TotalEnergies SE (TTE) on Q4 2023 Results - Earnings Call Transcript
Renaud Lions: Good morning. Welcome to TotalEnergies 2023 Results and 2024 Objectives Presentation. We are today in London from the Tate Modern Art Museum. Thanks for coming today and I hope that you will enjoy the view on the city and sample. You can also follow us live on our website, totalenergies.com. We will start today with a safety sequence with Bernard Pinatel, who is our President Refining & Chemicals and then we will have the presentation from Jean-Pierre and Patrick for around 1 hour. And then we’ll move to the Q&A session, we should be finished around 11:30, 11:45. [Operator Instructions] But without further delay, I invite Bernard to come on stage to launch the meeting with the safety sequence. Bernard? Bernard Pinatel: Thank you, Renaud. Good morning. Last year, I had to deploy two fatalities. As you know, in these two tragic events remind us that our first duty, of course, is to make sure that everyone returns home safe everyday. One fatality occurred in France in a retail station, where a contractor is either passed away when performing some acceleration work. The safety moment I’ve chosen this morning is about the second fatality, the one which occurred in the Silane refinery in the Netherlands, of course, not to describe – just to describe what happened, but most importantly, to share with you what we learned from this tragic event to improve our operations. On February 3, a contractor passed away while he was performing a catalyst and loading operation inside the reactor. His name was Torsten. He was 50 years old. Changing a catalyst is a very sensitive operation as the catalyst is flammable in the presence of oxygen of air. So you must first inert the reactor with nitrogen before the intervention. The catalyst and loading operation is performed, as you see on the slide, by a team of 3 people led by a supervisor. First, there is a diver who is the one entering into the reactor, fully equipped, of course, including with a lifeline to be pulled out in case of emergency. The second one is the second diver who is ready to dive in case of emergency and there is also a controller who monitors the level of nitrogen of air and keeps constant contact by radio and by video. And before entering into the reactor, of course, there is a video inspection to make sure that the situation is safe. At 11:15 on that day, the alarm was given by the personnel and we learned that the diver was trapped by the collapse of some catalysts. Of course, the risk team reinforced by additional members fully equipped tried in turn to pull him out of the reactor, which you may guess from the slide is 30-meter high. When the body went out, the team found that the diver passed away. One thing is clear. We couldn’t keep operating this way with a human entry into an inert atmosphere, even if it is the industry standard practice. So, immediately to free actions, of course, we immediately stopped worldwide, all similar operations in the company. Secondly, with our contractors, HSE specialists, technical experts, we reviewed alternative operating modes to avoid any entry, human entry inside reactors for that kind of operation. And eventually, we identified and selected an alternative operating mode where you change the catalyst by water flooding. What does that mean? It means that you fill the reactor with water and then you emptied together with a catalyst. Of course, this is more costly, because you cannot recover the catalyst to recycle it. And you have to dispose of the waste water, but you will understand this is not really what is at stake. From February 2023, all replacements were performed without any injury. We carried out 21 replacement using water in 2023 and we will have another 14 on the first year of 2024. We also keep working on further improvements in terms of vessel modification, because you will understand that this vessel has now to support the additional weight of water. And of course, we are looking at the utilization of robots. And naturally, we have shared these new operating modes with our peers. So, let me now switch to – after the safety moment to the overall company safety performance. At TotalEnergy, we keep repeating this message. Safety is more than a priority. It’s a value. It’s a core value. Of course, safety is a matter of culture. It’s a matter of leadership. It’s also a matter of permanent improvement. And to track it, we measure several leading indicators that you see on the slide in terms of occupational safety and in terms of prevention of technological risks. So on the left hand side, in terms of occupational safety, you see that we track the total recordable injury rate and that this rate at 0.63 has been reduced over the last 5 years consistently and that represents a reduction of close to 30%. Having an injury rate well below 1 is not a given, believe me, notably, when you see the industry trend since 2020. So we have been able to consolidate our position as a frontrunner on this indicator in our industry. How did we do it? Some key initiatives, I would like to highlight one which is our ability to engage our contractors with our teams to promote shared safety values. We have done it notably through what we call a program of joint safety tools between TotalEnergies management and contractor partners. These two are coming of course in addition to the daily visits we do with our local team on the field. In 2023, we recorded 10,000 of such joint safety tools across the company. Regarding the prevention of major accident and accident pollution on the right hand side, we are also progressing. Over the last 5 years, we have reduced the number of primary losses of contentment you see on the side by 50%. And here again, we have been focusing on two main areas. Of course, first, this is the management of the technical integrity through our maintenance inspection program but also through the implementation of digital tools to anticipate and prevent potential equipment failures. The second area of focus has been the implementation of what we call the safe operating principle, the SOPs where we constantly train our operators on the basic rules to comply with when they perform very standard operations. So of course, to conclude, I just would like to say that we all know that safety is a daily button, but that we are all committed to do our best to protect our people, the environment and our assets. And now, I hand over to Jean-Pierre. Jean-Pierre Sbraire: Thank you, Bernard. So good morning, everyone. This year is a special year for TotalEnergies because TotalEnergies is celebrating in 2024 its 100 years birthday. So the company was founded so 100 years ago in Iraq at that time, the name was [indiscernible]. And since that time, over time, the company has diversified, has adapted itself to deal with the environment, to deal with the society, to deal with the market. And it’s, I think, with the same pioneer spirit that we use at the time in Iraq in oil exploration that we will build the energy system of the future. Indeed, over the last couple of years, we have engaged in balanced energy transition strategy, as you know, incurred on two pillars. So oil and gas on one side and mainly LNG, as you know and on the other side, integrated power. On the oil and side business, TotalEnergies plans to responsibly grow its oil and gas production by 2% to 3% per year, predominantly from LNG, thanks to its rich low-cost, low-emission portfolio. In the LNG business, we will leverage our top three global LNG integrated portfolio with leading position in Regas in Europe, in U.S. exports to develop a top-tier LNG pipeline. And Patrick will come back on that later. In Integrated Power business, the company is building a world class cost competitive portfolio, combining renewable, so solar, offshore winds with flexible assets, CCGT and storage to deliver clean firm power to our customers and as you know, with the objective to be positive net cash flow by 2028 with ROCE at 12%. So let’s move now to the figures. So this consistent two-pillar strategy has delivered, I think, strong results in 2023. In a robust environment, but softer price environment compared to the environment we benefited in 2022. We deliver, as you see here, a net – adjusted net income TotalEnergies share above $23 billion and an IFRS net income above $21 billion. In terms of profitability, we had ROCE, return on capital employed at 19% in 2023 and a return on equity, 20%. So that means that once again, TotalEnergies in 2023 was the most profitable major. In terms of cash flow in 2023, we managed to deliver cash flow at $36 million with a strong contribution of all the different business segments. So E&P contributed to more than $18 million, $18.5 billion, integrated Power, 7.3 – integrated energy, sorry, 7.3, integrated power, above $2 billion, $2.2 billion, I will come back on that later, and downstream at $8.2 billion. On top of that, we benefited last year from a strong working cap release, so cash in coming from our working cap around $5 billion, but to be very transparent with you, some of this capital – working cap variation came includes $2 billion of exceptional fiscal debt variation that will disappear in 2024. So, how this cash has been used? So, this $36 billion plus this $5 billion of working cap has been used. So, $16.8 billion has been devoted to capital investment. I will comment later on this figure. $16.5 billion has been contributed to our shareholder return with cash flow distribution, so payouts above 40%. Indeed, payouts increased from 37% in 2022 to 46% in 2023 and it consisted in 7.1% increase in the ordinary dividend that we paid in 2023 plus $9 billion of buyback. Out of this $9 billion, I remind you that $1.5 billion are directly linked to the Canadian disposal assets. And the remaining parts of the cash flow we generated last year contributed continue to deleverage the company. We now net debt at $6 billion and leading to gearing end of last year at 5%. So now, the scorecard for 2023, I think it’s clear that we deliver on our objectives. So for upstream production, the production increased, excluding Novatek by 2%, to 2.48 million barrels per oil equivalent, with a strong contribution in terms of LNG production that grew by 9%, in line with the objective we had on that topic. Refining has a slightly better than expected utilization rates at more than 80%. So we guide at 80%. And so the final figure was 81%. In terms of renewable growth installed capacity, so this capacity grew by almost 6 gigawatts between 22 and 23 at more than 22 gigawatts at the end of the year, leading and contributing to produce more electricity. So, it’s an increase compared to last year by more than 80% at 19 terawatt hour broadly in line with the objective we had. So now on the emission side front, we reduced scope 1 and 2 from operated facilities to 34.6 million ton last year with two main drivers. So first, we continue to be successful in our efforts in oil and gas businesses to reduce gas flaring. I’ll give you the example, that in Nigeria, for example, we completely stop gas flaring at the end of 2023 and we are successful in developing energy efficiency projects. On top of that, in 2023, 2023 was a more normal year in terms of CCGT utilization rates in 2022 for obvious reasons. We had a very strong decision rate for CCGT until 2023. It’s back to normal. And this contributes, of course, to lower the Scope 1 and 2 ‘22 versus ‘23. Methane from operated facilities were reduced by 47% compared to 2022, surpassing our reduction targets. And another very important key factor, which translates into figure our transition strategy is the lifecycle carbon intensity with a reduction compared to 2015 by 13%, with a target we posted at 12%, so more energy, less emission, but also growing cash flow. We exceeded our CFFO guidance by more than – by about $1 billion. The guidance restated using the same price deck as for 2023 was at $35 billion and so the final figure, as I already mentioned, is at $36 billion. In terms of investments, we invested $16.8 billion last year within the guidance and I will come back on that later. And CFFO payouts already commented, above 40% at 46%. CapEx. So we remain disciplined in our CapEx, in our investments with a total of $16.8 billion in ‘23. We were very active in ‘23 on the M&A side. We have a very active portfolio management allowing to continue to enhance -- to upgrade our portfolio. Because in this figure, $16.8 billion, of course, you had – it’s a net between organic CapEx, around $18 billion plus acquisition, so $6.4 billion of acquisition and $7.7 billion of divestments. So this figure, this $6.4 billion acquisition. So on the oil and gas side we have our entry for a 20% interest in SARB and Umm Lulu fields in Abu Dhabi. We have, on the LNG side, our effective entry in a furnace in Qatar and Rio Grande Project in Texas [indiscernible] for LNG. On the integrated power side, the acquisition of the remaining 70% stake in Total Eren as well a 34% stake in a joint venture with Casa dos Ventos renewable developer in Brazil. And as you know, the main divestments are our exit or disposal of our Canadian assets with sales to Suncor and the sales to Conoco and the sale of our retail network in Germany to Alimentation Couche-Tard. So very strong portfolio management last year with strong figures. In 2023, in line with our balanced energy transition strategy, I remind you previously, we invested more or less the same amount of money in low carbon molecules, so mainly integrated power compared to what we did in oil. So, it’s the red part of the pie compared to the green part of the pie. Another way we can look at it is that we invested as much in integrated and low carbon molecules as we did in new projects in oil or in gas new projects. For integrated power, the figure was $5 billion in ‘23. Progressing, in particular, in implementing our strategy in the regulated markets, particularly in the U.S. and in Europe. So, now moving to the highlights of ‘23. On our two pillars, all segments has big achievements and a strong performance last year, in line with our strategy and objectives. In upstream and gas, our production reached 2.48 million barrels of oil equivalents per day, benefiting from a startup in January of the Block 10 in Oman, Absheron in Azerbaijan in July as well as already mentioned, our entry in SARB and Umm Lulu in Abu Dhabi and our effective entry in the GGIP project in Iraq. The company completed the divestment of its Canadian oil assets in line with the strategy to focus on low breakeven assets. For downstream, we generated $8 billion of cash flow last year. And so we kept – we were able this result is – or this figure is a result of the fact that we were able to capture high refining margins that averaged $69 per ton last year. In 2023, we awarded EPC contracts for the Amiral project, $11 billion contract. So it’s our petrochemical integrated complex in Saudi Arabia with Saudi Aramco that will come on stream in 2027. The company also announced the sale of some European retail network to Alimentation Couche-Tard. And so we completed the German portion before the closure and the remaining parts. So in Netherlands, in Belgium and in Luxembourg, it was completed early January 2024. So we pursued our growing strategy in LNG, especially in the U.S., where we, once again, were the largest LNG exporter last year with more than 10 million tons of capacity and increased our future position to more than 15 million tons per year through our entry into the Rio Grande LNG project and its FID in July. We also reinforced our leading position in Europe ReGas with the startup of two additional FSRUs, so one in Germany, one in France. In Integrated Power business segments, we pursue our profitable growth strategy with an additional 6 gigawatts of renewable capacity. And we are able to generate more than $2 billion of CFFO, $2.2 billion compared to one – something like one last year. That means that we are able to more than double the CFFO generated by this activity over 2023. In 2023 as well, we accelerated the development of our integrated business model in 2 key deregulated markets. the U.S. on one side, with the announcement of an acquisition of 3 CCGTs for 1.5 gigawatt capacity in Texas and in Germany on the other side, announcing the acquisition of 2 German companies, one the top-tier renewable energy aggregator and a leading battery storage developer. So we have built our upstream portfolio through the years with low-cost and sustainable way as illustrated, I think, by these 2 charts. So starting from the left, we’ll go back to 2018. We are consistently reporting the lowest upstream production costs among all the majors, which is, I think, a structural advantage and call us to be resilient even in a low price environment. Our upstream production cost averaged $5.5 per barrel in 2023. It was $5.1 per barrel during – in the fourth quarter, benefiting from the divestments of the high-cost Canadian assets. And that’s why we targeted for this year, production cost at $5 up above. So our portfolio is a low-cost portfolio, but it’s also built to last and so in this illustration of the second graph on the slide. We have, I think, demonstrated the same consistency with our reserve that we had with production costs as shown in that chart. We continue to replace our reserves, maintaining a strong and steady proved reserve life index of around €12 over the last 5 years. And this positions us as the second among the majors. And in 2023, we achieved a strong reserve replacement ratio, well in excess of our production, so 141% and to be approved probable reserve life index at €18. So now moving to the integrated LNG and integrated power segment. That’s the 2 growth segments in our portfolio. That together contributed to almost $10 billion of cash flow in 2023. So we provide you some metrics comparing 2023 figures with 2021. For obvious reason, 2022 was an exceptional year in relation with the crisis between Ukraine and Russia, the war between Ukraine and Russia. And so that’s main rationale behind the fact that we made this comparison ‘21 and ‘23. So in ‘23, integrated LNG generated $6.2 million of net operating income, $7.3 million of CFFO. With all the metrics, in fact, is growing compared to 2021, thanks to the growth to our portfolio, so 44 million ton sales in 2023 and benefiting for higher LNG price environment. All in all, the integration – the integrated LNG profitability improved at 18% in 2023. So for integrated power, adjusted net operating income was $1.9 billion last year and CFFO, slightly above $2.2 billion. So that means that the gap between the NOE and CFFO is directly linked to the fact that during the fourth quarter, benefited from some dividends paid by some of our equity affiliates and mainly a fair way. So that means that the cash flow almost tripled between 2021 and 2023. And you see the production it was 21 terawatt in 2021, 33 in 2023 with power generation from renewable nearly tripling at 7 in 2023, 19 in 2023. OHA was at 10% in 2023, in line with our objectives that was set last year. So the last slide is a benchmark of the TotalEnergies performance compared to our peers using three main metrics which are proved reserves life index, TSA and sustainability rating. So thanks, I think, to the consistency of our strategy, the strength of our delivery, we are competitively positioned versus our peers. So once again, TotalEnergies, you see here on the slide, was the most profitable super major with OHA at 19% in 2023. On the reserve side, our proved reserves life index was 12 years, as I already mentioned, in 2023, which puts us #2 among the majors. This is, I think, really a testimony to our continued success in exploration, result development and active M&A and selective M&A. On the different note, TotalEnergies at once again the best-in-class static rating among the major demonstration that it’s possible to be the most profitable major on one side and to be a leader in the energy transition on the other side. And lastly, our 5-year total shareholder return has averaged about 13% per year, ranking on par with our U.S. peers and outperforming clearly our U.K. peers by a wide margin. Our ability to set and execute a consistent strategy, sustain a rich portfolio of opportunities, maintain the dividend through the cycle like during the COVID crisis in 2020 when other cut it. And more recently, significantly increasing shareholder distribution have all contributed to our strong TSA. So in summary, to terminate on this section, 2023 was a strong year for TotalEnergies. Another big step in terms of shareholder distribution and balanced strategy. And on this positive note, I think I will leave the floor to Patrick. Patrick Pouyanné: Good morning, everybody, for this event. I just – as always, I’d like to see that slide because I think I should insist on the fact that we demonstrate. And I think it’s because we are the most profitable, but we have the right to implement the energy transition strategy that we have decided. But it’s visible to remain at the top of profitability and to transition as well and including to invest of further our investments in electricity. And also, by the way, and I think it’s important to keep a sustainable portfolio of oil and gas projects like we want to do. So it’s an end strategy. It’s oil and gas and low carbon energy, in particular, electricity. So just this time, I will not repeat the strategy, but in fact, it’s true that the best way to execute, to speak about stage to execute it. So ’23 I think Jean-Pierre show you how we have executed it and positively and ‘24 will maintain that strategy, and we’ll have no big news. Sometimes, I think TotalEnergies is a little bothering you, but it’s better to be consistent and to – for continued success. So – and it’s true that we have another way to demonstrate that – and I mentioned that 1.5 years ago, [indiscernible] and we have reinforced the message. In fact, we have a company which delivering much higher cash flows with the same brand than in the previous decade. You can see on this chart that the dot points of the last 5 years are quite well aligned by the way, but the $1 billion per barrel is much higher in terms of acuity. It’s more accretive than it was in the past. And I think that’s – the result of all the repositioning of the portfolio, the oil and gas portfolio, what we call high-grading the portfolio, that’s a reality. And we can see that, in fact, in the results as – and I think it’s one of the new TotalEnergies. TotalEnergies was perceived as a defensive shares, I would say, which was, in fact, amortizing the low price of hydrocarbons, but now it’s TotalEnergies is also benefiting from high oil prices. And that’s why we can have a more aggressive distribution policy to our shareholders. At the same time, the result is, of course, because we have – this high grading of the portfolio. It’s a breakeven of the portfolio. It’s – there, again, it’s under ‘25. It was ‘22 and ‘23, but it’s one of the clear strong characteristics of our portfolio and the strategy. And all that has translated in something which is very new for us. It’s a very low gearing, 5% gearing, so net debt of only $6 billion. And that offer, of course, a lot of capacity to engage in our growth strategy, 5 – more 5 – we want to grow our energy production by more than 5%, 2 to 3 metro carbons and more on the electric side. It’s also offer us a capacity that’s the next cycle to be able to maintain the strategy for cycles and this is what I think shareholders should expect from a company like TotalEnergies. Just a few words about the market we’ll face in ‘24. ‘23 was strong in terms of oil market plus to an increase of more than 2 million barrels of oil per day. Part of it was a recovery of the previously, the COVID recovery, in particular, in jet fuel and aviation and also in China because in ‘22, in fact, China was still under the impact of the COVID, they exited from COVID policies long later than other countries. And in fact, so 2 million was quite high. The IA is announcing plus 1.2% for ‘24. We share that view, which is people will comment is lower, but in fact, it’s normal. I would say it’s back to normal. When you look to the increase of the oil demand from 2000 to 2023, the average is 1.2% per year. 1.2% per year, by the way, it is the average growth of the population of the planet. So there is direct link because population and oil demand. So it’s back to normality. So some people will comment because China is lower [indiscernible]. In fact, it’s back to normality. There is nothing surprising. And in fact – and so we don’t see still, even if some people want to – want to see a deterioration of your old growth. No, in fact, the reality is that we are back to directing the population growth. And that’s one of the key challenge for the energy transition. On the supply side, that’s true that we have some non-OPEC countries, particularly in the Americas, it’s the U.S., it’s Brazil. Guyana, which are bringing some new oil. The OPEC is managing that new supply and demand. I would say we have done very well in ‘23, in fact, more or less stabilizing the price around $80 per barrel. Today, probably the market is supported by the geopolitical tensions in the Middle East. That’s true. There is a more bearish thinking. But OPEC is still there, and I think the move of Saudi Arabia, but they are sealing there. Sealing a 12 million barrels per day is contributing to stabilizing this market as well. On the LNG side, I would say, of course, we’ve seen with high prices, a lower growth, but still 6% per year as an average from 15% to 23%. I’m convinced we will see a good year in ‘24, again, coming back, in particular, we see China. China grew has grown is imposed by 11% in ‘23 compared to ‘22. Not yet at 71 million tons. They are not yet at the level where we are there in ‘21. We are at 81. So there is still room to grow. We see today the Chinese buyer is quite aggressive. You’ve seen them signing a number of long-term contracts. They still have to have a mandate to continue to sign. Some of them, we have ourselves some discussion with some of these players to engage. So they are willing to diversify. By the way, there are source of LNG. And I would not be surprised to see, in particular, when GKM is around $10 per million BTU like it is today. It’s a good driver and I will not be surprised to see China coming back to 80 million tons like they were in ‘21, in ‘24. At the same time, in the meantime’s, Europe has grown a lot from 65 to 113, 114, 22, 113, imports of LNG because we had to replace the Russian gas so that has been a big shock in the market, which is being absorbed. ‘24, so we don’t – we expect a better demand. In fact, the tension will remain because the LNG capacity increase is limited. Not much new capacities coming on stream. We identified something like 8 million tons part of it being arctic too, which will have a limited market, I would say. So in fact, you have attention in the market. And if any of this plant as a problem like we had report 2 years ago, again, the tension will be come back in the market. So there is not a message on LNG. Prices are lower, good for mark – for demand, in particular, in Asia and China. Limited additional supply ‘24. And in fact, I think these metrics will be repeated for ‘25 is the same. It’s only by mid-’26, ‘27, but really we’ll see more supply coming on stream. So that’s for the environment, which is globally positive for TotalEnergy. The key targets, you’ve seen the scorecard for ‘23. So what are the key targets for ‘24 in this summer slide summarize it. Upstream production, 2.4, 2.5, plus 2%, excluding Canada. We come back on that. Production costs, it was mentioned, we will consolidate our advantage $5 per barrel. LNG sales above 40 million tons. It’s 30% equity, 40% long-term supplies and 50% spot. So spot of good value of a variation. We will have a good utilization rate in refining because we have lower program of turnarounds. So we are target 85%. The renewable cost installed capacity will continue to grow. We are under 6 gigawatts per year since last year, and we intend to execute. I remind you that the key meeting we have 35 in mind in ‘25. So we will need to accelerate to 7 gigawatts. But we are on the right pace, I would say, that we wanted to reach. And more importantly to us because it will impact, of course, the results. It’s electricity net production. I will come back on it more than 45 terawatt hour compared to 33 in ‘23. The emissions we want them to continue to go down. So that’s the 38.8 seems to be a little high, but I remind you that when we acquire gas power plant in Texas, it will add some CO2. So it’s a choice. The methane, it’s a strong fight leading the – we are one of the leading company in this site. Objective is 80%, about 2030 reduction compared to 2020. The 50% were supposed to be achieved in ‘25. We are at minus 47%. So we’ll see if we have the ambition to reach it 50%. It’s not linear because in fact, it’s project by project. So you could – so for E&P, it’s not a linear, but 50% seems to – is the ambition to reach it 1 year in advance. And then the last indicator for me is the most important one. It’s what we call the life cycle carbon intensity of our sales. In fact, there should be sales on the paper because, in fact, it’s a way to – its strategy, it translates in our sales to customers. It’s recovering Scope 1 plus 2 plus 3. And we have an objective to decarbonize, I would say, to have low carbon energies in – to sell energies with a lower carbon content fundamentally, it’s 25% by 2030. We are each year progressing. So this year, it was minus 13%. Next year, minus 14%, more or less 1% per year. We will – it’s linked directly linked to the – of course, the more we will sell electrons, the better it is. Project cash flow, I will come back $34 billion in $80 Brent, $10 per [indiscernible]. It’s very – it’s $50 per ton and not $60 per ton, $34 billion. Net investments of 17 million, 18 billion will come back on it, third in integrated power and low carbon molecules and the commitment we take too to our shareholders more in September, more than 40% of cash flow payout. So that’s the objective. So coming on the CapEx. On the CapEx side, now we have a rich portfolio of projects, either on hydrocarbons or LNG and also on the integrated power side. So we want to grow our energy production by 5% between ‘23 and ‘28 and 2% to 3% for hydrocarbon. So there is no – we need to invest to put this to all these nice projects into production. So we had a guidance of $16 billion, $18 billion for the 5 years. This ‘24, we announced 17 billion to 18 billion. All segments benefiting from 1 billion increase, I would say, which is – so we keep the discipline and a third in the integrated power and low carbon molecule, one-third in new projects, oil and gas projects, 1 in LNG projects and one-third in maintenance. So the guidance is the same than what we announced in September. So what do we intend to do? On the oil side, we continue the ideas to continue to deliver, to work to deliver all this growth and midterm growth. So we are there on this slide a summary of our different actions and which are, of course, Nicola teams, I would say, focus on delivery. On the major projects, we have progressing, in particular, in Brazil, somewhere in our portfolio. Brazil is replacing Russia. In fact, when you look to in E&P, we had Narrow 2, which came on stream the last day of the year. It’s a Petrobras way to celebrate the new year. For me, the first year of ‘24 – first day of ‘24 is the last day of ‘22, first one well. So we expect more production. But we are working on [indiscernible] where Petrobras is planning to start up by end ‘24. Then we have [indiscernible], which was also on his way, which will be second half ‘25. And then in the U.S., we are working with [ Sharon] Ballymore. So that’s a non-operated asset. For the operated ones, we have, of course, very important one is Ugana in company share. It’s almost 130,000 barrels per day. So it’s a big impact. So we progress and with the target is end ‘25. So we should be by end ‘24, around 60% of progress. It has already been launched. And [indiscernible], of course, our teams are on the ground. I visited them for, say, 3, 2 times, twice in the last quarter in – where we have operations have been handed over to us, and we are executing the first phase of the project to grow the production from 60,000 barrel per day to 110,000 barrels per day. So that’s the first phase. Then we will go to 200 and more than 200. At the same time, as you know, we work on the gas firing and on the solar part. So that’s, I would say, the major projects. We follow that carefully. We have in ‘24 as well quite a big, I would say, agenda on sanctioning new projects. In Brazil, again, we are embarked. We have been successful in both TOR. So we are embarked to sanction Sepia 2 and Atapu 2 on which Petrobras, I think, is making a joint – sort of joint tender. We are lucky to be on both sides. We have also Cameia, which is a name which has been selected for the development on Block 20. It’s an 80,000 barrel per day development on Block 20. We are operator. We should be able to sanction that by middle of the year. We have the last, I would say, the last discussions. And on Block 58, at Suriname this one is not yet a name, maybe it’s [indiscernible] or I don’t know if there are 2 discoveries. We have [indiscernible], maybe will give us a name. We are – it’s not yet there. But this one, of course, is important because it’s a 200,000 barrel per day project. We have 50% of it. So it’s an important project. The objective being to sanction it before year-end 2024, and we are working on it. All these, I remind you, the criteria to sanction projects. We assess a profitability at $50 per barrel, $1 per ton and each project should respect 2 conditions: one, cost or I would say, economics is less than $20 per barrel or less than $30 of breakeven after tax. And the other one is emissions less than our portfolio average. And the portfolio average is lower. It was 20-kilogram per barrel into 2020. The portfolio average emission intensity is 18. So the new criteria is less than 18 kilograms per barrel of CO2. And so we progress. It’s a virtuous criteria and this will be the case of the 4 projects, which are just mentioned. An innovation that we announced yesterday or today, I don’t know, but we need to continue to work on the CapEx costs. Of course, we face an environment which have more inflation. In particular, in the drilling rigs for deepwater, we’ve seen the market moving from $200,000 per day to more than $400,000 barrel per day. So we decided to take an innovative action, which is to acquire part of a rig because to control the cost, in fact, for us, with Vantage, 75%. It’s a way to hedge in fact, our costs on drilling the company will benefit from, but I can tell you the costs are not $400,000 barrel per day. They are much lower than that. I know it’s some people – but we know we are using a fleet of 8 to 10 deepwater rigs per year. So to try to manage one. Maybe it’s only the first one of the fleet, but it’s a way to hedge the costs because we cannot just accept that because of less competition. The costs are increasing because the market is not really there. It’s more less competition. So we have decided to move. It was frustrating during 15 years. I have realized one of my personal objectives not to let these guys taking plenty of one of us without participating on getting it. So, yes, it’s a way to control the cost. In ‘24, another comment I want to make – these are the new productions coming on stream, Mero 2, Tyra in Denmark, the redevelopment in Tyra that we generated for Maersk. It’s planned for end of March, beginning of April. Anchor in the U.S. with Chevron. It’s important comment, and we just announced a new production coming in the portfolio. Of case, we need to close it by end of the first half, probably, gas in Malaysia. We are acquiring this year on this field with quite a good potential to deploy beyond the asset. There are a lot of other opportunities in Malaysia. It’s also a way for us to consolidate our partnership with Petrobras working there. All these additions including the ones which have been put into production in ‘23. When you look at them, which is Absheron, which is SARB and Umm Lulu, Iraq as well. When you look to the cash flow per barrel, they are all accretive compared to our portfolio. And so – and it’s important. They have an average, I would say, of cash flow per barrel around $30 per barrel compared to our portfolio, which is around $22. So it’s again back to my comment, but we continue to high-grade the portfolio, and that’s very pragmatic. It’s true for acquisition and divestment, what we acquired in SARB Umm Lulu and Sapura, but compared to what we diverse, by the way, in Canada. Make accretive part of the barrels that we produce. It’s as well for the organic part of the portfolio. So that’s an important message. In particular, at a time where, in fact, the declining part of our portfolio, for example, in the Northern U.K. have a little much lower CFFO per barrel because of the taxation. So we continue to high-grade the portfolio for this new project. Exploration. It has been for TotalEnergies a successful story for the last year. We did not mention there Nigeria and [indiscernible] or Cyprus, by the way, where we are confirming with Eni. We have 50% of these discoveries with Eni in Cyprus. We have the gas in Cyprus for sure. So we will find a way to have an efficient development process. And I think being partnered with Eni will obviously have some capacities neighboring country is a nice way too. And I love the fact that Eni is keen to go to shorten the time to market. We are fully supportive on that, in particular, and this part of the military NMC. Here, I interested, I just mentioned Sapakara South and Krabdagu. So I will not come back on [indiscernible]. On Namibia, we continue to drill. So Mangetti, I can tell you is we find again some hydrocarbons in Mangetti. We find against the hydrocarbon level of Venus or the extension to the north. As it was commented on what the mind of my peers and we share the data with our neighboring peer, we – in the different appraisal wells and the test, there is clearly not an heterogeneous. It’s not homogeneous field. There are a lot of hydrocarbons, but we need to – there are some sweet spots in terms of productivity, permeability. There are some areas which have less good characteristics. I repeat that on our side, we see a first development clearly, in our hand, if no question of optimizing, we will continue to dwell for how many debates in the company because everybody is excited. We have another exploration potential well on the south of Venus, called [indiscernible], and we can also continue to appraise what has been discovered. So clearly, in Namibia is on the top of our spending in exploration and appraisal we will spend around 30% of our budget exploration upgrades in Namibia again in ‘24 because we have the continue to see what is the best way to develop that. LNG, the other part, so several message on the Slide 4 ‘24. First, the projects we have quite a big portfolio of four projects fundamentally in the U.S. in Qatar. In the U.S., in fact, Energia Costa Azul is not in the U.S. and Mexico, but it’s a gas coming from the U.S. that we valorize. This project is progressing well. We should be able to produce by mid ‘25, I think that’s more or less a target we have with Sempra. For us, it’s important, I remind you because we have access to – we have only 16% of the projects, but we have access to almost 55% of the production, 1.7 million tons, very well located to go to Asia. We have North Field East as well in Qatar and North Field South, two large projects. It’s 2 million tons for the first one, 1.5 million tons for the second one, for TotalEnergies. They are on his way? No. Things have been sanctioned and contractors are mobilized. And then the last one is Rio Grande. We, I think, selected a good project. South Texas. We have a good contractor Bechtel, very committed. We have all the authorizations. So no problem of temporary ban. And so we are moving on. Of course, it’s quite a large project. So our target is 27, but it’s on its way and even a little in advance compared to planning curve. Two of our projects important, which will – on which we work is Mozambique. So Mozambique, we have, I think, the security report, the human rights report. Now, we are remobilizing the contractors. And I think we are not far from having everything set with them. The last part is [indiscernible] a large project financing, which was, I would say, put on hold when the events came in ‘21. And so we need now to – we are reactivating with all these financial institutions around the world, this project financing and when all that will be done, we will start again the project. On Papua LNG, we are working as well on all the France marketing. It’s a project which is well perceived in Asia but also the financing because we need to put the financing in place and the EPC contracts we work with contractors. So that’s on LNG, six projects I would say, in parallel. A comment on the results that I want just to clarify, I know we had the question mark. 2023 somewhere, we benefited from the fact that we are hedging 1 year in advance part of our portfolio, except Russia. So this was represent in the $7.3 billion, I think, that were mentioned by Jean-Pierre, $500 million. So this $500 million were exceptional. We could not hedge at the same level for ‘24 and ‘23. Having said that, and what we target is $7 billion, I would say, of cash flow from LNG because we have a better – we have a growth, as we mentioned, 9% in the growth production in ‘23. So we will benefit of it. So we should be around $7 billion. So we expect a stable, I would say, cash flow coming from LNG. We took an environment for this figure, which is a little lower than in ‘23 and TTF, $10 instead of $13, just to – as an average. Integrated power for ‘24, we commented already the increase of capacity plus 6 gigawatts, the electricity generation more than 45, 25 coming from renewables. And for the cash flow, we continue – the idea is that we should grow to reach the net cash flow positive by 2020. We need to grow by $500 million per year, more or less. So the idea is that our objective is to be able to deliver $2.5 billion to $3 billion out of a portfolio of which will be by end of ‘24 around $125 billion of cash capital employed more is $24 billion, $25 billion. So that’s continued growth and all businesses contributing to this increase. Of course, it’s important to demonstrate the profitability and the 10% ROACE, the ambition is to grow to 12% by ‘28. Just a word about what we are building in Texas, it’s one of the announcements that we’ve done during the last quarter. Texas is a very interesting market because it’s a growing market, growing population in Texas. People in the U.S. are moving to Texas. So – and it’s with quite a lot of imbalances and bottlenecks in the infrastructure, which create a lot of opportunities for renewables but also for flexible generation. And in particular, it’s quite nice for us because it’s – during the summer, but the spark spread in the U.S. is very positive, in Europe in our portfolio, the gas plants are more in the winter instead of summer. And it could reach very high level. So even if the use of these gas plants is maybe only third of the year. So cash – the profit generation can be very high. And we need to have these assets. We’ve done that in good conditions in terms of accessing $600 million for 1.5 gigawatt is a good price. A direct negotiation with a private equity firm, which allow us to have access to these capacities. And it’s important because fundamentally, our customers corporate PPA. What they want to have is not only a green electricity, they want a firm electricity and to deliver a firm, if we don’t have a firm power, if we don’t have enough in our portfolio, some gas plants or flexible assets like batteries. We have also some batteries in Texas. We are already 300 megawatts installed. We continue to grow it. If we don’t have these type of assets, it’s difficult to make trading and to make offers which are competitive. So that’s the whole objective that we are pursuing. And you will see us continuing to be very active in Texas because it’s a good market to develop – to deploy our integrated power strategy. On the downstream for ‘24. We anticipate the market to be a little lower than ‘23. ‘22, ‘23 in refining has been quite a strong market, supported by the ban on Russian crudes, the geopolitical tensions. We see some ease in the markets on refining, coming back to something like $50, $60 per ton, which is still quite high compared to what we experienced in the year 2015, 2020, but probably, I would say, a sort of softer environment in ‘24. It’s also true in petrochemicals, where clearly there is a lower demand in Europe. We see the impact of European economic crisis, the macro crisis and in the U.S. as well. So in Asia, it’s still good. But – so that impacts the margins on polymers. We were, I would say, during the first half or first three quarters of the year quite preserved because of our position now it is an impact of these lower margins. So that’s why we – the $8 billion of cash flow we had in – we performed in ‘23. We think it could be around $7 billion in ‘24 as a guidance. In the Refining & Chemicals and Marketing which cause here in downstream, we cover the three segments. We are also working on the transition, in particular, on the South market will deliver multiplied by two of production in ‘24. It’s in-line with what we – our customers are expecting because the mandates begin to grow in some countries. And we don’t have yet a big conversion of Grandpuits, which will bring 200,000 tons per year, but we are using part of the HVO we have in La Mede in order to convert it in some soft products to meet some expectations. It’s a good business. And again, that’s a transition. Transition is also, of course, in the marketing part on the electric mobility. We have a strategy we explained to you in September to concentrate most of our efforts, I would say, on EV hubs, on scarce prime locations, however, on motorways, and urban locations. We have built by the end of ‘23, 300, 350 hubs. We plan to have more than 600 in ‘24. And this also focusing as well is on HPC because the customers, they don’t like these low charging. It’s maybe good in the Swiss of London or Paris. But honestly, if you want to really meet the real market for us is professional customers or, I would say, long discount customers, they are ready to spend 15 maybe 25 minutes, but more. So HPC, we have deployed already more than 1,000 HPC, and it will be more than 3,000. So rather that’s a number of charging points, for us, the real metric is of many HPCs and hubs, electric hubs do we deploy in Europe. It’s more – I think it makes more sense by just counting the number of charging points because the profitability of each of them will not be the same at the end of the day. And in terms of strategy. So that’s what I could say. So I’m coming back to the share – to our shareholders, which is the most important and the cash flow generation. So we anticipate in this environment at $80 Brent, $10 TTF and 50 European refining margin market. We could answer some questions what we move this market, around $34 billion is in-line with the $36 billion we delivered, you make the math with the sensitivity. You are adding an additional growth of 500 in power and 500 in overall businesses, and you will find 34. So it’s very in-line with our or I would say, our strategic plan and road map. We will invest 17, 18. So we have free cash flow around $17 billion. And the Board in that context has decided to continue to grow the dividend by 7% and those remain as the final dividend will be €79 – €0.79 per share instead of the quarterly interim dividend were €74. And this €0.79 per share will be the next quarterly interim dividend which the Board will support. So that’s for the dividend. And so this is – I will come back on it in 1 minute. And on the buyback, we have announced that we will maintain $2 billion for the next quarter, and that’s $2 billion per quarter where remains, I would say, the base of the Board discussion for the coming quarters and next quarters in this type of environment. And that’s, I think, the next slide, which illustrates this, I would say, steady strategy or steady policy, I would say, as a shareholder distribution. We – the quarterly dividend, which were at 66% during 2019, 2020, no decrease, 2021. We used the balance sheet. You can see it on the chart in the middle, the gearing ratio went up in 2020 because we decided to use our balance sheet, we were in order to maintain this distribution policy. As begun to grow in ‘22, then ‘23, 7%, again, 7% of ‘24. So an increase of 20% in the last 3 years. And that, as you know, we did not decrease this quarterly dividend for more than – I was when I became CEO, it was 30 years or today it’s 40 years. And so it’s one of the age we maintain. And the buyback, we are a little stubborn as well. We increased to 2 since the second quarter ‘22. And so you can continue 22. But we increased it in last quarter because we decided to give back part of the Canadian divestment proceeds to the shareholders as a sort of exceptional. But – so it’s very consistent. By the way, as the number of shares diminish, I would say the buyback per share is growing, in fact, just even if the share is going up. And just one comment about the dividend, I didn’t mention the 7%. We bought back in ‘23, 5.8%, 5.9% of our – I would say, of our shares. So for me, it’s the basis, as I always said, to return to shareholders, you need to at least increase the dividend by what you bought back. So the 6% were for me secured just because we have added 1% because there is a growth – it was a discussion of the Board of 7% because we’ve made 7%, it’s consistent with what we could maintain on the long-term. And so that’s the last slide because as I said, we know we have a gap in the multiple with our U.S. peers, but again, in terms of TSR, we are in the ballpark. Our ambition is to be able – is to continue to convince the market that we – so multiple of TotalEnergies should be higher. And that’s why we continue to buy back despite the fact that the share at €60 per share is more or less not far from the historic eye, but we strongly believe the strategy will deliver more value and we demonstrate that we can do it while transitioning. And again, there is no contradiction. And so we hope to see that shareholder return to be translated in the company valuation in the coming months. And the last slide is to celebrate the one of the years, pioneers for one of the years, that is logo, as a slogan. We have decided the motto, we have decided to select. I will not comment all the photo only one, the first one in the top – in the left top corner is the first well in Iraq. By the way, in Ratawi, I visited Ratawi and we discovered Ratawi, I discovered that Ratawi backed [indiscernible]. It was discovered in 1938 by TotalEnergies teams and the wealth of discovery exist. The number one, the take a photo on it. Not this one in Kaminho because it’s a little unsafe [indiscernible] today. So my adviser, my security guys don’t go there, but in Rataw way, right? So we are back to our routes. The photo in the left bottom corner is Arzu in Algeria, part of our history. You have Tyra in Denmark. It’s more recent history. You have Lapa in Brazil, more recent history as well. On the photo, the other ones and the location is in France for two of them. And you have also these small [indiscernible] with a symbol of the technology that we of the technology-driven company and engineers that we use for measuring methane around all our assets today. So thank you for your attention, and now we can answer to your question. Who wants to start? Irene? Q - Irene Himona: Thank you very much. Irene Himona, Societe Generale. So Patrick, you’ve built the integrated power portfolio through M&A. You’ve been very active on that. Your targets are for gross capacity. Would you contemplate something a little bit more radical or different like bringing in a partner, selling down part of that portfolio like some of your peers have done? And then secondly, on the buyback, the $2 billion quarterly buyback, your balance sheet is very ungeared now. If the environment were to deteriorate, and we’ve had tremendous volatility in recent years, how far would you lean into the balance sheet to sustain that buyback? Thank you. Patrick Pouyanné: Okay. First question. We do it, in fact. We don’t have one partner, because it’s not some – but each asset, the policy is clear. We develop the assets when we are operator, 100%, but at COD, we divest 50% of them because I prefer, it’s a question of management of risk, I prefer to have 2x 50%, 1x 100%. It’s also a question of profitability. What is difficult is to find one partner for all the geographies. You have some people who are financial partners – because we don’t want to have too much people bothering our teams. We like to have financial partners. They love it. But it’s not the same market when you are divesting 50% of an asset in Texas, when you go to Greece. So it’s a different portfolio. Even if reach a point where, as we increase the capacity by 6 gigawatts, we have more gigawatts to farm down. So we will need to find a way to industrialize, I would say, the way we farm down. So [indiscernible] but it’s not an easy task. If you go asset by asset, so for example, in ‘24 I think we have 2 gigawatts, something like that, in new assets, or 1.2 gigawatts in Texas. So we will make a package and find – and by the way, it’s better to farm down, because then you have larger institutions which are interested. When it’s one asset, sometimes it’s more, they don’t want to spend too much time. So we try to do it like that. We have some assets as well. Greece is a different country, but we negative from [indiscernible] or in South Iberia. So we need to be active on that and to find a way to industrialize it. It’s not one partner. But again, that’s very good. I prefer to have some partners as well in order to challenge us tomorrow in the way we – it’s the same, I would say, philosophy that we have. We’ve done one divestment we announced in – on Seagreen in offshore wind in Scotland where PTTEP wanted to have experience in offshore wind. They like TotalEnergies. You’ve seen, I can tell you, if you make the rate of return of the M&A activity, acquiring this 25% from SCC in 2020 and selling in 2023 to PTTEP, is more than 15% return. So you can make this type of activity. It’s good because we don’t want to be just – we want to share the risk between different assets, and we will continue that philosophy. Jean-Pierre Sbraire: It’s a very good question. I think my message was positive. I think we have a good band. The slide is for purpose, a slide that I show you about the dividend, the gearing. And it’s true that at 5% gearing, as we’ve done in 2020, the situation was much more critical in 2020 than today, at 5% gearing. And when I mentioned that we announced $2 billion for the next quarter, but we – $2 billion is the basis for the coming quarters. I think it’s also because I have in mind that we can use the balance sheet and unless the price going down again to something like less than $50, we can resist over [indiscernible]. But for me, so as a discussion of the Board, so we find in the press release there is a positive message. But we don’t want to commit about $20 billion of buyback because we have no visibility. But fundamentally, the balance sheet gives us quite a strong support to this policy and to be – the word, important word, is steady policy, and either on the dividend 7%, 7%, or on the buyback. And so you could hear 222 for several quarters. Renaud Lions: We can go this table as well. Gentlemen here. Oswald Clint: Thank you very much, everyone. Oswald Clint, Bernstein. I wanted to ask on LNG, and I wanted to ask about appetite into your portfolio from new demand from Biden’s policy recently from the Red Sea disruption. I think you answered that already by saying China is having some discussions with you, etcetera. So perhaps I’ll change it to, are you, I mean, really leveraging – and I know Stephane is behind me, but leveraging the LNG trading and optimization piece, I mean, a couple of your peers this last quarter here in Europe, even in Texas, are now delivering gas and LNG trading profits on top. It doesn’t look like you captured a lot. It looks like the others are a bit more aggressive, potentially a lot more capital financing is being allocated to trading, and it’s coming through. So perhaps your business is more tightly controlled. Just to get your thoughts on, are you happy with that? Is there more you could do around the LNG optimization pace, please? Patrick Pouyanné: I’m very happy with what we do. And by the way, maybe when you look to our peers this quarter is better, the previous quarter was not so good. So we are more consistent in the trading part quarterly after quarterly. We know our policy, and Stephane can elaborate, but we have no – we are, honestly, I think, are doing a lot with that. It’s [indiscernible] we are managing 40 million tons. So of course, a part of it and the number of spot deals which have been done 16 million tons. So again, it’s quite active and our traders are doing a lot around it. But I will deliver the message that they can do better when I see their bonus. I think they have done well. You can ask to Jean-Pierre what he thinks about that. No. I think, honestly, we are not more. We are very active on that. It’s completely in the business model of LNG trading. Again, we benefited from the fact – we have this policy to hedge most of the portfolio 1 year in advance. It’s true. But because we have quite an open position, and I think it’s – so we benefited from that in ‘23. Next year $7 billion. Again, I think one message of the slide, by the way, when you look to the improvement of what we were delivering in ‘21 to ‘23, it’s quite a big improvement. And it’s coming fundamentally, in particular, the European position. In Europe, we have access, we control 16% of regas capacities. We have added these two FSRUs. So it help us to trade around that. So maybe we make less noise when we have good results, but we don’t have any bad results in the quarter. So I’m fine. No, we are fine. Oswald Clint: Thank you. And maybe my second question is just on Iraq, 100 years. When you spoke about your new Iraqi project there, did you say it’s also a $30 per barrel cash margin? Patrick Pouyanné: It’s much more than that. Oswald Clint: Okay. And really, the bigger question was that my favorite chart is the one on cash flow relative to the oil price. Is there anything as we look out for the next 5 years that would be decreasing the slope of that with production sharing contracts, slopes in LNG contracts? Patrick Pouyanné: It’s a good question. We have done it in the last 2 years, we can project it. I think it’s a good – Olivier, which is behind the door there, he is expert of making this type of charts. He is super good economist and engineer. No. But I think the point, but we can demonstrate that on the portfolio. Fundamentally, our new portfolio is much more accretive to [indiscernible] because we look to projects and we select the projects to find this, I would say, to improve not only – we were perceived, as I said, as a resilient company, we want to have also the upside. And Iraq is one of them, by the way, where we have quite a good upside. But I take the point and we can illustrate that maybe September next strategy. We had that slide. It was too complex last time. So we need to prepare it in a better way. But this one, I think, that we had, which has been imagined by our colleagues, it’s a good illustration about this change of slope and which means higher upside to capture from the brand. Renaud Lions: We can go Michele, please. Michele Vigna: Thank you. Congratulations on the strong results and being almost net debt-free. I wanted to ask two questions. The first one is more industry-wide. We are getting a lot of very conflicting messages on EV uptake across the world. On one side, it seems to be accelerating in China, but then it’s decelerating in Europe and in the U.S. as some of the more generous incentives roll off. What are you seeing on the ground? And does that in any way change your strategy in terms of EV charging? And then secondly, I wanted to ask you on LNG. You clearly hedge 12 months forward your spot LNG exposure. But I was wondering, is there a way to quantify the sensitivity to spot LNG prices beyond that 12-month of hedging? Thank you. Patrick Pouyanné: What is important in our portfolio is the difference between TTF and GKM, I think you can elaborate on that, Stephane, the second question, maybe you can answer too. On the first one, that’s one of the unknown. But we know, in fact, our strategy is centered on Europe, the EU, which has a clear plan, 2035. And in EU, it’s fundamentally the five, the core of the countries, France, Germany, Netherlands, the UK, Spain. In the U.S., I agree, but when you go to the U.S., you don’t see a big move. And when you observe in the streets and don’t see a huge move. So more – we are more careful. So we are more on the EV strategy is more Europe, where there is a clear regulation plan, where we think that it will happen, maybe not as quick as before, but as the government seems to be, even if they have less money, but they will be obliged. At the end, maybe [indiscernible] of the car manufacturers, maybe there will be plenty of Chinese EV cars in the streets in Europe, the trend today, but it’s not my issue to me. So for us, EV equals Europe where we have a clear, I would say, [indiscernible] regulations. But I think, honestly, this transition is not only a question of offer. If you don’t have an incentive on the demand and a clear, I would say, policymakers, policy, low chance that people will accept. It’s a revolution, it’s a kind of revolution. You ask people to spend more money to get a car to have the same function, but I see car. Why should they spend more money? Tell me. So we have to lower – they have to lower the cost of the cars and somewhere to be supported, so without policy. So you’re right. China is good, but China is using their own market in order to – but it’s, again, more for car manufacturing industry, is a challenge to bring all these cars to deploy their manufacturing capacities on the planet, in fact, which is what is happening, in fact, in particular, in Europe. So for us, does it change? No, fundamentally. But we will not deploy EV in Africa, where we have retail today, it’s Africa, I will continue to continue to develop our, I would say, traditional business in Africa. In Europe, you see that change, even if we are happy with the position in France. Again, as I commented, we sold our retail station in Germany and the Netherlands to Couche-Tard because the financial proposal was for us quite a good one. So we had to – in a way to change. In terms of CapEx, it’s a matter today of $150 million, $200 million per year. So it’s not a huge commitment compared to what we spent. So Europe, yes. The rest, I will observe, just to go in your way. And what I’m observing is again, let’s see, depending on the policies. And particularly in the U.S., I have few doubts. Okay, another one? Stephane should answer. Sorry. Stephane, please, answer. Stephane Michel: Yes. On your question, so our LNG portfolio is globally a mix of long-term supply coming from our assets for third party, and of long-term sales, mostly in Asia. So if we look at that, we purchased fixed costs and [indiscernible] and we sell mostly Brent and TTF, GKM. And as we mentioned already in the past, globally, our portfolio is around 70%, 80% more long-term Brent and the rest is TTF GKM. By the way, as we doTTE Ratings Summary
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TotalEnergies SE Announces $2 Billion Buyback Amid Strong Q1 Earnings
TotalEnergies SE's Strategic Financial Moves and Market Performance
TotalEnergies SE, trading under the symbols NYSE:TOT and EPA:TTE, has recently made headlines with its announcement of a $2 billion buyback program, a strategic move that underscores the company's robust financial health and confidence in its future prospects. This decision comes on the back of a period where sustained oil prices have significantly bolstered the company's profits, demonstrating its ability to navigate through the volatile energy market. Despite facing a challenging environment, TotalEnergies' adjusted net income for the first quarter of the year impressively reached $5.1 billion. Although this represents a 22% decrease from the previous year, it still exceeded market expectations, which were pegged at $5 billion. This performance not only highlights the company's resilience amidst fluctuating oil prices but also its adeptness in maintaining a strong financial standing.
The announcement made on March 26th regarding TotalEnergies' financial results for the first quarter of 2024 has been a cause for celebration within the big oil firm. The company's positive earnings report is a testament to its operational success and financial health during the early part of 2024. According to Invezz, this turnaround in financial performance is a significant indicator of TotalEnergies' ongoing recovery and growth, positioning it well within the competitive landscape of the energy sector.
Reflecting on the company's stock performance, TotalEnergies SE (TTE) experienced a notable increase in its stock price by 1.261%, closing at $74.68. This uptick of $0.93 from its previous position not only signifies investor confidence in the company but also marks a new high for the year, showcasing a remarkable recovery from its previous low of $54.94. The stock's performance throughout the trading day, with fluctuations between a low of $74.38 and a peak of $74.97, further emphasizes the market's positive reception to TotalEnergies' financial strategies and operational achievements.
Moreover, the company's market capitalization, standing at approximately $173.73 billion, coupled with a trading volume of 753,315 shares, underscores the substantial scale and investor interest in TotalEnergies. This financial metric is crucial as it reflects the total market value of the company's outstanding shares, offering insights into its size, investor perception, and potential market impact. The significant market capitalization not only highlights TotalEnergies' dominance in the energy sector but also its resilience and adaptability in maintaining growth and profitability amidst market challenges.
In summary, TotalEnergies SE's strategic financial maneuvers, including the $2 billion buyback program and its impressive first-quarter earnings, have solidified its position in the energy market. Despite the challenges posed by fluctuating oil prices, the company has demonstrated remarkable financial health and operational success. The positive movement in its stock price and substantial market capitalization further attest to TotalEnergies' strong standing and investor confidence, marking a period of financial stability and growth for the big oil firm.
