Q3 2025 TotalEnergies SE Earnings Call

October 30, 2025

Speaker #2: I now hand over to Patrick Pouyann chairman and CEO and Jean-Pierre Sbraire CFO , who will lead you through this call . Sir , please go ahead .

Speaker #3: Good afternoon . Good morning everyone . Before Jean-Pierre goes through the details of the results , I would like to make a few opening comments .

Patrick Pouyanné: Good afternoon, good morning, everyone. Before Jean-Pierre goes through the details of the Q3 results, I would like to make a few opening comments. Almost exactly one month ago, we updated you with our strategy during our Capital Markets Day in New York, and we had four key messages: consistency and resilience of our two-pillar strategy, strong and secure production growth in our oil and gas business, attractive cash flow generation, and capital discipline. I believe that this company, strong Q3 results, but again, Jean-Pierre will detail with you, perfectly illustrates these key catalysts and highlights the value proposition of a consistent and profitable growth model. Strategy is clearly in motion and translating into more cash flow, even in a more challenging environment.

Speaker #3: Almost exactly one month ago , we dated you for strategy during our capital markets day in New York . And we had four key messages .

Speaker #3: Consistency and resilience of our two pillar strategy . Strong and secure production , growth in oil and gas business , accretive cash flow generation and capital discipline .

Speaker #3: I believe that this company has strong third results for third quarter results , but again , Jean-Pierre will detail with you perfectly illustrates this key catalysts and highlights the value proposition of our consistent and profitable growth model strategy is clearly in motion and translating into more cash flow , even in a more challenging environment .

Speaker #3: Indeed , despite all pricing dropping by more than $10 per barrel year on year , the cash flow for the third quarter increased by 4% and adjusted net income for the third quarter held steady , while primarily for two reasons .

Patrick Pouyanné: Indeed, despite oil pricing dropping by more than $10 per barrel year-on-year, the cash flow for Q3 increased by 4%, and adjusted net income for Q3 held steady. Why? Primarily for two reasons. First, the hydrocarbon growth, production growth is a reality and is highly accretive. The new project barrels coming online, such as Mero field in Brazil, deepwater projects in US offshore Gulf for oil, Jura and Phoenix for gas, have an average cash flow margin which is roughly twice higher than the base portfolio. They have contributed 170,000 barrels per day during the first 9 months of 2025 compared to our 2024.

Speaker #3: First , the hydrocarbon growth production growth is a reality and is highly accretive . The new project barrels coming on line , such as in Brazil , the projects in the US , offshore gum for oil , Tura and Phoenix Gas have an average cash flow margin , which is roughly twice higher than the base portfolio and have contributed 170,000 per day during the first nine months of 2025 , compared to 2020 .

Speaker #3: Four . These new barrels have generated around $400 million of additional cash flow year on year . So growth volume around $200 million and higher margin another $200 million .

Patrick Pouyanné: These new barrels have generated around $400 million of additional cash flow year-over-year, growth volume around $200 million, and higher margin, another $200 million. They have contributed to absorb the equivalent of $6 per barrel of decrease in the Brent in terms of cash flow. That's, I think, the strong demonstration that of discipline investment framework that includes strict sanctioning criteria, less than $20 per barrel physical force c-cost or $30 per barrel break even for E&P project is delivering its fruits. We expect, of course, that the cash flow tailwind from new high margin barrels will continue as we work our way through our deep project queue. As a reminder, starting from 2025, continuing in 2026, the company is growing upstream production by 3% per year through 2030.

Speaker #3: And so they are contributing to absorb the equivalent of $6 per barrel of decrease in the brand in terms of cash flow . So that's I think the strong demonstration that disciplined investment framework that includes strict sanctioning criteria , less than $20 per barrel , technical force cost of $30 per barrel , breakeven for E&P projects is delivering its fruits .

Speaker #3: And we expect , of course , this cash flow tapering from new high margin barrels will continue as we work our way through our deep project queue .

Speaker #3: As a reminder , starting from 25 , continuing in 26 , the company is growing upstream production by 3% per year through 2030 .

Speaker #3: And what is the differentiation factor ? That the standout of our our model is clearly that more than 95% of this production by 2030 is already at online or under construction , and largely under Lumpsum EPC contracts , which significantly decrease the cost .

Patrick Pouyanné: What is the differentiation factor? That's, that's the standout of our, of our business models is clearly that more than 95% of this production by 2030 is already either online or under construction, and largely under lump-sum EPC contracts, which significantly de-risk cost. Projects are in hand, and we are executing them. Again, 20 this year and this last quarter demonstrate that we are well in the delivery mode. Some people feel we think we are growing, but we are growing for the good. Cash is growing. The second pillar of these good results have been the recovery of the downstream, which contributed to the, contributes to the company's resiliency, with cash flow up by almost $500 million. It is true that the refining margin were better.

Speaker #3: So the projects are in hand and we are executing them . And again , 20 this year and this last quarter demonstrates that we are well in the delivery mode .

Speaker #3: Some people think we are boring , but we are boring for the good . Cash is growing . The second pillar of this good results of the recovery of the downstream , which contributed to the contributes to the company's resiliency with cash flow up by almost $500 million , it is true that the refining margins were better , which is also true , but we managed to capture them thanks to a availability of our assets .

Patrick Pouyanné: It's also true that we managed to capture them, thanks to a good availability of our assets. In particular, there were several turnarounds during the quarter, but they were executed in time, in schedule, and in budget. It allows us to reach our objective. Of course, marketing and services continue to deliver consistent results and demonstrate that the priority given to value over volume in this segment is the right approach. In addition to highlighting the strength of a consistent strategy, this Q3 demonstrates as well that we are delivering the short terms, specifically on the second half 2025 plan that we laid out during the July earnings call, which included four key elements. Again, the accretive production growth, giving more cash flows.

Speaker #3: We and in particular , there were several turnarounds during the quarter , but there were executed in time , in schedule and in budget , and it allows us to reach our objective .

Speaker #3: And of course , marketing and services continue to deliver consistent results and demonstrated by the priority given to value over volume in this segment is is the right approach .

Speaker #3: In addition to highlighting the strength of the consistent strategy , this third quarter demonstrates as well that we are delivering the short term specifically .

Speaker #3: Specifically on the second half of the 2025 plan that we laid out during the July earnings call, which included four key elements.

Speaker #3: Again , the accretive production growth , giving more cash flow , but down one , inflections in our net investments . Coming back to the capital discipline , which decreased by $3.5 billion quarter over quarter , a reversal of the seasonal working capital .

Patrick Pouyanné: The downward deflections in our net investments, coming back to the capital discipline, which decreased by $3.5 billion quarter-over-quarter. The reversal of the seasonal working capital, as we have released this quarter of $1.3 billion. Lastly, of course, all these elements improve the gearing that is now close to 70% compared to next to 18%. The end result is that during Q3, at $69 per barrel, the company generated excess free cash flow. With cash flow including working capital variation more than covering net investments, plus $4.5 billion of shareholder returns in the form of dividends and buyback. It's leading me to shareholder returns. The company, of course, continues its strong track record of dividend growth.

Speaker #3: As we have released this quarter of $1.3 billion . And lastly , of course , all these elements improved the gearing , which is now close to 70% compared to next to 18% .

Speaker #3: So the end result is that during the third quarter , at $69 per barrel , the company generated excess free cash flow with cash flow , including working capital variation more than covering net investment , plus $4.5 billion of shareholder returns in the form of dividends and buybacks .

Speaker #3: It's leading me to shareholder returns . The company , of course , continues its strong track record of dividend growth . The board of directors decided to increase the third interim dividend of close to 8% in euro , and more than 10% in dollars , compared to 2024 on the buyback side , as announced on September 24th , the board of directors authorized up to $1.5 billion of share buybacks for the fourth quarter of 2025 and therefore , assuming annual cash flow between 27.5 and $28 billion .

Patrick Pouyanné: The board of directors decided to increase the first interim dividend of close to 8% in EUR and more than 10% in dollars compared to 2024. On the buyback side, as announced on 24 September, the board of director authorized up to $1.5 billion of share buyback for Q4 2025. Therefore, assuming annual cash flow between $27.5 and 28 billion, in particular supported by the better refining margin that we observe currently. The 2025 payout ratio is expected to remain around 56%. Looking forward, we expect to maintain a strong momentum for Q4. Upstream production is anticipated to grow more than 4% year-over-year like this quarter. The net investments are expected to decrease quarter-over-quarter, in particular, because we will deliver the disposal proceeds, $2 billion are expected.

Speaker #3: In particular , supported by the better refining margin that we observe currently , the 2025 payout ratio is expected to remain around 56% .

Speaker #3: Looking forward , we expect to maintain a strong momentum for the fourth quarter . Upstream production is anticipated to grow more than 4% year on year .

Speaker #3: Like this quarter . The net investments are expected to decrease quarter over quarter . In particular , because we will deliver the disposal proceeds to billion dollars .

Speaker #3: I expected and at the end , the net of acquisitions will represent $1.5 billion of inflow cash inflow in the balance sheet , and that with another anticipated positive contribution from the seasonal working capital , we anticipate to continue to strengthen the balance sheet with gearing forecasted for further decline to 1,516% at year end .

Patrick Pouyanné: At the end, the net of acquisition to represent $1.5 billion of inflow, cash inflow in the balance sheet. That with another anticipated positive contribution from the seasonal working capital, we anticipate to continue to strengthen the balance sheet with gearing forecasted 30% decline to 15%, 16% at year-end. Last but not least, we have board of directors have approved the roadmap to transform our ADRs into ordinary shares. We're happy to announce that we ordered today, JPMorgan, to launch the termination process of the ADR program, with the objective that ordinary shares are expected to begin trading on the New York Stock Exchange from 8 December. This is, of course, a significant important milestone for the company, as it will allow for a single class of TotalEnergies shares to trade with extended hours.

Speaker #3: Last but not least, we have directors as approved. The roadmap to transform our ideas into only nourishes, and I'm happy to announce that we ordered today JPMorgan to launch the termination process of the ADR program, with the objective that ordinary shares are expected to begin trading on the New York Stock Exchange from December 8th.

Speaker #3: This is , of course , important milestone for the company , as it will allow for a single class of TotalEnergies shares to trade with extended hours will be essentially a continuous listing from Paris 9 a.m.

Patrick Pouyanné: It will be essentially a continuous listing from Paris 9:00AM to New York 4:00PM, 10:00PM Paris time. We hope that these ordinary shares listing will be a clear catalyst for the stock in 2026 in both Paris and New York markets, and we intend to market these ordinary shares on the US market even more actively than today. I will now turn the call over to Jean-Pierre, who will go through the details of this Q3 financials.

Speaker #3: to New York , 4 p.m. 10:10 p.m. Paris time . And we hope that this ordinary shares listing will be a clear catalyst for the stock in 2026 .

Speaker #3: In both Paris and New York markets , and we intend to market this ordinary shares on the US market even more actively than today .

Speaker #3: I will now turn the call over to Jean-Pierre , who will go through the details of this first quarter financials . Thank you .

Speaker #3: Patrick . I will start by commenting on the price environment in the third quarter versus the second quarter .

Jean-Pierre Sbraire: Thank you, Patrick. I will start by commenting on the price environment in Q3 versus Q2. Brent averaged $69 per barrel during Q3 versus $68 per barrel in Q2, up 2%, down more than $10 per barrel compared to Q3 2024. TTF averaged $11.3 per million BTU versus $11.9 per million BTU, down 6%. The average LNG price decreased to $8.9 per million BTU versus $9.1 per million BTU, down 2%. On the other side, for refining, the European refining margin significantly improved to $63 per ton compared to $35 per ton during Q2, up close to 80%.

Speaker #4: Brent .

Speaker #3: Averaged $69 per barrel during the first quarter versus $68 per barrel in the second quarter , up 2% , but down more than $10 per barrel compared to the third quarter of 20 .

Speaker #3: For EDF . Averaged $11.3 versus $11.9 per debut , down 5% , and .

Speaker #4: The average LNG price decreased to $8.9 per million versus $9.1 per million , down 2% on the other side for refining the European refining margin significantly improved to 63% compared to $35 per ton during the second quarter , up close to 80% in this price environment , the company reported strong financial results with third quarter 25 cash flow increasing by 7% compared to the second quarter and adjusted net income increasing by 11% .

Jean-Pierre Sbraire: In this price environment, the company reported strong financial results with Q3 2025 cash flow increasing by 7% compared to the Q2, and adjusted net income increasing by 11%, thanks to the continued positive impacts of the new attractive upstream barrels and strong downstream results that reflect the company's ability to capture higher refining margins in Europe. Overall, profitability remains strong, with return on equity for the 12 months ending 30 September at 14.2% and ROACE close to 12.5%. Moving now to the business segment, starting with hydrocarbons. On a year-on-year basis, Q3 hydrocarbons production exceeded expectations and increased by more than 4%, making it the company's highest growth quarter so far this year.

Speaker #4: Thanks to the continued positive impact of the new attractive upstream barriers and strong downstream results that reflects the company's ability to capture higher refining margins in Europe .

Speaker #4: Overall , profitability remains strong , with return on equity for the 12 months ending September 30th at 14.2% and close to 12.5% . Moving now to the business segment , starting with hydrocarbons on a year on year basis , third quarter hydrocarbons production exceeded expectations and increased by more than 4% , making it the company's highest growth quarter so far this year .

Speaker #4: We anticipate that this trend will continue, with hydrocarbon production expected to grow more than 4% compared to the fourth quarter of 2024.

Jean-Pierre Sbraire: We anticipate that this trend will continue, with Q4 hydrocarbon production expected to grow more than 4% compared to Q4 2024, notably benefiting from the restart of Ichthys LNG in Australia. Turning to the quarterly results and starting with exploration and production. This segment generated during Q3 2025 an adjusted net income of $2.2 billion, up 10% quarter-over-quarter in a similar price environment and outpacing quarter-over-quarter E&P production growth of around 4%. Similarly, cash flow growth was strong at $4 billion, up 6% quarter-over-quarter. Importantly, our project portfolio is delivering new low cost, low emission oil and gas production that is attractive, with an average upstream FFO per barrel that is roughly two times the base portfolio. Regarding on E&P projects, we are progressing on all fronts.

Speaker #4: Notably benefiting from the restart of LNG in Australia . Turning to the quarterly results and starting with exploration and production , this segment generated during the third quarter 25 an adjusted net income of $2.2 billion , up 10% , up 10% quarter over quarter .

Speaker #4: In a similar price environment and outpacing quarter over quarter . End production growth of around 4% . Similarly , cash flow growth was strong at $4 billion , up 6% quarter over quarter .

Speaker #4: Importantly , our project portfolio is delivering new low cost , low emission oil and gas production that is accretive with an average upstream FFO per barrel that is roughly two times the base portfolio .

Speaker #4: Regarding an EMP project , we are progressing on all fronts on the project side , we achieved first oil at the Begonia and closed at three offshore fields in Angola , and we sanctioned phase two of the redevelopment of the oil fields in Iraq , which is part of the GDP project .

Jean-Pierre Sbraire: On the project side, we achieved first oil at the Begonia and Clara Field offshore fields in Angola, and we sanctioned phase two of the redevelopment of the Ratawi oil fields in Iraq, which is part of the GGIP project. As we have now launched all phases of GGIP, we are looking forward to the first oil for phase one of the redevelopment early 2026. On M&A, the company is consistently high-grading its portfolio. During the last earnings call, we mentioned that we are expecting several E&P divestments in the second half of the year. During Q3, we divested 2 unconventional blocks in Vaca Muerta in Argentina, which closed this quarter, and 3 satellite fields on Wistla in Norway, out of our strict investment criteria, which is expected to close in Q1.

Speaker #4: As we are now launched , all phases of GIP , we are looking forward to the first oil for phase one of the redevelopment .

Speaker #4: Early 26 , an M&A . The company is consistently upgrading its portfolio during the last earnings call , we mentioned that we are expecting several ENP divestments in the second half of the year and during the third quarter , we divested two international blocks in Vaca muerta in Argentina , which closed this quarter , and three satellite fields on necrosis in Norway .

Speaker #4: Out of our strict investment criteria , which is expected to close in the fourth quarter . And lastly , on exploration , we continue to reload the output complement existing opportunities .

Jean-Pierre Sbraire: Lastly, on exploration, we continue to reload the hopper to complement existing opportunities. This quarter, we announced new license awards in Algeria, in the Republic of the Congo, and in Libya. Moving to integrated LNG. Q3 LNG sales of 10.4 million tons were essentially flat quarter-over-quarter, as third-party purchases offset lower sales from equity production. Cash flow of $1.1 billion was in line with Q2 in a stable price environment, with an average energy price of around $9 per million BTU. Adjusted net operating income of $0.9 billion was down 18% quarter-over-quarter, primarily due to the planned shutdowns at Ichthys LNG in Australia that impacted production by around 50,000 barrel of oil equivalent per day for the quarter.

Speaker #4: And this quarter we announced new license awards in Algeria in the Republic of the Congo and in Liberia , moving to integrated LNG .

Speaker #4: Third quarter LNG sales of 10.4 million tons were essentially flat quarter over quarter at 1230 , purchased purchases offset lower sales from equity production cash flow on one off $1.1 billion was in line with the second quarter in a stable price environment , with an average price of around $9 per BTU adjusted net operating income of $0.9 billion was down 18% quarter over quarter , primarily due to the planned turnarounds at LNG in Australia that impacted production .

Speaker #4: But by around 50,000 barrels of oil equivalent per day for the quarter on the price of look forward European gas prices continue to be sustained at around $11 per year for the first quarter of 25 , as winter 2526 , due to anticipated winter demand .

Jean-Pierre Sbraire: On the price outlook, forward European gas prices continue to be sustained at around $11 per million BTU for Q1 2025 as winter 2025, 2026 due to anti-anticipated winter demands. Given the evolution of oil and gas prices in the recent months and the lag effect on pricing formulas, the company anticipates an average energy selling price of around $8.5 per million BTU for Q1 2025. On the adjustment of our LNG strategy, we are pleased to continue to grow our US presence with the recent FID on Rio Grande LNG train 4 in South Texas. We enhanced resilience in our LNG and gas to power strategy by acquiring interest in shale gas assets from Continental Resources in the Anadarko Basin in the US. Turning to integrated power.

Speaker #4: Given the evolution of oil and gas prices in the recent months and the lag effect on pricing formulas , the company anticipates an average and selling price of around $8.5 per milliliter for the first quarter of 25 on the assessment of our LNG strategy , we are pleased to continue to grow our US presence with the recent side on Rio Grande LNG 24 .

Speaker #4: In South Texas and we enhanced resilience in our LNG and gas to power strategy by acquiring interests in shale gas assets from Continental Resources in the Anadarko Basin in the US .

Speaker #4: Turning to integrated power net power generation increased 9% quarter over quarter to 12.6 terawatt hours due to increased output from flexible generation capacity in Europe , the value of total energy unique integrated module is illustrated in the first quarter .

Jean-Pierre Sbraire: Net power generation increased 9% quarter-over-quarter to 12.6 terawatt-hour due to increased outputs from flexible generation capacity in Europe. The value of TotalEnergies unique integrated model is illustrated in the Q3 financials. Total cash flow from operations was $0.6 billion, up 9% quarter-over-quarter and in line with annual guidance. To provide more granularity in the integrated power financial performance, this quarter, we disclose the splits in cash flow between production assets, renewable and gas-fired power plant on one side, and sales activity, B2B, B2C, and trading on the other side, showing that each contributed equally this quarter.

Speaker #4: Financials . Total cash flow from operations was $0.6 billion , up 9% quarter over quarter and in line with annual guidance to provide more granularity in the integrated power financial performance .

Speaker #4: This quarter , we disclose the split in cash flow between production assets , renewable and gas fired power plants . On one side and sales activity .

Speaker #4: B2B , B2C and trading on the other side , showing that each contributed equally . This quarter . During Q3 for three . During the third quarter , the company has executed well on the down side of its integrated power business model , which contributes capital , recycling and will generate a tailwind for free cash flow in the fourth quarter .

Jean-Pierre Sbraire: During Q3, the company has executed well on the farm-down side of its integrated power business model, which contributes capital recycling and will generate a tailwind for free cash flow in Q4. The company signed an agreement for the sale of 50% of the 1.4 gigawatts renewable portfolio in North America and closed the sale of 50% of the 270 megawatts renewable portfolio in France. These deals have a combined cash impact of around $1.5 billion. In this deal, TotalEnergies retains a 50% stake in the assets and will continue to be the operator after closing and to upstate 100% of the electrons. This is in line with our business model. As an important reminder, our accredited upstream growth is not the only contributor to the company's resilience.

Speaker #4: The company signed an agreement for the sale of 50% of the 1.4GW renewable portfolio in North America and closed the sale of 50% of the 270 megawatt renewable portfolio in France .

Speaker #4: This deal has a combined cash impact of around $1.5 billion. In this deal, TotalEnergies retains a 50% stake in the assets and will continue to be the operator.

Speaker #4: After closing and to offset 100% of the electrons . This is in line with our business model as an important reminder , our upstream growth is not the only contributor to the company's resilience integrated power will take a key role in this too , since it is a different than growing cash flow stream that is outside of crude cycles and with strong demand from amounts moving to downstream , as mentioned during the third quarter , downstream efficiently captured the high refining margins in Europe and contributed to the company resilience , financial resilience , financials .

Jean-Pierre Sbraire: Integrated power will take a key role in this too, since it is a different category than growing cash flow stream that is outside of group cycles and with strong demand fundamentals. Moving to downstream. As Patrick mentioned, during Q3, downstream efficiently captured the high refining margins in Europe and contributed to the company resilient financials. Q3 adjusted net operating income of $1.1 billion was up more than 30% quarter-over-quarter. Cash flow of $1.7 billion was up 11% quarter-over-quarter, thanks to good availability of assets that allowed us to successfully capture improved European margins. In terms of free cash flow, during Q3, downstream cash flow from operating activities exceeded net investment by over $2.5 billion.

Speaker #4: Third quarter adjusted net operating income of $1.1 billion was up . More than 30% quarter over quarter . Cash flow of $1.7 billion was up 11% quarter over quarter , thanks to good reliability of assets allowed us to successfully capture , improve European margins in terms of free cash flow during the first quarter , downstream cash flow from operating activities exceeded net investment by over $2.5 billion in refining the European refining margins during the first quarter due to the tension on the supply chain in the context of low inventories , utilization was 84% , which was towards the high end of the guidance range of 80 to 85% , and it reflects efficient operations and planned turnarounds at posture in the U.S.

Jean-Pierre Sbraire: In refining, the European refining margin marker strengthened during Q3 due to the tension on the diesel supply chain in the context of low inventories. Utilization was 84%, which was towards the high end of the guidance range of 80% to 85%, and it reflects efficient operations and plant turnarounds at Port Arthur in the US and HTC in Korea. In marketing and services, results remained consistently strong with high-margin activities offsetting lower volumes. Looking ahead, we anticipate refining utilization of 80% to 84% in Q4, which accounts for scheduled turnarounds at Antwerp and SATORP. Moving now to the company level and starting with working capital. As expected, we benefited from a working cap release during Q3, which was a $1.3 billion positive contribution to cash. Furthermore, for Q4, we anticipate another positive contribution.

Speaker #4: and HTC in Korea . In marketing and services results remain consistently strong , with high margin activities offsetting lower volumes . Looking ahead , we anticipate refining utilization of 80 to 84% in the fourth quarter , which accounts for scheduled turnarounds .

Speaker #4: The end . Moving now to the company level and starting with working capital . As expected , we benefited from a working cap release during the first quarter , which was a $1.3 billion positive contribution to cash .

Speaker #4: Furthermore , for the fourth quarter , we anticipate another positive contribution a net investment they meaningfully decreased to $3.1 billion in the first quarter , which includes $0.4 billion of divestment , net of acquisitions in the first quarter .

Jean-Pierre Sbraire: On net investments, they meaningfully decreased to $3.1 billion in Q3, which includes $0.4 billion of divestment net of acquisitions. In Q1, Q4, as mentioned by Patrick, disposals are estimated to total $2 billion, including the closing of Nigeria and Norway divestments for exploration and production, as well as farm-down of renewable assets in North America and Greece for integrated power. We reiterate full year 2025 net investment guidance of $17 to 17.5 billion. Based on anticipated net investments and working cap, we expect gearing to decrease to 15% to 16% at year-end, compared to 17.3% at the end of Q3.

Speaker #4: The fourth quarter , as mentioned by Patrick Disposal , are estimated to total $2 billion , including the closing of Nigeria and Norway , divestment from exploration and production , as well as foundation of renewable assets in North America and Greece .

Speaker #4: For integrated power and we reiterate full year 25 net investment guidance of 17 to $17.5 billion , based on anticipated net investment and working capital .

Speaker #4: We expect gearing to decrease to 15 to 16% at year end compared to 17.3% at the end of the third quarter , with that , Patrick and I are now available to answer your questions .

Patrick Pouyanné: With that, Patrick and I are now available to answer your question and the operator. Please open up the line for questions.

Jean-Pierre Sbraire: With that, Patrick and I are now available to answer your question and the operator. Please open up the line for questions.

Speaker #4: And the operator so please open the line for questions .

Speaker #2: Thank you , ladies and gentlemen , we will now begin the question and answer session . As a reminder , if you wish to ask a question , please press Star One on your telephone and wait for your name to be announced .

Operator: Thank you. Ladies and gentlemen, we will now begin the question and answer session. As a reminder, if you wish to ask a question, please press star and one on your telephone and wait for your name to be announced. Please kindly mute any audio sources by asking a question. If you wish to cancel your request, please press the hash key. Once again, please press star and one if you wish to ask a question. The first question is from Lydia Rainforth, Barclays. Please go ahead.

Speaker #2: Please kindly mute any audio sources by asking a question . If you wish to cancel your request , please press the the Hash key .

Speaker #2: Once again , please press star and one . If you wish to ask a question , the first question is from Lydia Rainforth Barclays .

Speaker #2: Please go ahead .

Speaker #5: Thank you and good afternoon to both of you , and thank you for the presentation . Two questions , if I could . The first one , can I just get your clarification on where we are on the tax issues in France ?

Lydia Rainforth: Thank you, and good afternoon to both of you, and thank you for the presentation. Two questions if I could. The first one, can I just get your clarification on where we are on the tax issues in France? I've seen headlines this morning about tax on share buybacks, what that actually means. The second one, I think, Patrick, this comes back to your point around the growth in production is obviously doing quite well, but also the growth in cash flow numbers. When you're thinking about 2026, can you give us an indication as to how much more cash flow might grow than production for next year? Just remind us of that. Thank you.

Speaker #5: I've seen headlines this morning about tax on share buybacks . What that actually means . And then the second one I think , Patrick , this comes back to your point around the growth in production is obviously doing quite well , but also the growth in cash flow numbers .

Speaker #5: So when you're thinking about 2026 , can you just can you give us an indication as to how much more cash flow might grow than production for next year ?

Speaker #5: And just remind us of that . Thank you .

Speaker #3: Okay . Good morning . Good afternoon Lydia . Well , first , as you observe , it's quite a huge quite a big fiscal creativity in the French parliament in the last days .

Patrick Pouyanné: Okay. Good morning. Good afternoon, Lydia. Well, first, as you observe, there is quite a huge or quite a big fiscal creativity in the French parliament these last days. Clearly the full recipe will not work. We don't know, you know. Be careful not to overreact to the night news. There was a super tax on multinationals, which is completely out of the rule of law. You know, France has signed as one of the 25 fiscal agreements with many countries. The principle is no double taxation, this is very anchored. As the government reminded to the parliament, this is the right rule, so we will not be touched by that.

Speaker #3: And clearly , the full recipe will not work . And we know , you know . So be careful not to overreact to the night news .

Speaker #3: There was a super tax on multinationals , which is completely out of the rule of law in France , assigned as 125 fiscal agreements with many countries , the principles of double taxation and this is a very incurred .

Speaker #3: And as the government reminded to the Parliament , this is the right rule . So we will not be touched by that . And , you know , there is also in the Constitution some already decisions when you want to tax above what is reasonable , then there is this type of taxation are not approved or cancelled .

Patrick Pouyanné: You know, there is also in the Constitution some already decision when you want to tax above what is reasonable, then there is these type of taxations are not approved or are canceled. Honestly, you know, the situation, political situation in France is not very stable. There is a huge debate making a lot of noise. I trust that at the end of the day we learn to reasonable avenue. As you all know as well, we, TotalEnergies, does not make a lot of benefit in France. I would say we'll follow this debate.

Speaker #3: So honestly , you know , the situation , political situation in France is not very stable . There is a huge debate making a lot of noise , but I trust that at the end of the day , we learn to a reasonable avenue .

Speaker #3: And as you all know as well , we TotalEnergies does not make a lot of benefit in France . So I would say we'll we'll follow this debate .

Speaker #3: But again , I'm comfortable with the fact that at the end of the day , governments will take the right decisions to maintain , in fact , which is fundamental .

Patrick Pouyanné: I'm comfortable with the fact that at the end of the day, government will take the right decisions to maintain, in fact, which is fundamental, what we told the supply policy to, you know, if you want, before to redistribute in a country, you need to create wealth. You need to produce. You need to create results, revenues, and then you can speak about distribution. We will come back to that. I'm, I understand that. I think, by the way, that this situation in France is waiting on the share price of TotalEnergies. I remind you as well that we are a global company. Roughly 90%, 95% I think of our cash flows and our results are not coming from our country where we have the exposure.

Speaker #3: What we told the supply policy to , you know , if you want , before to redistribute in a country , you need to create wealth , you need to produce , you need to create revenues , and then you can speak about distribution .

Speaker #3: And we will come back to that . So I'm I understand that and I think that the way that this situation in France is waiting on the share price of TotalEnergies , but I remind you as well that we have a global company and but again , we actually 90 , 95% , I think , of our cash flows and our results are not coming from our country where we have future .

Speaker #3: So again , I think we have from this perspective , the profile of TotalEnergies is quite different from other French companies . And that's market should integrate it for 2026 .

Patrick Pouyanné: Again, I think from this perspective, the profile of TotalEnergies is quite different from other French companies, and that market should integrate it. For 2026, honestly, Lydia, you are asking me a question onto which I will answer more precisely in February. As we know, we have a meeting point and your results and what is the plan for 2026. I mean, as I told you in New York, we anticipate a growth of 3%, more than 3% for 2026 again. For the cash flows, I don't have all the figures. Of course, it's related to the new production coming on stream. Part of the, I would say new production of 2025, like the Brazilian production, will have a full effect in 2026.

Speaker #3: Honestly , Lydia , you are asking me a question on to which I will answer more precisely in February . As we know we have a meeting point and your results .

Speaker #3: And what is the plan for 26 ? So , I mean , as I told you , in New York , we anticipate to grow 3% , more than 3% for 26 .

Speaker #3: Again , for the cash flow . I don't have all the figures . Of course , it's related to the new production coming on stream , but part of the , I would say , new production of 25 , like the Brazilian production , will have the full effect in 26 .

Speaker #3: So I anticipate another accretive effect on our creative effects . The size of it . I mean , you have to be a little patient , but again , clearly we are in a delivery mode .

Patrick Pouyanné: I anticipate another accretive effect on our accretive effect. The size of it, I mean, you have to be a little patient. Again, it's clearly we are in a delivery mode. We deliver the production growth more than 3. This year probably be next to 4. In fact, at the end of the year, other than 3, like 3.5 to 4 for 2025 next year, that is 3. Let's deliver the, okay, the accretive cash. You know, this is a roadmap, not only 2025, 2026 for the next 5 years. The famous we reminded you and we actually gave you comfort during the New York presentation, that we will deliver this $10 billion of additional free cash from all our segments, from, in the next 5 years.

Speaker #3: We deliver the production growth more than three than this year probably would be next to four . In fact , at the end of the year , other .

Speaker #3: 3.5 to 4 for 25 next year, at least three. And then let's deliver the okay. The accretive cash. But you know, this is a roadmap not only for 2025-2026 but for the next five years.

Speaker #3: And the famous we reminded you, and we I think gave you comfort during the New York presentation. We will deliver this $10 billion of additional free cash from all segments over the next five years.

Speaker #6: Perfect . Thank you .

Lydia Rainforth: Perfect. Thank you.

Speaker #2: The next question is Michela della Vigna . Goldman Sachs , please go ahead .

Operator: The next question is, Michele Della Vigna, Goldman Sachs. Please go ahead.

Speaker #7: Thank you and congratulations on the strong growth . Two questions , if I may . First , I was wondering if you feel like you're able at the moment to capture the extraordinary refining margins we're seeing and how the improvements to your Port Arthur and Dodge refineries are progressing .

Michele Della Vigna: Thank you, and congratulations on the strong growth. Two questions if I may. First, I was wondering if you feel like you're able at the moment to capture the extraordinary refining margins we're seeing and how the improvements to your Port Arthur and Donges refineries are progressing. Secondly, I was just wondering what you're seeing in terms of disruptions of the Russian volumes following the latest sanctions, and if you start to see an impact on the physical market through your trading and optimization division. Thank you.

Speaker #7: And then secondly , I was just wondering what you're seeing in terms of disruptions of of the Russian volumes following the latest sanctions .

Speaker #7: And if you start to see an impact on the physical market through your trading and optimization division , thank you .

Speaker #3: Thank you for this question , to be honest , when I read again your press release . I think we were a little bearish on the oil price and the refining margin .

Patrick Pouyanné: Thank you for this question, Michele. To be honest, when I read again our press release, I think we are a little bearish on the oil price and the refining margins. The refining margins that we capture since the beginning of October for the last month is around $75 per ton. When we guided you at above 50, I think we are a little shy. In fact, it's fundamentally linked because we begin to see real impact in the market of these last Russian sanctions. I think the market is underestimating what it means when you have US sanctions against two large Russian company, which are the core of trading Russian oil, by the way. When Europe say that we are targeting countries, which are considered, I would say, dangerous like India, Turkey, and China.

Speaker #3: So refining margins that we capture since the beginning of October for the last month is around $75 per ton . So when we guided you at about 50 , I think we are a little shy .

Speaker #3: And in fact , it's fundamentally linked because we begin to see real impact in the market of this last session . Sanctions , I think the market is underestimating what it means when you have a US sanctions against large to large Russian companies , which are the core of trading Russian oil .

Speaker #3: By the way , and when you have said that we are targeting countries which are considered , I would say dangerous , like India , Turkey and China , and but if you trade all or products from these countries , you could be under sanction .

Patrick Pouyanné: In fact, if you trade oil or products from these countries, you could be under sanction. The reaction today in the market, I shared some views with some of my colleagues, including in, I was in Riyadh last two days. they are still is today, including trading hours as well, are more cautious. We see that everybody is taking this risk very seriously, including secondary sanctions, you know, which might become. I see some impact. I think the, really, the refining margins today instantly is more around $100 per ton than the $75 as an average.

Speaker #3: The reaction today in the market and I shared some views with some of my colleagues , including in I was in Riyadh last two days .

Speaker #3: I can clearly today trading house as well are more cautious and we see that everybody is taking this risk very seriously , including secondary sanctions .

Speaker #3: You know , which might become and so I see I see some impact . And I think the , refining margins today is in is more around $100 per tonne than the 75 on average .

Speaker #3: And it is linked clearly to , in fact , this sanctions will oblige to reroute some volumes and to find a way to to bring , I would say , products and crude oil in a more extensively to the different locations of the planet .

Patrick Pouyanné: It is linked clearly to, in fact, this sanction will oblige to reroute some volumes and to find a way to bring, I would say, products and crude oil in a more expensively to the different locations of the planet. I think this is clear. That also could have an impact as well on the oil price, I mean, the crude oil price. We've seen a reaction with either announce today is still $65, but $65, I think is a good assumption for this quarter, maybe a little more. I'm, I would say, more bullish.

Speaker #3: So I think this is clear that also could have an impact on the on the oil price and the crude oil price . We've seen a reaction announced today is still $65 , but $65 , I think is a good assumption for this quarter .

Speaker #3: Maybe a little more . So I would say more bullish . That's what we wrote a few days ago , because I begin to realize that these sanctions will have a real impact in this market .

Patrick Pouyanné: That's what we wrote few days ago because they begin to realize that these sanctions will have a real impact in this market, and most of the players are taking that seriously, which is good, by the way. TotalEnergies, as you know, we stopped trading any Russian oil for since end of 2022. Somewhere, we penalize ourselves compared to other practice, but I think it was the right way to comply and to be strict on the Russian sanctions. Capturing the refining margins, for sure, the good news of Q1 is that we managed to do it. We had a turnaround on Port Arthur, which is done, so it's fully back online, now. Those as well is running.

Speaker #3: And most of the players are becoming are taking them seriously , which is good . TotalEnergies you know , we stopped trading any Russian oil for since end of 22 somewhere .

Speaker #3: We penalize ourselves compared to other practice . But I think it was the right way to comply and to be strict on the Russian sanctions .

Speaker #3: So capturing the refining margins is for sure the good news of third quarter is that we managed to do it . We had a turnaround in Port Arthur , which is done .

Speaker #3: So it's fully back on line now . As well . Is running . So it's not fully not to last . Equipment . We are waiting for by the end of the year .

Patrick Pouyanné: Let's say not fully, not the last equipment we are waiting for by the end of the year, but it's running, so we deliver results. The Q4, we have two turnarounds, one in Antwerp, one in SATORP, which are two big machines in our reserve. I expect that this will be, I would say, that's all compensated again by the overall assets and by the fact that the margins are higher. I'm positive. When I gave you a guidance of 27.5 for 28, I was maybe too bearish by stating 27 in New York.

Speaker #3: But it's running so we deliver results . The third quarter . Fourth quarter we have two turnarounds . One in Antwerp , one in which are two big machines in our results .

Speaker #3: But I expect I would be I expect that this will be . I would say so compensated again by the overall assets and by the fact that the margins are are higher .

Speaker #3: So I'm , I'm positive . And when I gave you a guidance of 27.5 for 28 , I was maybe too bullish by stating 27 in New York , it's because as well , I integrate these elements , which again , and the duty and all the organization of refining chemicals and Vincent are dedicated to capture these margins , which are good .

Patrick Pouyanné: It's because as well, I integrate these elements, which again, and the duty and, on all the organization of Refining & Chemicals and Vincent Stoquart are dedicated to capture these margins, which are good. This is where we are, and I'm bullish on that.

Speaker #3: So this is where we are . And I'm bullish on that .

Speaker #7: Thank you .

Doug Leggate: Thank you.

Speaker #2: The next question is from Doug Leggate Wolfe Research . Please go ahead .

Operator: The next question is from Doug Leggate, Wolfe Research. Please go ahead.

Speaker #3: Thank you .

Speaker #8: Good morning . Patrick , I , I wonder if I could start with your upstream margin . The volume guidance is again pretty strong for Q4 .

Doug Leggate: Thank you. Good morning, Patrick and Jean-Pierre. I wonder if I could start with your upstream margin. The volume guidance is, again, pretty strong for Q4, but what we're, well, I guess what we're observing is that your upstream margin seems to be moving up as well as the volumes. I'm trying to understand what happens as the mix changes going forward. For example, Iraq never historically had great margins. How do you see the margin mix continuing as the growth trajectory sustains over the next several years? That's my first question. My second question, if I may, is it a quick one? Oil appears still to be in a very technical market, we all see the oversupply, but it seems to keep bouncing around that 60 level.

Speaker #8: But what we're I guess what we're observing is that your upstream margin seems to be moving up , as well as the volumes .

Speaker #8: And I'm trying to understand what happens as the mix changes going forward . So , for example , Iraq never historically had great margins .

Speaker #8: So how do you see the margin mix continuing as the growth trajectory sustains over the next several years ? That's my first question .

Speaker #8: And my second question , if I may , is there a quick one ? Oil appears still to be in a very technical market .

Speaker #8: So we all see the oversupply , but it seems to keep bouncing around that 60 level . I guess my question is , if you ended up with better cash flow than you thought when you reset the .

Doug Leggate: I guess my question is, if you ended up with better cash flow than you thought when you reset the buyback, what would be the first call on cash? Would it go to the balance sheet to continue the deleveraging, or would it go to the higher end of the buybacks? Thank you.

Speaker #8: Buyback , what would be the first call on cash ? Would it go to the balance sheet to continue deleveraging , or would it go to the higher end of the buybacks ?

Speaker #8: Thank you .

Speaker #3: The second question is clear . It will go to the balance sheet . So the second answer I would say it's clear . We'll go to balance sheet .

Patrick Pouyanné: The second question is clear. It will go to the balance sheet.

Doug Leggate: Thank you.

Patrick Pouyanné: er, I would say, is clear. It will go to the balance sheet. It will go to the balance sheet because I observe that, and I have, I spend quite a lot of time with investors in the last month. And clearly, or I would say, long-term investor, deleveraging Brent is important, you know, for all of us. And if you want to be the best buyback policy would be to become so cyclical. To become so cyclical, you have a stronger, strong balance sheet. So that's a position I would take and keep. Consider the guidance we gave you. I would give you quite a good guidance. And we told you $0.75 to $1.5 between $60 and $72 billion and $80. That's. And I'm answering for 2026, to be clear

Speaker #3: We'll go to the balance sheet because I observed that . And I have spent quite a lot of time with investors in the last month .

Speaker #3: And clearly oh , I would say a long term investor . Diverging branches important , for all of us . And if you want to be the best , best buy back policy would be to become a cyclical , to become toxic .

Speaker #3: You have a stronger balance sheet . So that's the position I would take . And keep you . So consider the guidance we gave you .

Speaker #3: I will give you quite a good guidance and we told you point 7 to 1.5 within 60 . And $72,000,000,080 . That's and I'm answering for clear , if we continue and we see the plan to deliver more and 26 .

Speaker #3: To be more free cash on the roadmap to 10 billion , then we might revisit the scheme . But today , in 26 , if it's coming in your case , if we are above 16 , 26 or about 70 , then we will continue to deleverage upstream margins .

Patrick Pouyanné: If we continue, we see the plan to deliver more and more free cash on the roadmap to $10 billion, then we might revisit this scheme. Today in 2026, if it's coming, in your case, if we are above 60 and 2026 or above 70, then we'll continue to deleverage. Upstream margins. Iraq is a good contract, so I know it's slightly, but it's not at all the case. You know, as we always told, or as I told you, we are far away from the historical service contract. We have, when we came back in Iraq, it was clear that either we are a good contract, a strong contract.

Speaker #3: No , Iraq is a good contract , so I know it's directly , but it's not at all decrease . You know , as we always thought , as I told you , we are far away from the historical service contract .

Speaker #3: We have . When we came back in Iraq was clear that either we had a good contract , a strong contract , it was a matter of risk and reward , you know , and risk and reward .

Patrick Pouyanné: It was a matter of risk and reward, you know, and risk and reward, and in particular, the Iraqi contract is quite reactive to the oil price. We capture some upside on it, which of course is important. We benefit in Iraq from a quite low cost production, so the breakeven is low. I'm, it will contribute. The Iraqi barrels, don't make a mistake, are contributing to the increase or are accretive. Again, you know, can give you a bit I think we gave you in New York, but in fact the base barrels at an average around $19, 20 per barrel. With today, these new barrels are more between $30 and 40 per barrel. It's why we have an accretive growth in upstream.

Speaker #3: And in particular , the Iraqi contract is quite reactive to the oil price . We capture some upside on it , which of course is important .

Speaker #3: We benefit in Iraq from quite a low cost production . the break even is low . And so it will contribute the Bowers don't make a mistake .

Speaker #3: Are contributing to the increase of are accretive . And again you know can give you a bit I think we gave you in in New York and that So in fact the the base bowels and the average around $1,920 per barrel .

Speaker #3: And today these new barrels are more between 30 and $40 per barrel . So it's why we have an excessive growth in upstream .

Speaker #3: So I think you will continue to see again the free cash flow from upstream will move quicker than the growth of production .

Patrick Pouyanné: I think you will continue to see again, the free cash flow from upstream will move quicker than the growth of production.

Speaker #8: It's very helpful . Thank you guys .

Biraj Borkhataria: That's very helpful. Thank you, guys.

Speaker #2: The next question is Biraj Borkhataria RBC . Please go ahead .

Operator: The next question is Biraj Borkhataria, RBC. Please go ahead.

Speaker #9: Hi . Thanks for taking my question . And firstly , it's nice to see that production growth being the accretion coming through that really is a differentiator .

Biraj Borkhataria: Hi. Thanks for taking my question. Firstly, nice to see that production growth being the accretion coming through. That really is a differentiator. Two questions. The first was on the divestments for the year. I know you mentioned Nigeria in the $2 billion. I believe there were two deals that you're planning to do, one of which wasn't approved. Could you just outline whether the SPDC site, is that in the $2 billion, or is that on top of the $2 billion? Then secondly, recently you signed a letter with a number of other CEOs around European competitiveness. I was just wondering if you could talk about whether that letter has actually catalyzed, you know, any kind of response on the policy front. Any color there would be helpful. Thank you.

Speaker #9: Two questions . The first one is on the divestments for the year . I note you mentioned Nigeria in the 2 billion . I believe there was there were two deals that you were planning to do , one of which wasn't approved .

Speaker #9: So could you just outline whether the SPDC site that sale was , is that in the 2 billion , or is that on top of the 2 billion ?

Speaker #9: And then secondly , recently you signed a letter with a number of other CEOs around European competitiveness . I was just wondering if you could talk about whether that letter has actually catalyzed any kind of response on the policy front ?

Speaker #9: Any color there would be helpful . Thank you .

Speaker #4: Yes .

Speaker #3: What is your second question ? Sorry I didn't catch it . Well , okay I understood . I know okay , I know , I know , I know okay , I you open competitiveness letter okay .

Patrick Pouyanné: What is the second question? Sorry, I didn't catch it well. Okay, I understood. I know. Okay. I know. Okay, I understood. European competitiveness letter. Okay. First, on divestments, I will be very precise with you. The $2 billion, I will give you where it's coming from. We intend to close, and we have already closed some of them, but we are intending to close. All, I think we have signed, and we are in the process, and it's a matter of closure. The Bonga divestment in Nigeria, Norway, the satellite Ekofisk fields. Some renewable assets in the US, renewable assets which are, will be announced in Greece. As well, we have another project where we will, but I cannot yet disclose the group.

Speaker #3: First on divestments I will be very precise with you . The 2 billion I will give you where it's coming from . We intend to close and we have already closed some of them , but we are intending to close and all .

Speaker #3: I think we have signed and we are in the process , and it's a matter of closure . The divestment in Nigeria , Norway , the satellite fields , some renewable assets in the US , renewable assets which are will be in Greece .

Speaker #3: And as well we have another project where we will . But I cannot yet disclose to another $300 million which will be announced soon .

Patrick Pouyanné: I have another $300 million which will be announced soon. It's a $2 billion. This does not include, to be precise, SPDC JV divestment, not only because it was approved, but because we, in fact, were not able to close. There were some conditions precedent on our side. We consider that it was not reasonable to close with the, I would say, the supposed buyer. We have not announced. We are discussing today. We have advanced discussion with two additional, two new buyers, which are I think the serious ones. We will not be able, to be clear, to answer your question, to close it before this quarter. It's for next year. By the way, it's good because it's part of the plan for next year.

Speaker #3: So it's a $2 billion this that does not include , to be precise , SPDC . That's GV divestment not only because what was approved , but because we in fact , we were not able to close .

Speaker #3: There were some conditions , precedent on our side , and we consider that it was not reasonable to close with , I would say , the the supposed buyer .

Speaker #3: So we have relaunched , we are discussing today , we have advanced discussions with two , two additional two new buyers , which are , I think , serious ones .

Speaker #3: And so but we will not be able to be clear to answer your question , to close it before this quarter . So it's for next year .

Speaker #3: By the way . It's good because it's part of the plan for next year . So from this perspective , you know what we have observed is that divestments of E&P assets generally takes time .

Patrick Pouyanné: From this perspective, you know, what we have observed is that divestments of E&P assets generally take time. It takes more time even if we have demonstrated with our divestments in Argentina that we were able to sign and to close in the same quarter. Sometimes it's going quicker. The plan is very clear. We will, and we have some interested buyers and serious buyers on it. We are working on this one. There are others, like I mentioned to you, other ideas for this year and next year that I mentioned in New York and which we work as well. On the European competitiveness letter, the answers you probably follow that some tweets or LinkedIn, the European leaders are not really, I mean, are listening to our request.

Speaker #3: It takes more time . Even if we have demonstrated with our divestments in Argentina , but we were able to sign and to close in the same quarter .

Speaker #3: So sometimes it's going quicker . But the plan is clear . We will and we have some interested buyers and serious buyers on it .

Speaker #3: We are working on this one . There are others , like I mentioned to you , other ideas for this year and next year that I mentioned in in New York , on which we work as well on the European competition later , the answer is you probably follow that some tweets or LinkedIn , the European leaders are not really I mean , are listening to our requests .

Speaker #3: They have been I would say we had some calls with some discussions with some European commissioners who took the letter seriously from a 40 CEOs to say , look , we understood they think we are maybe asking them too much , but I think it's sort of wake up call from the 40 CEOs .

Patrick Pouyanné: There have been, I would say, we had some calls. We had some discussions with some European commissioners who took the letter seriously from 40 CEOs to say, Look, so they understood. They think we are maybe asking them too much, but I think it's a sort of wake-up call from these 40 CEOs. We, myself and the CM&CEO, we are the spokesperson. Be clear, we are just reflecting what people expressed during our meetings between French and German CEOs. I've seen that on some topics which are, I would say, more giving some more polemics, there have been some calls, as well, not only from European CEOs, but from US energy secretary and Qatar energy minister to call to revisit some of this legislation, which seems to be an act against competitiveness.

Speaker #3: We myself and the CEO . We are focused person . Let's be clear , we were just reflecting what people expressed during our meetings between French and German CEOs .

Speaker #3: I've seen that on some topics , which are , I would say , more giving some more polemics . There have been some calls , not only from the European CEOs , but from a US energy secretary and Qatar Energy minister , to call , to revisit , to revisit some of these legislation , which seems to be , in fact , against competitiveness and again , for some of them , putting at stake the security of supply of Europe .

Patrick Pouyanné: Again, for some of them, putting at stake the security of supply of Europe. I think this is something which is serious. And we are European CEOs, and we of course wants to continue to contribute to Europe development and growth. To do it, I think it's also our job to speak up when we consider that conditions are changing, as it might be difficult for us to contribute to European prosperity. It's a moving, you know, it's a continuous, I would say fight, but let's contribute to it.

Speaker #3: So I think this is something which is serious and we are European CEOs and we of course , wants to continue to contribute to Europe development and growth .

Speaker #3: But to do it , I think it's also our job to speak up when we consider that conditions are changing . And it might be difficult for us to contribute to European prosperity .

Speaker #3: So it's a moving you know , it's a continuous , I would say fight , but let's contribute to it .

Speaker #9: Thank you very much .

Martijn Rats: Thank you very much.

Speaker #2: The next question is from Martin . Rats , Morgan Stanley , please go ahead .

Operator: The next question is from Martijn Rats, Morgan Stanley. Please go ahead.

Speaker #10: Yeah . Hi . Hello . I've got two , if I may . First of all , what I thought has been sort of really surprising this year is the strength of new LNG , fids already a year , year and a half ago , many of us were writing reports about the surplus in the LNG market in the second half of the decade .

Martijn Rats: Yeah. Hi. Hello. I've got two, if I may. First of all, what I thought has been so really surprising this year is the strength of new LNG FIDs. Already a year and a half ago, many of us were writing reports about the surplus in the LNG market in the second half of the decade. A year up to 2025 has been a near record year of new LNG capacity to be commissioned, and Total still has a few projects it needs to decide on. I was wondering if you perhaps could share with us your thoughts on, you know, despite the outlook, the number of new FIDs being as strong as they are, and also how it impacts your own decisions in terms of future LNG FIDs.

Speaker #10: And yet 2025 has been a near record year of new antique to be commissioned . And to still has a few projects it needs to decide on .

Speaker #10: I was wondering if you perhaps could share with us your thoughts on , you know , despite the outlook , the number of new FIDs being as strong as they are , also how it impacts your own decisions in terms of future LNG , aphids .

Speaker #10: And then the second one I wanted to ask is about the shares and the equivalents between the pair of shares and , and of US shares and so consolidating this into one single class of shares , I was wondering if this could impact the execution of your buyback program in the sense that I was wondering if this is in place from December the 8th onwards , as I now understand it , if some of the buyback program could be executed in sort of New York listed shares and of course , the context behind the question is then also if that could then be a way to avoid some of the proposals that have creatively been floated .

Martijn Rats: The second one I wanted to ask is about the shares and the equivalence between sort of the Paris shares and sort of US shares, consolidating this into one single class of shares. I was wondering if this could impact the execution of your buyback program. In the sense that I was wondering if this is in place from 8 December onwards, as I now understand it, if some of the buyback program could be executed in sort of New York-listed shares. Of course, the context behind the question is then also, like, if that could then be a way to avoid some of the proposals that have creatively been floated, as I think you put it, in French parliament over the last couple of days.

Speaker #10: As I think you put it in French Parliament over the last couple of days .

Speaker #3: Okay. The second question on ADR: no, it does not impact at all the execution of the buyback program. I remind you that the idea of conversion is about around 910% of our shares.

Patrick Pouyanné: Okay. The second question on ADR. No, it has not impacted at all the execution of the buyback program. I remind you that the ADR conversion is about around 9, 10% of our shares. Obviously, the buyback program will be executed on the Paris stock market, to be clear. Not on the New York listed, because it will be strange for us to buy back from New York, where we want, on the contrary, to give more life to the New York market. I prefer more activity and finding more. We will buy back shares in New York when we will see we'll have much more active shares on this side of the Atlantic, I would say. The first point, and honestly, no, it will not, by the way, it will not avoid in any way tax proposals.

Speaker #3: So obviously the buyback program will be executed on the Paris stock market . To be clear . And so not on the New York listed , because it would be strange for us to buy back from New York where we weren't on the contrary , to give more light to this New York market .

Speaker #3: So I prefer a more activity and finding more . We will buy back shares in New York when we will see we'll have much more active shares on this side of the Atlantic .

Speaker #3: I would say the first point , and honestly , it will not , by the way , it will not avoid in any way tax proposals .

Speaker #3: And again , the tax proposals are funny proposals . Again , there are some principles , you know , when the president learned to try to impose , by the way , he tried to impose a 3% tax , extra tax on dividend , which was cancelled by the European Union and by the French Constitutional Court .

Patrick Pouyanné: Again, the tax proposals are funny proposals. Again, there are some principles. You know, when the president learned to try to impose, by the way, he tried to impose a 3% tax, extra tax on dividends, which was canceled by the European Union and by the French Constitutional Council. All of us have the coupon money they took during three, four years. Again, there are some principles. You know, we are in a rule of law continent and a rule of law country, and this is the reality. You must make a split between the political debates, which are quite vigorous, I would say, and even creative, and the reality of the rule of law. We know that there is some limits.

Speaker #3: And all of us have the money they took during 3 or 4 years . So again , there are some principles . You know , we are in a rule of law continent and the rule of law country , and this is the reality .

Speaker #3: So you must make a split between the political debates , which are quite vigorous , I would say , and immensely creative . And the reality of the rule of law .

Speaker #3: And we know that there is some limits . And when I see the figures , and I will tell you what I'm thinking , the higher it is , the better it is , because then I'm sure it will not go through the system .

Patrick Pouyanné: When I see the figures, and I will tell you what I'm thinking, the higher it is, the better it is, because then I'm sure it will not go through the system. I mean, I'm. It's the right reality. There is, you can, in the constitutional French Constitution, you cannot deprive people unreasonably to their means of their profits and their reserves. Buybacks are not at all a profit, you know. Buyback is just a matter of distribution. By the way, of investment in the company, we invest in the company. I mean, I'm ready again. I think it's a topic on which I'm ready to continue to explain to Parliament members what are buybacks.

Speaker #3: So , I mean , I'm it's that's the reality . And there is you can in the confessional conference , you cannot deprive people unreasonably to , to to their of their profits and the results and buybacks are not at all a profit .

Speaker #3: You know , buybacks , it's just a matter of distribution . And by the way , of investment in the company , we invest in the company .

Speaker #3: So I mean I'm ready again I think it's a topic on which I'm ready to continue to explain to Parliament members what our buybacks .

Speaker #3: But I think we'll again , don't don't overreact to this type of , of of news . And I'm afraid we'll have other news during the next 30 days coming from the Parliament at the end of the day , I trust the the government .

Patrick Pouyanné: I think, we'll again, don't overreact to this type of, I would say, of news. You, I'm afraid we'll have all the news during the next 30 days coming from the parliament. At the end of the day, I trust the government.

Martijn Rats: And on-

Patrick Pouyanné: Now, first question, FIDs. Sorry, FIDs.

Martijn Rats: Yeah.

Patrick Pouyanné: Okay. I mean, I'm not sure. I mean, there were a lot of announcements. I'm not sure about how many FIDs exactly, because between the announcements and you have a flow of news of projects being revived because they get the permitting or they get the approval for non-FTA countries export from the US administration. You have a news flow coming. FID, I know train four and five in next decade. Yes, I know them. I know that one or two competitors are serious and are progressing. As I said in New York, all these projects, they need to find the financing. To find the financing, and again, an acceptable, a good financing, you know, a good financing, not an expensive one. Otherwise, you destroy the value.

Speaker #3: Okay . I mean , I'm not sure . I mean , there was a lot of announcements . I'm not sure , but how many FIDs exactly ?

Speaker #3: Because between announcements and you have a flow of news of projects being revised because they get the permitting or get the approvals for non-fda countries export from the US administration .

Speaker #3: So you have a news flow coming , then . I know train four and five in UK . Yes , I know them .

Speaker #3: I know that one or 1 or 2 companies are serious and are progressing because , as I said in New York , all these projects , they need to find the financing to find the financing .

Speaker #3: And again , unacceptable . A good financing , you know , a good financing , not an expensive one . Otherwise you destroy the the value on on , on 24 , we managed to put in place a project financing an a of least for around 6 or 6.5% , which was good .

Patrick Pouyanné: On train four, we managed to put in place a project financing at Rio Grande next four, around 6.5%, which was good. Good project financing, which adds a leverage on it. Other projects don't have the same good favors, I would say, than Rio Grande and Rio Grande LNG. Of course, I agree that we need to take that into consideration. You know, with some policy, a clear view. We decided to transfer most of our exposure on the JKM, I would say, LNG spot market to the Brent formulas, and we have been active. I think we are very right to do it. I'm more bullish on the oil price, as I explained, but on this one by the end of the decade.

Speaker #3: Good project financing which has the leverage on it . Other projects are don't have the same good fathers . And I would say when when Rio Grande and Rio Grande LNG .

Speaker #3: So then of course , I agree that we need to take that into consideration . You know , have a strong policy , a clear view .

Speaker #3: We decided to transfer most of our exposure on the GQM, I would say the LNG spot market, to the brands' formulas, and we have been active.

Speaker #3: I think we were very right to do it . I'm more bullish on the oil price , as I explained that on this one , by the end of the decade , so of course then we need to to assess and to take into account that we postpone .

Patrick Pouyanné: Of course, then we need to, we have to assess and to take into account that we postponed Cameron train 4 because the CapEx were too high. It's not, it's not the time to run again on Cameron train 4. The other decision we have, in fact, in our portfolio is Papua New Guinea. You know that we are working on the CapEx to lower the CapEx. It's clear that low range of CapEx is of utmost importance in a market which could be, from this perspective, weaker when we launch the project. That's a topic on which we will have to work. We have demonstrated already that we know have to be disciplined in that market, giving priority to, I would say, first and second quartile projects in our portfolio.

Speaker #3: Cayman 24 , because the CapEx were too high . It's not it's not the time to run again . On Cameron 24 . And the other decision we have , in fact , in our portfolio is Papua New Guinea .

Speaker #3: You know , that we are working on the CapEx to lower the CapEx . And it's clear that lowering the CapEx is of utmost importance in the market , which could be from this perspective , weaker when we launch the project .

Speaker #3: So that's a topic on which we will have to to work . And we have demonstrated already that we now have to be disciplined in that market , giving priority to , I would say , first and second quartile projects in our portfolio .

Patrick Pouyanné: That's an element of which will have to be taken in consideration.

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