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TotalEnergies SE (TTE)

Participants
Patrick Pouyanné Chief Executive Officer
Jean-Pierre Sbraire Chief Financial Officer
Christyan Malek JPMorgan
Irene Himona Societe Generale
Lydia Rainforth Barclays
Martijn Rats Morgan Stanley
Lucas Herrmann BNP
Biraj Borkhataria RBC
Bertrand Hodee Kepler Cheuvreux
Christopher Kuplent Bank of America
Kim Fustier HSBC
Amy Wong Credit Suisse
Paul Cheng Scotiabank
Henri Patricot UBS
Call transcript
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Patrick Pouyanné

Hello, everyone. Patrick Pouyanné here. I am happy to join you today for this call to comment our results together with Jean-Pierre.

Our TotalEnergies are taking action to take the most out of the very favorable environment for energy companies. I will also comment, of course, the actions we are taking to execute and deliver on our strategy in such an environment. the then review to will will Q&A. the Jean-Pierre results we and go And

as using the obviously Jean-Pierre the environment leverage price flows strengthening course, cash first benefit will for of opportunity transformation cycle. So environment commodity is cash is show It the our and refining fundamentally this the our that time we that you of indeed And is commodity in this significantly record LNG our quarter. the and to of for our TotalEnergies ability benefiting are of the our very our price industry observing of to is prices commodity an are margin. I same accelerate increasing European or and strong company of years a gas, price but XX and time price we flow the the the environment fully recognize quarter such balance to margins – company very and at performing in am oil, shareholders. and the high sheet supportive, in are price we where segments the all well

the supply and capacity global will the prices. coming implies high spare and system On medium-term additional year this for struggle the develop LNG over to oil side, production both support for

because slide make a have in high. recession They quite to the extended price the increasing gasoline indeed the the France continues sanctions pump this, year. not fuel reopen, to for quarter. to program been have this falling of entire additional This margins strong rather current its in to into energy freight end inflation. July, should sky prices and benefit And on prefer still conflict economies in a sharply this cyclical. demand during to directly as Ultimately, customers at the demand but the quarter ourselves this impact environment. forget remain taxation side, the potential is reduction obviously share refining global through On for had for network but are context, for the TotalEnergies sharply, the The a we immediately than second our target pushed is customers. and of Russia-Ukraine in our and We prices

we do So to long-term. the cycle the at not expect of top remain for the

deliver the profitably for of to and before been approach we have balanced We a energy cycles and are these company on strategy grow type to best transportation. taking for our execute

is positions opportunities have relationships – new these developed we conditions good because access and we as in the key opportunities this period the partnership expansion new player to invest announced we Our and portfolio: And which April, a XX% join with prepare venture cash in in is you company transformation investments with the Adani in renewable major the new through in potentially we of for board as flow stake in our Clearway, acquisition of I second fleet future. explained managed in as what will to the to first accelerating said, green energy; have and in areas. three know to opportunities growth the the is you very These priority to the the have in U.S. this India Qatar priority the through quarter, entry In of our fifth giving LNG; strong into production. doing. are North new hydrogen for countercyclical strong opportunities, a Giant largest have generation,

position are Germany, in largest maximizing Europe. acting level also already more are for provider moving floating our as terminals to example, opportunistically possibly where France a to We by, regas LNG at LNG the tactical we regas and

the market European Block to Two barrel Angola, on notably, short oil wells accelerating example, capacity, another the sanctioning development Begonia on each our to are be Sea, several for from with just way, Block projects, also the but cycle increase of XX/XX, in North we projects, for and projects. also example Angola. gas X infill Angola of oil the We on deliveries product showcase By will XX Club Block of multi-energy XX,XXX different as and on many XX/XX. strategy are side,

plant to gas LNG Angola LNG and and of in to Maboqueiro the first Europe XX more The fields non-associated and first with on partnership Sonangol. and the fit deliver projects Quiluma plant in solar Asia megawatts order

CapEx April, the billion, acceleration a anticipate $XX XXXX of $XX of we depending and billion that $XX year the transition, rather of the in And acquisition close timing billion our I next As ‘XX-’XX. like $XX for remind will it first $XX sales. on now billion, to billion you CapEx March, asset gave guidance the to I probably, half than $XX were $X result these a billion. billion in the be say, the our last of all we announced in range would we that of

invest this our addition new projects A LNG any call. Russia. to our So next the to word And during more ambition as LNG new is growth. the a portfolio, to future Russia. the I segment despite decision billion we LNG the $XX in Qatar question deal growth range, The a last to contribute thanks will not in $XX answered in our maintain in – on billion obviously to to any

international Investor value capital Russia our Russia of Novatek. volume employed starting TotalEnergies on about will of future cash without the its plans you exiting actions with negotiated billion the stake taking recorded Fundamentally, potential exit related production with have the quarter represents that in we impairment oil new into of X% As implemented strategic our and some sanctions Day both to trading the account impact represent ‘XX. the its September announced the flow our of $X.X in and in business account. on quarter. fully for And figures. during Kharyaga from recently TotalEnergies and are observed, in we change a second of oilfield March the last principle

of share for shareholders will details barrel production not be the be global X.X you million given day, but to the the the end More of example, return of growth XXXX financial growth. €X.XX per – which through will increase interim at to billion the the X%, quarter, nor fourth of through our XXXX the third global XXXX, performance structural globally of oil share, strategic the dividend For will – priority to cap, are the of buybacks since flow environment shares. $X September per presentation. shareholder December to a The since bought flow, cash underlying will we approved back increasing the the plus our an the of and a return strong Board at amount represent the of board X% market current another share generation. quarter level that supported for is quarter cash reflect which by be third in of second Also, tranche

can are I in by reasonable cut. a deduct never quarter back buyback $X buyback, basis, the first least the third for and of any should reach but $X light price the valuation paying companying frankly, rate share way, basis, same quarter dividends of of second on particularly can relative XXXX On this guidance billion but we the but the the that. billion rate we is You the for in year TotalEnergies and the at quarter from come will doubling on the the

adversaries capacity the act cash a generation an he our will accordingly is demonstrating strong and persist of particular discipline what strategic It to we commodity leave to for we to will by Jean-Pierre marked I return positive leverage to me results. prices. be Jean-Pierre, to exercise just the Yes, environment is let transformation, energy in sheet and may balance elevated very maintain will you. in maximize future. of But strong its performance told positive – the and indicators, allocate initial the terms for course, in happy, floor for yours. I easy and such and to of him just summarize a to flow This all set value view. a with is quite shareholders, Now, remind company our clearly, capital presenting medium-term in are The dynamic environment today. in

Jean-Pierre Sbraire

you, Patrick. Thank

net Adjusted were that which buybacks. billion into So, X% the Earnings the $X.X benefits up up billion, quarter. second billion, reported $X.X XX% takes by more IFRS of $X.X mentioned. were first $X.XX, impairment the quarter share per results for was the of Patrick with net from ‘XX income account than

$XX.X The and well in level year. as results dramatic quarter quarter increase as record increase the the was the first and XX% an second second half the of over same billion, LNG first and quarter last additive the reflect double flow of oil, cash prices margins quarter. Debt from refining gas

plus and of cover TotalEnergies production low flow This terms maintenance quarter. and partially dividends. due production in cash fields free into half, gas Nigeria upstream same strong For leverage per the is XXX,XXX has were higher barrels mainly the the strong year Brazil. by to from ‘XX illustrates the X.X offset full price first producer CapEx entry commodity second $XX.X of by Sepia and year in enough and the Operationally, as and million flow day the to the equivalent in Atapu to million period oil generation. environment billion, was oil X.X decreased again Libya first in the to plant quarter cuts in This a cost cash that doubling last that

second We new high target million business, the second higher XX,XXX X.X for day planned expect the In thanks quarter. third and ramp-ups production quarter in third the stable about rates the to barrels to the We day and the in projects. turnarounds increased was to at the throughput oil to rate level barrels utilization the refinery in per the be same than XX%. from the utilization downstream per second quarter, quarter of quarter be

gigawatts first spot second the in average quarter, the XQ record price to lower in tons due of last quarter compared high selling line was projects, the renewable gigawatts first generation sales first the quarter, company. Excellent Xx gigawatts per sales, the grew quarter segments, in million second a quarter-to-quarter electricity second operation quarter. LNG the second decrease MMBtu quarter. goal X.X $XX cash of quarter, Power quarter. Al XX.X & The more from increased XX.X was net in exceptional spot million X.X Important but the to mainly performance to with to Kharsaah trading phase second the first given the capacity changes in quarter flow reversal at grown the year. gas has sales our in guidance of to pipeline same startup cash to growth $XXX flow a point to the and billion million effect now of solar the more down margin the than the reflecting than generation. to income contribution the gross Adjusted due level to expected to by oil integrity from at was the in formulas. in iGRP, XX gas, the iGRP and of in quarter. of increase in of per $X.X quarter, our Looking of working the including billion quarter and engine capital down MMBtu the is power $X.X price lag in installed that second $X.X is the on was Gross the from and third LNG LNG evolution out renewable in portfolio the by $XX related first power Gas, Qatar. billion billion, end the $X the results from of quarter project the the and XX.X tons in Including the up development operating quarter, gigawatts Renewable were prices

over environment XX gigawatts. the So, return average contributed billion quarter, is of adjusted XX capital of growth we and that which achieve well to are corresponds XXXX income past on net than $X.X of XX% months. more can operating this in very E&P in performing we employed our target confident second the

net higher the in Cash a quarter mainly down was the of generated above of price, price lower Downstream of This billion partially X% flow integrated of quarter, quarter gas sanction liquids model, million. first increased and it level, fully the and flow bit two net represents from the reduced billion result than first than first Russian At of and impressively XX%. ‘XX from record as on refined lower as capture $XXX second billion quarter due lower cash $XX.X the importance the realization in second margins employed by operating operating a the before very products, $X.X of company lower, year. cap income the which the the plus the flow on volumes performance reminder the assets. in and of impact volumes. reflecting the to in imports adjusted twice of quarter strong for quarters more of $X.X performed the slightly context generated the half row, well, of production return which of billion billion product Operating cash result half, in $X.X Russian to is we of adjusted what the high a $XX.X the exceptional offset income was trading production the first an working annualized in more changes capital or first was half

Our in billion. net half $X.X the first investment was

anyone is than financially $XX paying billion debt dividends, can during We And addition recall. in of and gearing June, able we our second shares as billion net cost performing company to announced. quarter are at ever operationally the of bought to mentioned XX%. so back, $X.X already, better end reduce our to is The stronger by billion below the the as Patrick $X

do we for using that ready to fortify balance on time last the to shareholders. Q&A. reality to think accelerate our point, return that the environment we this are are Patrick? for sheet, transformation the not And we and value long I run, While a expect this is the

Patrick Pouyanné

floor is yours. So the

Operator

a Thank question from Malek first Instructions] We JPMorgan. you. from Christyan have [Operator

Christyan Malek

questions. Good taking gentlemen. afternoon, the Thank for

you also risks within as sort my just as mentioned demand Can be feel seeing, line the as sort So good X obviously not to your the it though so of of you you allocation to question assets, second line risk your some sort how as see dynamics? you of Is Could demand sort hard And opposed Patrick, top to clearly could as links Russia people’s the associated have both First CapEx? it I pertains are the sort sort particularly a to target, more but that profile wholesale of advantage, investments, of right we given you premium around great medium-term more what be as the to long-term reached Thank it CapEx deals, with you. particularly pertains inflation. is is XX-month advantage It around provide structural, as soft around mix viewed have question maybe ceiling? an capital then to guide. of. are any done of of being given it minds? about even elaborate is to are exceptionally to on which as some sector also are taking the around it you in take And you forward? level a CapEx and of result view the of demand terms on have absolute clear Because question a sight you – guidance just Could you the anything a countercyclical around because going think it in guide clearly in of which come just oil. the at medium-term, of opportunities the of going around good higher back the there gets and does of is is clear ceiling? it risk recessionary seems a the

Patrick Pouyanné

Good. Thank the you, questions. for two Christyan,

gave $XX on February, CapEx, you $XX billion. to billion, that’s ‘XX-’XX you a Why? of $XX on close speech, at $XX to the in billion billion. renewables Because the I I some make use March, we have to have accelerate in said, First, billion, we the accelerate we told as on told Angola, in also U.S. example, instruction know, given obviously, just of But guidance you beginning the managed I given we go $XX we guidance this year the $XX true. said for $XX I for the year, try billion, I as we Clearway, and but [indiscernible] billion, deal just Begonia. to We think to examples decided to as as that cycles. have the have on mean, in we sales in short opportunities, to several

way, well. opportunity project this an in launch before, industry. do it’s the to it cost by So To increase the

today. from in lot my energy. question we can company It’s So a of also instructions, energy you, also tell we case, a in I a have because we an environment given good benefit spend

energy in the are company. costs So, the increasing

accelerate for program So, programs, which to some team good I energy way costs for asked structurally by CapEx have It’s the efficiency, the in emissions. the is long-term. on the in also good

So, this is source. another

this the billion So $XX $XX very company rather to year environment the next spend I an such am comfortable than to $XX initial billion, billion. to see in

So react this more point. end the am for at will of reasonable I it’s, we you billion, we gave CapEx, but information another and you Having a that, $XX is environment. to at guidance the the I for guidance September, give think, me billion keeping said positive stage capacity in to $XX

we two split, Brazil think true, [indiscernible] the of to Sepia On have oil farm. very the you in happy are I the said, acquired Atapu on sales and

many not basis of by per since day a of beginning $XXX per barrel of we $XX containers barrel and share that received a December May, barrel. XX,XXX on per acquired we While at almost XX,XXX,

we’ll can when it’s because ready are deals clear more oil there course, I tell I price be of to is high, but would am might complex the be of be you but this do if I higher, So other active. expectations one, afraid the am opportunities. – like so

XX% is – Speaking of billion CapEx, $XX XX% you LNG XX%, billion, we still mind. more what have around to less range $XX energies, up it’s think but new this or even around, XX%, let’s say, remaining stage, my valid with around I around oil, I am go at if between and in

no still seen Aviation strong. is one, fuel after the today. yet tricky the with because I of on reopening jet demand even we decrease is a side, quite back XXXX, have in On the not is we so is one coming see demand and for it’s improvement. mean COVID, level at the room of demand real question side, there

last seen is China the demand in in that was weak, China and the have quarter China reopening. so but We was closed

the time, markets, rates again. positive some is for I there mark so demand Interest rising At increasing same And so raising. are Inflation this today. room see financial for oil. strong not room, is question about

So, the U.S. to am mean a what risk is see I I’m in we a not this could including the reading, recession. macroeconomic but expert, I have

we a the know and remain in countries So, this the could government big for burden in have are the that price impacts And emerging impact when demand. that high, particular on subsidies demand.

some have have could seen You the – country. we in

Sri it’s countries Lanka, say, think policies which in put order I the budget I is the, small but prices, could gasoline but other burden, a by oil subsidizing country, would prices. to some control

So that say. a be could would negative, I

I had in negative, So remember, am XXXX but impacts the crisis, crisis, on positive some I think see these when on macro positive last huge demand there the the more is trends the risks. all all, was we And the strong. than quite macroeconomic financial that you I in demand

repeat So, And improvement. said. that’s see, don’t as side, I are maximum today. what something. the OPEC the said well for room I countries that, on think supply I much I Having at almost

Libya. have You

have shortage the You overall production. easy is workforces of to best U.S. some so understand. production I but re-crews of the today, are not not increase have quickly But you And Venezuela, difficulties. geopolitical it’s facing where the we so on but and expert, shareholder, increase

Christyan Malek

Thank you.

Operator

Himona, comes from ahead. Irene go The next Please Societe question you. Generale. Thank

Irene Himona

the results. afternoon. strong you. Thank and I questions, Good please congratulations on had two

context inflation And aside UK new profit in for tax the the Total? can you are and Thank exploiting you what the be Sea, you oil strategic expect Firstly, you renewables transition, gas roughly in see to opportunities, the the $XX you. would also are windfall as you to which CapEx starting North of creep about gigawatts? do say accelerate of billion constructing cost secondly, the in then the the new and projects X your you also with where

Patrick Pouyanné

for Thank Irene, questions. two the you,

but seen leading it’s rates. find but I to and we see the in $XX to we some few are industry. better the guidance we postpone it second like cycles, you which the on raise We’ve side, inflation our of going in up, only rig On raw a Africa took I acceptable was market, opportunities, see CapEx the for top short point our and next recently have pipeline project is rates managed increase rig to for the big which cannot deflation. the that we to materials, steel, to some inflation, And no, example. is would billion. where one, access fundamentally It’s we because an tell raw the at have very of not there order wait consider materials the say decision still And to

have the as It’s reason billion of may billion. So raw M&A it’s our why part impact, $XX but the billion, strategy accelerating material are some $XX the of it’s and why is we not activities, you some on $XX opportunistic kind more – said, being which you next have given to CapEx. results, fitting short-cycle

you side, is our cash. all evaluation impact $XXX the taxes. On the today for have of UK you tell expected I price of the than generated I operation cash, much for on with which that is higher the this say way, UK can by European if me, is the million around the of would also gas in But year – we these

that when say were lowering taxation would it’s been the high. say, in they UK, quite always the in So side have the a it’s were low. prices it’s would low, And lowering the tax on I quite ways, would active say, increasing I history, and I when are they when – the both

the So will that’s it flow elements in in we generating there be can that give are absorbed I of the type the UK. that cash you, but

Irene Himona

Thank you very much.

Operator

you. Thank from next question from go Rainforth The ahead. comes Please Barclays. Lydia

Lydia Rainforth

if questions I you afternoon, good could. Thank Two and guys.

I taking things being define little one, thinking able are you’re the Clearway actually and about models low-carbon side, in like a actually I’m money CapEx and or more space, to as to come the of back and spending energy. first the the you bit The risk? can if more business idea So

the cash second about return then we of additional cash I but buybacks additional Patrick, across to back the customer. how and share you be And you the should if know, be the balance on CapEx CapEx? come the confident to between returns this this I one the that idea the shareholders. how – effectively, So that buybacks, flow additional talked early, it share stakeholders, the and

I’m do can So of how more in the you much time over get terms shareholder just Thanks. balance a trying returns. to

Patrick Pouyanné

Okay.

On a the be first, guidance second and profitability question, medium- let’s of CapEx for is, business clear. question of us, The our long-term model.

know we and we So the some from low back, the year say, draw in – come cycle would an XXXX. of I we few it’s XXXX, experience when the that profitability. But we if – overspend, we then have will CapEx, terms difficulties

we in a look sustainable sort of CapEx long-term medium, So the CapEx. to

valuable, we This very short-cycle that vary. we are And price So it’s range XX to and today according to a XX we gave you the again, obviously, of adapt the you we accelerate for high. quite could today according in projects shareholders, see – it – it so I and but our range is the when why gave circumstances.

I think the not so way. arbitrated long-term, that buyback CapEx. point reasonable – the So but to behave against to it’s maintain, would – the so CapEx. And the say, The medium on and that’s level – I is of quite reasonable

is shareholders. The return what question, global another is Let’s be clear. buyback to is a which

flow cash huge that a we generated from first have can operations I when almost Of see in you the have course, think, you half. mean, of $XX billion, think I I –

is half second same. of year The the the

It $XX billion. be see. will would We

billion, the higher $XX much had billion it’s $XX we in when So mind.

to transition is, balance sheet. extra say, how So do to question we this the opportunity strengthen wants the, us and also the I again share to use Board profits. The for accelerate this would

the will be When the that, not we interest a giving that net of more opportunities debt debt changing. macro to explained rate from environment could you possible It’s coming. see as about the already, the by opportunity the the matter if raising, patient. some valuation you be So you think us is end I But year, it’s far see of X%. under – as to

order don’t what model. it’s the business money So we to spend just quickly, act is our to to to the do want strengthen to to capacity in keep continue but

the billion We as per So told for I started to $X you, the billion. $X buyback at for level, quarter. year, we raised

carbon and carbon I what I dividends, Now said are low in the will And for told returns, $X billion this It have today, repeat if today than gas March, on put that you prices, think, the fundamentally, we cash I the back of biogas, in that. the we have at to adding business we math your cover billion This reach you we be make the be the that what I the – already way the – I again, question. flow energy for all you as will when To in to of, electricity year. Europe, $X said the to I around have return. the be and see is these second XX% billion, around a our is you the explained downs. maintained. market again, say, as to will results on not half. part under and quite we the not And least which price. last the the $XX And which could them you of of would you is high. fact, model, renewable to and already billion, sorry, In sort projects sell these is you mind, in something look you the question, $X farm return monitor keep to come after productions I you, all the merchant to order by on mind, renewable low say, cover it’s I of if for generated price according burden is commodity And to profitability look that It’s to I’ve European question, some say, biogas, I XX% global a will first would with can a fields would which that what much higher the observe when would minimum target. the is is profitability price, regulated given the it renewables think at return generation like

this not explain value when you gives only that us – this some it’s to and renewable chain. I renewables, look So electricity and it’s comfort you,

apply farm, for on to spot a to the price we to the £XX, Seagreen of considered need that on way of value because cover and and these the way £XX, dividend. market can these the per decided of better production megawatt electrons, on warrantied whole would around £XX warrantied trading production them You UK the by there on market is, our chain spot not new XX% CFD, the auction offshore difference, a your for you part electricity the part keep of the of we And the do on manage the why the as better was electricity to the price to market, to do. recently contract production the wind more to the which renewable the limit free but price way, keep price, was and for and in And to future. This in whole raising look offshore on and production not a only example, only a again, the not farm, your in XX% a production to new hour. valorize wind assets prices as not

Operator

comes question next from go The you. Thank ahead. Rats Morgan Please Martijn from Stanley.

Martijn Rats

Hi, Yes. I’ve two. thanks questions. got taking for my

to be see the year dividend as to one-off, rate perhaps related one grow wanted by company, macro X% sort trend slightly of it. above-trend that a you’d hike? And shrinking the there is dividend a future and more sufficiently all, asking of that is a you count. growth type this rate to just Would bit bit allow the to more share rather large rate or now going well a what was a forward a starting effectively suited dividend. buyback of it is, other that ask it year. the year-on-year, of than but reason of be case as And a to The course, if trend up the is want of that we to to wondering for for briefly is just X% made should sort answer see X% I less the be the First I ask is I about to still but of

about hoping imports. few will about you to ramp diesel in to Russia the subject import production? being else? hoping in, So barrels to European diesel all European that of It’s what diesel I’m and say it consumption price say do simply from it diesel somewhere XX% expect so. I day European you reason Can tension was comes an from of XXX,XXX from there market, the are Russian available? a estimates, it we at February. are gas In less market, and they I fully Can theory, lot could It asking should or ask all the seems imports words was are that I embargo our wanted fall In with you seaborne of a in words it. could away. a up is nonetheless. suited they that is they that to awful continue they kicks your about European happen And few

Patrick Pouyanné

the questions. two Martijn, for you, Thank

guidance I and opportunity for the next X% next the September, The X% make are as are willing right and It’s that a as very years. to cash for X% at X there well. year, buyback that a the XX, other only hiccup. I me, Because In years. like our Qatar, will year first you, last We a with September the say, anticipate following was meantime, the a per of September flows you one-off, you next that next clear me. year to if X we increase. in would around Russia one the of a potentially X% the by I we remember, of told But a not share growth as not is all for explain one-off we is in follow capital,

We must in be I supported have is room think. said why our the This CFFO of dividend growth, sustainable by portfolio. underlying growth we

and if me. the you back that is effective intent of for that question it only So despite clarify thank to we will really back true fact the for of this return it’s guidance year me, shares, X you dividend can year that. after. your When you X%. in the that it’s to And increase obviously put model, in for is bought represent your Russia, X% capital And X% bought the the our you a shareholder somewhere it’s put

So, point. you’re very good that’s On right. this yes,

that. spread is the continues is sum, reason transit at produce think today go remain not I to second the I happening the on And enough diesel, are margins. roof. European that during fundamentally, system but think interesting that quarter. diesel to it’s And there what the very which European our to I does said we you good a is diesel you and The for when beginning gasoline one sky is high. fundamentally. was gasoline down, to went the

the gas. Before, they like

In not cover In fact, demand. to Europe past, made the gathering. but refining system diesel designed mostly natural we some gas, enough was the to in produce the investments,

high by So government. it’s of That’s the the way, spread diesel the quite and think anticipating true. among you, why one some tell because the I I difficulties. That’s market is can of is concern – the

And signed – for So the order on tons of in sort why of diesel. the XXX,XXX Abu government Dhabi its our would way, the course, an the by – to be intermediate the to ensure be will we agreement side, will state say, to French and of arm the Dhabi Abu trading I looking this the energy are why, last between with week effectivity diesel. of will example, supply company French supply we total

market is has I mind. there in – and the that So think

margin as second spread our spent it’s the at we you you in know, support necessary the quite will but into that of will energy. because, where go view stay refinery, my is refining diesel spread. the And quarter the a down, lot So sky this were future not should in

refining energy per has to something so per And cost $XX grown like and up $XX, from ton. $X of ton the

refineries all less to some have all, on have Otherwise, are utilized, of to And the we an impact cost support. we the continue if utilized. want supply diesel less refineries to utilized XX% will if energy, they rate, So almost you be in if to be need at the market.

a in So position, support of have because diesel for key identified element the Europe. and a I think that there the that’s margins for we refining as something you have –

Martijn Rats

Thank you clear. very

Operator

Lucas from Herrmann is BNP. The next from question

Lucas Herrmann

chart back of in opportunistically. just And much. in The the opportunities certainly billion. the last relatively $X very billion, over to years course Thanks X seen act have to deals that see They $X Patrick, you that the been generally X, we’ve going modest. renewable have been

the run from the can whether been, any indication place Urals to equally, us facility guess paid see you line I market of is So I look second, comments of a given time, the which Leuna, you What’s obviously for benefit you Patrick. idea what that I Urals Any at got but remove given in made sanctions. on? it. benefiting the of you’ve first investors that to obliged in refining give the on pondering remains price – end production, the you think has are something when significantly the to today year? question. back that it’s plan was the from been present presume – at by greater to scale, something that’s yourself be just Urals. the it’s doing given So can And within Russia Thanks, the

Patrick Pouyanné

of so for multiple, large difficult view, renewable me my today don’t on – pay point point it’s too high want acquisitions. at make way first high are Again, I view that for you some there to of to my embark very to too no – assets much some assets. valorized the is question, to know is

done, some negotiated of directly – as partner. companies we having some So TotalEnergies added with because it’s see value which you few have a they deals said, some like were not

bringing are example, also because from value we U.S., large the to have shareholder, our are managed capacity shareholder For we GIP corporate added deal, additional strong PPAs of trading the footprint. can at that is which do in Clearway Clearway we some make a to deal a in assets we value because bringing renewable this the because but point view, get potential we some of scale ourselves most to

should should – we this a we it we can Honestly, So for, in before looking could will the be that. do of could as that large acquisitions decrease as are is we large contemplate of what making field. We you companies before see large not we these think. value that, see so

So clear. very second on one we have Leuna, I’ll Leuna. been clear, be

have stop to was feeding announced XX. one We been Leuna [indiscernible], way, begun the the as already stopped contracts, March by by from has we of which

Leuna Russian crude supplied today, oil. only with not more So

from XXXX sanctions until I and think, X, it’s because a the contract December oil XXXX. mix So of will some crude run December applied Russian be the will

road So we map. obviously, and it’s on clear our be will

Poland. and discussions alternative because will would have and network means be I we Leuna that And Ekofisk through through coming Germany which a I would two to Sea, the from by share, Leuna, today are crude that refineries So North oil route. say, probably RED have fed pipeline there this others for

So the post clear. position, better that’s the and position is

say, first, that benefited this again, of but – business again, say refining segment refining a not during offer. & single – from commensurate The with I a has the of margin, Refining I the would the benefited. that is frankly, had not – our months $XXX the Chemicals year per average small ton would not So business. will fundamentally benefit results few we

to that, never We it’s seen beginning decrease. have but

think the $XX I we more range of and in are today $XXX.

is which benefit. gasoline a sharply There on comments going also spreads, are my again, the down. So

I think they of But done and it the in strong to profit chemical oil XXXX. of quarters the trading. in second very performance, performance was a Jean-Pierre mentioned refining two row, what by would the similar our I say in little a quarter exceptional have an

if So But traders, trading trading. very volatile our true you power and was results. of the market, trading that Last it’s in of type can that $XXX all our the there super consider in gas and of million these this quarter, direction, it’s it good performance because question course, I these – we repeated would volatility. say, are know it the a of a will be benefit in such, of the a don’t of can quarters I dislocations coming of make market. in for

impact again, Leuna does remark it a have on fundamental right, results. your but on not the So

Lucas Herrmann

Thanks, Patrick.

Operator

Borkhataria next question Biraj RBC. from from The is

Biraj Borkhataria

my taking questions. Hi, thanks for

$XX the billion for or the whether confirm is first The is And particularly Qatar. just in that’s budget? on assets Can CapEx question expansion one for then project? disclose LNG major the enter and you structure to Congratulations your payment the first second project. included on the being that Russian And on side. the entry

just around implemented, would So LNG impact there at rubles you. talk for about potentially about recently operations gas gas that thinking was your if Can Gazprom how some the articles that scheme. adding – Thank how Yamal? were – you to you’re

Patrick Pouyanné

I catch Biraj. Sorry, second the didn’t question,

being use. ruble Sorry. as for

Okay, ruble.

Okay.

Sorry.

no First, on was be NFE, bonus. I let’s question cannot was not at third, The but there disclose clear. – all the

say, I a fact, the would do. was CapEx. fiscal deal we bid, a fundamentally bonus In limited to very that in Qatar The had

course, started, been we sanctioned Energy a Qatar NFE by of pass the have project because So will which ago, year think. X I to already which is have have cost pay,

will small pass the to bonus and we costs. all of we course, recover will close payment take – So this share the additional will fundamentally of There And have is place deal. very then but a limited. when

So there antitrust some – are, have we think, because I conditions some to precedent follow-up.

have we if or I so for know don’t of the So ‘XX – I anticipation part think it’s ‘XX.

this to we that we but put think told forecast our have uncertainty have pay my – linked it the pass It’s that I of it’s we of depend So there to and but NFE. said – part we have acquisitions fact is – I will have may you into in the planning. speech. I what sales on the these will for costs

contracts. in way, you tell to it’s It’s it not would By it’s are today. I honestly, ruble, financing. linked the Europe. the the There some project still have question, would case not Second if the

I understand. – behaving We is to be said some some major but mean impact if mean me, will the this the bank and – a as I on apply is which the mean see exactly see a for obviously a But don’t a euro impact account Having way, the we I I buyers globally. the I could legal the same the behave and account – is question not to of just consequences financing, in by understand there, The don’t border, – because the on have that. exactly question legal I frontier, project that, today, account. ruble discussion are account little I pipe match will and will today, euro gas ruble have

So there is no debate at this stage management. but lower with

Biraj Borkhataria

you. thank Okay,

Operator

question next Kepler Hodee Bertrand from comes Cheuvreux. The from

Bertrand Hodee

you. you LNG, to XXXX, Can especially hedges U.S. your spot on be impact QX color further operation, second policies a if a is – outages LNG want question Hello. about of XXXX current the impact would your what what Thank LNG is, marketing Two you X.X the high hedging on your QX And to understand we your expect volumes improvement contribution I you advantage sustained million color Thank in offtake strong place, hedged taking more side? expect you HX for your quantify in takers or the outages. helpful. very Freeport negative In in structure that Any try are that ton having had spot question of a to given of for questions XXXX, from despite can some some project? of the prices if LNG very already those of from give already question. kind in please. you my presold your U.S. LNG short-term delivered that us out LNG and that is So in related wondering LNG you can

Patrick Pouyanné

Okay.

replace because have to ensure we some have cargoes we had obviously, second we somewhere, so one, the customers the missing On to customers. the

We missing if we in So, know cargoes – for cargoes don’t we were next there planned quarter. the the eight two second according. And exactly. quarter

end of to obviously maybe to U.S. to, planning September. light. I green is according the a We Freeport think have think see give it’s I authorities restart by

we in lower has you cost. not not results replace it’s tell that – that the will But will it’s I tell of account So, these QX. it market, already into will are in a not be so again And partially. results somewhere we the our have – to taking spot use you in excuse cargoes course, to it will on QX than

opportunities teams to have Our offset.

of production. a have portfolio, source very We large large a

LNG model. of to So, it’s part, that. way, business our And our the up by manage to teams

so as the you LNG questions by We Obviously, type sourcing an be hedge. know our of because not must don’t about We Yamal, happen. We are Yamal of we policies, type in reason, able will capacity. led other Because hedging we to for hedge teams the don’t are could our example. hiccups, don’t – which and XXX% what for this of we hedging this future. plants, XX your obvious different manage have be events know sourcing way, to

we So, supplies. quite hedging slightly we say, of prudent. more are volume But a would are I LNG our,

I percentage in a And you from which Yes, are of positive. certain policy hedges, can’t the month-after-month portfolio. tell answer the our will is place, on your so XXXX benefit yes, question of put first

question the positive. So, is first

but is second in be the the it The question short-term to negative portfolio. impact, global absorbed has on

Bertrand Hodee

thanks Patrick. Many

Operator

Christopher Kuplent next of The from Bank question America. from is

Christopher Kuplent

afternoon. Thank Good you.

reversed how or high the is wanted going is Hoover how seen give a capital a downstream Just QX how you of And results for quarter. XX%. one the from has contribution you to you in offering minor expect second second to us can may, full in ask not? up. net few ones, in hopefully, detail in whether I to can working and Thank year much of on customers much price the be Any be a quick upstream that you price that you ask, your fantastic? what this your sustainable remained approach the more French be taxation, impact I just if your would whether helps. the to to wanted of a half much you at that just expect rebates, just these on in that working I be the to would indication environment, thoughts have tax number lower And you. if XX% effective effective the inflows is versus terms explicit obviously, or Otherwise, pump. wonder from of later sooner lastly, your are But regarding capital rate earnings environment or great. a below this government-funded bit I In

Jean-Pierre Sbraire

the question Yes. will take I the rate. regarding effective tax

are the to around be second quarter. over precise XX% XX%, We

in gave effective XX% we because it’s the with tax XX%, line rate this guidance for So, for reflects XX%, E&P.

to So, it’s XX% environment. this in close

with more E&P We for the cash for what are relation And more XX%, working group of $X the generate the course, is in gave at my in regarding tax we cap, BTU. what’s the remind in billion course, with But – speech, to group tax. in So, pay me gas reflecting working in from the $XX I more we driver results. higher for balance cap of is of guidance per the debt rate we mentioned coming during environment, already than $X you able what relation And than gave electricity And came and we will the we around a tax tax in businesses. coming main XX%. in yes, quarter. that XX%, will margins rate said. the million pay we it’s billion tax the second cash more around months. have we from can The our I

cash main quarter. the in elements behind billion for two So, $X this second

Patrick Pouyanné

year. per Economy On the French liter million fuel discount, I can to the He We sell Parliament. billion to €XXX what spoke about Minister XX the Minister, refer the Economy mentioned impact.

make you volumes multiplied take a the If so about the guess – discount. you and by

Just before this is taxes.

Christopher Kuplent

Thank Understood. you.

Patrick Pouyanné

Next question.

Operator

Fustier The next question from from HSBC. is Kim

Kim Fustier

Alright. Good afternoon.

me, questions please. Just two for

December, Firstly, you project? is solar, would from in that floating you investments hydrogen secured Total government encourage on Germany? wind, discussions Leuna comments on or of the could German would you to on any that’s you And you proposed year? is then you. sort with there plan Xst make the the off-take the of biomethane LNG that secondly, anything date project at help that or underpin made have final Have offer in any the low-carbon startup German And EU this corporates incremental have Thank agreements the had gas not whether that seen have realistic German to fires how repower otherwise? in long-term Europe

Patrick Pouyanné

of good name just because bring tankers that to the location into next the is following the It’s near the are to gas shuttle in projects, the and remember is of don’t to X X. because then the our tankers the North a harbor. to have say, to connect. take And to I should think accommodate. not identified, the reality is landing connection project proposing LNG point very some We and Stream location, it’s the I to North German I we bring FSRU next LNG FSRUs area. fact, have the Stream to of pipe promoter There On because is the network complexity the landing quite is very The not one. German system which sort is the a they There would location this – to pipeline it’s easy from LNG come feed. could to Germany the of

once promoter, The said we that the have that, think the German this we has bring Having – in project you market, is project. some the markets. get So, the German the say, there, authorization. which gas FSRUs, developing this will with are gas would go you that government promoter, developing in I I European designed German, if in be put that connection in to LNG

But long-term LNG have is problem German So, to find priority we our no, to remaining in customers, some to FSRU the no LNG don’t no, but And contract the there enough terminal feed, prices say vis-à-vis have they LNG. portfolio. customers. with to for beyond we given be the at to question the for a the gas Europe feeding are level obviously, are, will if our in is

no So, market, you can need, put floating would And unit. I contracts long-term a because well. a if beyond, we as unit, there of it it’s more a is question floating It’s say, don’t duration.

by move if gas, in to very we – the can is regas am wants we to natural got me, change in comfortable for debate, the because terminals units floating the moving I around Europe. policymakers because, their market it. So, bring way, again, policy

to If invest it’s you a point and then onshore from view Europe. longer opportunistic take not Is commitment of the the onshore for than commitment. an It’s same question move, to floating in regas you terminal, build I exactly Europe say. terminal would my linked us one. regas the an And

natural biogas case of, today previously, develop example, you quite have Europe. if the And might will obviously, you and an And question Europe a there a with very in is good projects, for The looking. where I for for see where mentioned or biogas it’s is main say, in also, accelerate. sell It’s neighborhood, of capacity encouraged to stakeholders time I don’t be a think, segments I – develop me it a access in acceptability the question good space be it’s at some investment. Europe we a political gas market – the leaders, being, think you much I price, Europe. I to question a acceleration, I obvious say. biogas would would and leaders, gas the am to quite policy to But low. say listening will I lot in

So, that’s the question.

Because we yes, with a again, Europe, energy. continent So, will fundamentally, a of Europe. lack it’s consider

of natural diesel, see of gas, we lack like energy. have of lack We of energy, a lack lack

benefit transition that’s CapEx a is and So, gas, a will nuclear for because costm from little we has Japan. and of or will a it so for energy electricity for Security for all me, the like That’s energies be the future of Europe. in quite true Europe as true supply that us well of local price is, there, in can develop this higher natural renewable. whatever Europe

fundamentally, the for trend quite And for medium-term, European us medium, is elevated on prices the market in long-term the fundamental it’s so and is prices. energy

Operator

Wong is next question The from Amy Suisse. from Credit

Amy Wong

from Hi. Good please. questions afternoon. of me, A couple

is first one The on LNG. Papua

to a question plans nonetheless the you on plans launched And have couple operator My My Papua So, not but smaller to my important. moved. the later also question. modify though, that’s you relates PNG year. dependent LNG also of you yet second facilities. the incorporate understand PNG on support, any, for move You if has did, to LNG a transactions facility then to your upstream is have And understanding, fee much simultaneously this how of to LNG? I for looking first are liquefaction

You really on have mean and done sinks quickly, growing credibility carbon but that’s topic a area. this moment. couple area in that’s the market is the at a huge I transparency

in you Thank the about bit talk sinks your please? strategy carbon space, a you. could So,

Patrick Pouyanné

course, with of shareholder LNG is LNG. Exxon operator also Exxon. very it’s a the Papua coordinated Papua LNG, PNG Okay. [Indiscernible] of of with

years both. decided leverage ago we synergies few that we a to potential So, need the

in Of their PNG course, by own there the meantime, additional postpone decision a was train. LNG to

what trains the in order the trains a best with three became things makes are that – more we Papua. and be two efficient, scheme for working little So, to closely are on working Today, they possible is them.

acquisition on they is both PNG lot after By Santos wholesale. joined another the of It’s LNG. a because who sides. So, are is company alignment the Papua way, from there there of

the than think to feed The LNG. consistent for upstream when PNG So, in two took decision we on I to reach forward little this say, the will of of reality the launch the the end also to the in upstream Papua, a feed partners the I would part is is timeline production, on part their the, downstream the that longer are project. what at together on we move these the, part say,

So, together the in FID, six-month difference that both the end obviously. the to order at will we see parts take be to today be should

both very converge. to from see goodwill I a parties So,

true, to carbon Peru Gabon, the a some few account but tell think Congo, new because into an credibility. I yes, also you, want in making we can in the sinks, this yes, transparency, we take is one easy in are I lot recently. it’s not steps On

XX carbon axis, but see some They level, are we teams And which long-term importance people is are in at high-value projects. lot they So, specialists, attach to credits. really projects make that of – working today. a to standards. of invest we we all sustainable there make have There have we It’s these clear green not our one washing.

the standards think VR follow we I carefully. which experts, for very the

And to such – credible takes so projects, that we the we very by think don’t that’s why, develop time. it way,

is convinced lot $XXX dedicating are that and we per a year, much itself more not involving – by dedicated million spend could really because have we are of project We we each stakeholders. project a

team But invest. some give into it, natural-based to concern connect are carbon well encourage you very the it Renaud with So, you. account to I Amy, want head – and on his solution, team [ph]. connect you encourage will if the way is you of taken more in about more interested. the we He color could I details you And all the your my IR if Renaud

Amy Wong

Thanks a Thank lot. that I will take offer. you you. on up

Operator

Thank Paul is from The Scotiabank. question you. from Cheng next

Paul Cheng

Hey questions. Patrick. Two

you for mentioned trying have first finalize insurance are I hope First, think year-end. by named to the – project previously, you to

if on that. want update Just to there see any is

the planning capital rising fear return you terms does shareholders? with your recession, for that and budget, that do question, in of of next Second sheet balance impact how year or to

Patrick Pouyanné

continuing are Surinam, an to not drill we progressing easy always Good news, and positively. plan.

you of end I a point again, we think meeting the year. gave by So the

has of sure where there. our are. lot still I have a give I to helps understand everybody more we released to you, it not data. don’t I and to am So, partner am

we the find be And are a inject our oil, there This how on. have do – in so there end don’t we question the but gas, of finding great we And plans. is obviously obviously going gas. So, flare. hydrocarbons. to point is of is And it’s there we gas. of we a valorize course, potential again, Can studies great where it development by year, will clarity reservoirs, the the clear

Now – have way that the and would faced – XXXX, tell I what strong learned for I my you crisis several again recession the face in balance I is lesson a XXXX. that sheet. in the best to to

company we never So, what We have with TotalEnergies. to to have such under our we deleveraging clear, company gearing be X%, within plan doing, which it are is XX%. in a the in been situation

was dividend through For me, the majors maintain we before through ensure We to a and XXXX, COVID the best were know the done only to the lower return XX%. recession, end than gearing it European the it’s to guarantee clear. very By COVID you COVID. of way, shareholders all have be to with even

right So, we accepted year years after. because the gearing XX%, after, down X little we X it went to go above a are and

and events strongly but return the and is through balance cycles the – through is strong to what best exactly recessions shareholders very sheet. believe I for So protection a

commitment repeat So, I to – my my you.

the During it you speech, never we can have cut I XXXX. same since you a the reminded speech, in my XXXX. be we coming recession if dividend I will that introductory tell

Paul Cheng

you. Thank

Operator

from next The Patricot question from Henri UBS. comes

Henri Patricot

questions Thank of you the A for update. everyone. for Hi me. Yes. couple

on Russian billion. The first of impairment one, $X.X just the

it was you expand to for on I the discussed billion? be to you. tax, used triggered year Is get windfall of half? I given that in for but can why sensitivity quarter, at broadly LNG $X.X second earlier, the you upstream. UK different that Thank and NBP like still price, to on etcetera? So, this the the use more mean beginning the the base wondering you was secondly, Should that the fair if And gas prices, parts

Patrick Pouyanné

tax. The quarter first the as first linked that Our quarter, is impairments be said, very the we clear, make point every were that X. some impairment, clearly, impairment it’s to to Arctic we

was on complex the are which the the project to project sanction. be one execute because considering will there much that of So, we capacity more

a participation our to evaluation as to of accounting had Novatek. stake our well. – as put of we that you calculation. we had we – So, our shareholder made an – And release, made we And concluded valuation make according and impairment the if it an that we was participation this – our first the to clearly decision, read rules, you said one, that future we have press of in according

So, billion. it’s around $X.X

There because by As our story we apply annex up press in lowering Russia there all to the XXth follow at better billion June we gradually for which the label, rate calculations. I rules, the release, capital time to euro we of XXst Russia to dollar in employed be of where have have capital the you a going of to the accounting noticed, the which them. to I was than on been reevaluation exposure was were made the have where are ruble, way, the Russia, want one we March. funny, rate, these strange of our think $X quite But by just or had know were clearly our honest.

will we be continue, it’s rules. And clear. So, let’s the

Russia, we monitoring. coming course, on with can, to of We monitor. closely our We the news our review the with taking it’s duty And Of know and Russian assets. our situation that it’s so the many there are news all Board. closely and monitor auditors you quarter-after-quarter

it speech, think you, As in you. my important news today was our and an I speech, for I however, in told statement

September of no you Russia Russia, we projects. the had to strategy aside no TotalEnergies of end present – because growth so more putting in will We new

any aside of of to impact, not our of see presentation, we as put the the Russia Russia without We be the return will will and really from consider aside be continue in that, our that on shareholders the I you affected not financial a we and and perspective. you think said, fact want can continue What even we will to of So, explain there Russia. TotalEnergies future future that this volume we means we portfolio performance, to opportunities impact have the but TotalEnergies why. by putting

price, On I gas changed. it don’t the the Jean-Pierre, think answer,

Jean-Pierre Sbraire

release. No, nothing responsibility press changed, we and published the in same. It’s the

Patrick Pouyanné

volatile sometimes It’s What what $XX. $XX changed that results, has changed that will gas to as and impact in European for our the has you, is you explain good. tell would the our is What that I growing as September. long-term say value – you it changing I from lot. it’s down for And see is absolute to changed absolute a we is assumption and can but $XX well, on value, in volatile, price, has

price I fundamentally, Russian that driven from is price means before because European gas European by the system, than higher out the say. with U.S., the LNG of it’s course, Of that gas would

will that changed from with the positioned we that as also Norway, in So, also UK. has as importer, regas as are benefit on perspective portfolio we our Denmark, European And LNG of the well years. gas TotalEnergies. And very producer a future for

Henri Patricot

Thank you.

Operator

further questions. There is no

Patrick Pouyanné

return you very for help understand call return attendance which course, Directors XXth. to will understand course, the on TotalEnergies you and Day to of of of questions, to think clear, agenda, is I very results important deliver date, our low level your and return strong interesting is. and carefully your can I continue to strong Board cycle, shareholders. to And how which of monitor let’s And September this whatever you, continue in that and Investor thank on of terms shareholders, of we the to invite high, be better So, an put

Everything We be able will or together, U.S. taken the your will meeting presence but York. into the back from be a continent in New be Atlantic the us of done be on in to is well sure the York you join there account time in will in sides just I wish an both hope you of I and and be several like coming years there. welcome we after I European attend health the that on ours, to New to to, for first can a happy nice were you already some are you vacation. but plane good you, important long are – aspiring for call hours us vacation, long Jean-Pierre I a two years. to… summer think take it event, is will tell you you. very to two Thank to in in Maybe the to

Jean-Pierre Sbraire

Immediately.

Patrick Pouyanné

support. thank for for attendance you But Immediately. and your your

Jean-Pierre Sbraire

Thank you.