 to 3. And if we can be next to 3 rather than next to 2.5, I will be happy. Thank you for taking my question. It's too late, actually, to go back. Integrated Power.

Speaker Change: Our cash and some other times, we've ever been in Europe, but do you have any sort of seasonality aspect. So it is not.

Speaker Change: I confirm two five to three and if we can be next to figure out over the next one or two point fiber will be IP.

Speaker Change: Okay. Thank you.

Speaker Change: The next question is from Sean Luc Romain with CIC market solutions. Please go ahead.

Speaker Change: Thank you for taking my question.

Unknown Attendee: You have had a strong start to the year. Should we expect the quarterly level of organic capex to... What you were about to say... the rest of 2024? [inaudible] But I think you have something very uneven during the year, because as you know the guidelines we give you are a net capex, and you have, of course, with a growing portfolio, a growing part of farm downs, which will be booked probably more in the second half of the year than in the first half.

Speaker Change: Capex.

Speaker Change: Integrated pillow.

Have you ever had a strong start to yet should we expect Oh sorry, okay.

Speaker Change: Capex too, but can you just say Oh mhm.

Speaker Change: Rest of 'twenty sounds cool to see that accelerate.

Speaker Change: No, but I think you have some fever and even during the year because as you know we've guided.

Speaker Change: Guidance. We gave you is the net Capex and you have of course with a growing portfolio of growing part of our farm Downs.

Speaker Change: Which would be booked probably more in the second half of the year in the first half.

Unknown Attendee: So, you see more organic CAPEX at the beginning, and then we should land on what was planned for the year, I think 5 billion, that's what we mentioned. So I don't anticipate a higher capital allocation to this segment. And by the way, as it was said by Christyan, as we have quite a number of good oil projects, percentage of allocation, 30%, 33%.

Speaker Change: So you will see more organic capex at the beginning and when are you should we should land.

Speaker Change: What was the plan for the year I think $5 billion. That's what we mentioned to you. So I don't anticipate a year.

Speaker Change: Our capital allocation to this segment and by the way, we I mean as it was said by accretion as we have quite a number of good oil projects.

Speaker Change: Yes. It is nuts again, we've told you, but we have reached the rights.

Speaker Change: This antigen of allocation, 30%, 53%, so a better guideline and I'm speaking on this one for the years to come it's part of we came to that level quicker or unexpected but.

Jean-Pierre: So that's a guideline, and I'm sticking with this one for the years to come. It's part of why we came to that level quicker than expected. But now it's also a matter of discipline; we have a lot of opportunities, but we are also selective. And it's important because, again, it's not one against the detriment of the other. So that's because we execute a strategy. So it's more a timing effect for working capital rather than seasonal effects now. But you will see it landing during the year.

Speaker Change: Now it's also a matter of discipline, we have a lot of opportunities, but we are also selective and it's important.

Speaker Change: Because again, it's not one <unk>.

Speaker Change: As we execute our strategy.

Speaker Change: So it's more of a timing effect like for the working capital or other than the seasonal effects that you would see lending during the year.

Jean-Pierre: Okay. Thank you very much. Thank you. And thank you. Thank you to all of you. I think we were targeting to be on time in order for you to attend the Exxon call, which is a follow-up in five or 10 minutes. So we respected it. Thank you for your attendance. And again, it's another quarter of strong delivery. Some people will say TotalEnergies is sometimes a little boring, but we are boring for the good, you know, and always going up.

Speaker Change: Thank you very much.

Speaker Change: Thank you.

Speaker Change: Gentlemen, there are no more questions registered at this time.

Speaker Change: And thank you. Thank you to all of you I think we are targeting to be on time in order for you to attend.

Speaker Change: Some.

Speaker Change: Core <unk>, which is followed up in five or 10 minutes. So we respect it.

Speaker Change: You for your attendance and again.

Speaker Change: It's another quarter of strong there is always some people will say, it's a sudden as is sometimes retail brewing with we are moving towards a good you know nobody is going up.

Speaker Change: <unk> as a share so I mean I prefer to be the best situation not to surprise, but to execute to deliver to be consistent and I think it's probably one of the good.

Speaker Change: When you buy shares you can trust that we will deliver a message.

Jean-Pierre: So as a share, what I mean, I prefer to be in a bad situation, not to surprise, but to execute, to deliver, to be consistent. And I think it's probably one of the good things. When you buy shares, you can trust that we will deliver. That's the message. Thank you.

Speaker Change: Thank you.

Speaker Change: Ladies and gentlemen, this concludes the conference call. Thank you for your participation.

Disconnect.

Speaker Change: Okay.

Speaker Change: [music].