TotalEnergies SE Price & Performance (TTE)

And like any other industrial activities, this new development is coming with new [indiscernible] [indiscernible] One of them is the risk of fire and explosion while operating our battery energy storage system or In the industry, around 15 incident happened every year And the most serious one was in March in Japan where several firefighters were injured by an explosion. Within Total Energies, our last incident occurred in 2023. Hopefully without [indiscernible] But since then, we have worked on the design specification of batteries we have done so with our battery affiliate SUST which happened to be one of the [indiscernible] include new innovative safety barrier you can see on the the slide by adding early detection of thermal Run away to prevent the fire to spread over. By adding as well water fire suppression system in addition to the [indiscernible] And by adding extra ventilation to avoid the risk of of explosion. In addition, we are implementing now systematically a dedicated training for firefighters on how to fight a battery fire because it's [indiscernible] [indiscernible] we are confident that we can develop our multi gigawatt pipe of batteries while protecting our people, of course, and by limiting as well the risk on our assets.

Thank you.

Jean Pierre? Jean Pierre will be on stage.

You have the first one now? Okay. On safety, sorry. That was for the battery and that's a good transition for our our results in 2024 The first one is on the result on the three. As you can see on the left side of the chart, the fact that we are continuing progressing and we are actually in the lower, if not the best of our peers in terms of comparison. That's one on the left part of our activity. And then you have the right part of our activity where we have introduced the comparison as well on integrated power three comparing our result to the one of the peers in that industry where you can see that have been able to progress from above 1.5 in terms of trade in 2020. To 0.78 and that's today something which is very at the the leading edge of what is done in that industry of integrated power, that has been realized by working on the technological risk as I've just mentioned in the previous slide. And as well working on the behavioral safety. We with two things. One, the way we operate our facility and second, the way we build because we have huge exposure to construction [indiscernible] I should introduce in the room because we have over Executive Committee members.

So but you can identify them. So Nicolas is just there. Nicolas Terez, Vincent from Refining and Chemicals Bernard is next to Renault and we have in the back Aurilla. And Namita, which are there. I think I did not forget [indiscernible] Elo is in Japan, so she's not in London. But she's probably listening to us. So Jean Pierre, Florent is yours now.

Thank you very much. It's a real pleasure to be here with you tonight today to present the 24 results and the main achievement of the year. So So as you know, our strategy balance and consistent strategy, is anchored on two pillars. So oil and gas, mainly LNG on one side, and integrated power on the other side.

We have made great progress in 2024, executing this strategy and incurring free cash flow on both PLIA. Oil and gas and integrated power. So let's start with the high main lights of the year. 2024. On the first pillar, Oil and Gas, we started production at five major projects so Mero two and Mero 3 in Brazil, deep offshore Brazil, Atpoa West in Nigeria, Encore in the GOM of Mexico in The U. S. And Phoenix in Argentina. We launched four major oil projects Grand Margo in Suriname, Ataputu and Sapiatu and over two offshore projects in Brazil and Camino in Angola. We progressed in Naniyah, we're working towards sanctioning the first oil development that Patrick will come will give you more details later on. In LNG business, with further derisk our exposure to spot gas prices in accordance with the strategy we present to you during the CMD New York in October That means that we continue to successfully market our LNG volumes. By signing several new contracts middle term with Asian buyers.

Representing in 2024 more than 6,000,000 tonnes a year mostly with an oil indexation. And secondly, we increased upstream gas integration in The U. S. S. By acquiring interest in dry gas assets in the Eagle Ford Clay in Texas.

We launched also the Marseille LNG project in Oman, and we became a significant gas operator in Malaysia through the acquisition of 100% of Sapura Wengbe. Which provides us LNG pricing exposure and a platform for [indiscernible] growth in terms of production. In summary, on this first pillar, oil and gas, we incurred our upstream production growth forecast of 3% per year, through 02/1930, in a cash accretive way. And we record approved reserve replacement ratio above one hundred and fifty percent one of our records in total energy history. Moving now to the second pillar, integrated power. We were very active in 2024 in that business as well. You see on the slide some of the achievement of the year. The main highlight of the year I will come back on that later. But very important, reached our cash flow target to have a cash flow from operation above 2.5 we are at 2.6. In 2024. And I think, obviously, it's a very good achievement. Let's move to the figure. We believe that the company delivered once again solid results in 2024. In a softer environment, price environment compared to the previous year 2023, the company generated almost $30,000,000,000 $29,900,000,000 SFS [indiscernible] [indiscernible] coming from all the different businesses.

You see here the repetition, the DISCASH flow generation segment by segment.

First, E and P contributed very strongly to this performance with the cash flow generated in 2024 at $17,000,000,000 benefiting from the oil project startup, I already mentioned. In my introduction. Integrated LNG business performed with a cash flow at $4,900,000,000 It was negatively impacted by lower average LNG prices compared to the low market volatility during the first three quarters of the year, that impacted gas trading results. But on the positive side, you will see that the Q4 results shown LNG trading performance back to the level of the first quarter twenty twenty three. I will make a zoom on that later. [indiscernible] of strong performance through the year. With high cash flow year over year, EUR two point six billion twenty twenty four. Downstream cash flow reflect, in fact, the global weak margin environment, especially in Europe, with refining margins down by almost 45% year over year, after the two exceptional years we had, we benefited from 2022 and 2023. Relation with the Russian crisis. And we suffered as well from operating operational issues on some of our refineries, especially in France and in The U. S. However, You can see that the downstream cash flow remained above $6,000,000,000 at $6,100,000 demonstrating the resilience of the company integrated downstream model.

Let's move to the results themselves. So you see that we posted a net income adjusted net income at $18,300,000,000 and the EFS results at $15,800,000,000 taken into account mostly of impairments we recorded in the course of the year on SunPower. And the exit on some African some exploration leases in South Africa. [indiscernible] [indiscernible] Adjustments and inventory valuation effects. In terms of profitability, we had a ROE return on equity at 15.8 and ROE return on capital employed. At 14.8% in 2024, which make total energy once again The number one in terms of YTA In terms of investment, you see the figures. So we invested $15,800,000,000 So the range we gave to you between $17,000,000,000 and $18,000,000,000 On the shareholder return side, we continue to increase the dividends. With a distribution of $7,400,000,000 in 2020 And we executed the $2,000,000,000 buyback program per quarter, so leading to $8,000,000,000 buyback on if you consider all the quarters 2024. Globally, that means that the payout for 2024 reached 50%.

Very important to note that this attractive shareholder distribution was achieved while keeping very strong balance sheet.

You see here the gearing we have end of twenty end of the year. At 8.3%. Or around 9.5 when normalized [indiscernible] Because this figure of 3.8% benefited indeed from positive impacts in working cap for $1,500,000,000 So in summary, we maintain Fort Ray's balance sheet while increasing the shareholder return in 2024. On the investment side, we remain disciplined in 2024 as evidenced by this figure, net investments being within the guidance €17,000,000,000 to $18,000,000,018,800,000,000 for 2024. We continue to be highly selective in the project we sanctioned or invest in selecting local, high return, low emission projects and project resilient food cycles, Patrick will come back on that later for 2025. As you can see with the pie, Total Energy has a balanced growth strategy. With one third of the 2024 CapEx allocated to new oil and gas projects, and $4,800,000,000 low carbon energy mainly renewables, integrity power projects for $4,000,000,000 We continue to be active with portfolio management using selective M and A to enhance to high grade, in fact, our portfolio. 2024 net CapEx consisted of $16,400,000,000 of organic CapEx, but also $4,600,000,000 acquisition, and $3,200,000,000 divestments. Once again, that means that we continue to be very active on that side M and A side.

Previously, I described our focus acquisition on the on the upstream side, sorry, And on Integrated Power, our position are focused on key deregulated markets such as The U. S, The U. K. Or Germany. I will come back later on that as well. 2024 divestments included in the upstream are exits from Brunei, so the sale of our E and P subsidiaries in Brunei, In downstream, the closing of the second part of the deal with Coustard, with the sale of the retail station Belgium, in The Netherlands and in Luxembourg. And within Elective Power, several divestments in line with our strategy to found out our projects, at Siloday when the production is ready to start, Just to give you two examples, so solar and battery project in The U. S. That we closed last December and 50% of our interest in Seagreen projects offshore wind in The UK.

Let's discuss now of each of the business segments in more details. 2024, I think, showcased the depth of our portfolio. Upstream portfolio. Full of attractive growth opportunities that are translating into Project sanction, delivering high return and robust reserve replacements. You have here the list of the main project sanction in 2024 main projects on the oxide, and two projects on the gas and LNG sites. This project encore 3% per year accretive production growth through 02/1930. And very important to notice that we are already derisked by signing largely lump sum EPC contract on that [indiscernible] The chart on the right hand side of the slides highlights TotalEnergies, compelling investment case. We already have the resources to grow underlying production and cash we've ultimately support that will ultimately support dividend growth and attractive shareholder returns.

Saying that differently, no need for us to make large acquisition, large M and A to fill any potential gap. Given our consistent strategy we continue to explore and develop the upstream business We have maintained a strong and consistent proved reserve life index of around twelve years since 2018. You see here the index for 2024 twelve point four years, it was eleven point seven years the year before. [indiscernible] I think it's clearly in contrast with some of our peers that posted a decline. That means that Exxon and Total Energy are leading the peer group by a wide by white margin in terms of portfolio longevity. With a key advantage in the depletion business and support cash flow into the next decade. Also, you add the figure for proved and probable reserves, which are now at €88.5 Saying that differently, we are not a shrinking company. We have been replacing reserves at much fast we are replacing reserves at much faster rates than we are depleting them and at a faster pace compared to summer peers. In 2024, our reserve placement placement was a robust 157% of production up from an already strong figure It was 141% in 2023.

Last majority was was done through organic growth. Which translates into a strong organic drizzle replacement ratio of 150%. These reserve replacements figures demonstrate clearly the depth once again of our portfolio and that we are successful to replenish it year after year. Let's move to Integrated LNG business. As shown in the chart on the lower left, The results end of the year, so for the fourth quarter, were at the highest of the year and been Adjusted net operating income increased 35% sequentially And the result we are back to the first quarter twenty twenty three level at over $1,400,000,000 The two blue bars you see on the charts on the lower left. This performance was driven by a 6% higher hydrocarbon production for LNG An average LNG price above $10 per annum in the Teo And ultimately LNG trading results that were able to capture higher market volatility. Although this rebound during the fourth quarter overall, full year 2024 results were negatively impacted by low gas price volatility due to the mine twenty four twenty three-twenty four winter high stock level, particularly when at the start of the year, low demand and limited trading opportunities due to globally a balanced global LNG markets.

So what are our expectation or anticipation for 2025? As you can see in the top left chart, a colder twenty four-twenty five winter and low end of season storage is expected. The end as well of the Russian Ukraine transit agreement to use the pipeline to import Russian gas is also a factor that will contribute to tighten the market. Tightness in Europe should lead to more competition between to attract or to capture additional energy. Vessels, and it will result in increased arbitrage opportunities for flexible cargoes between The U. S. And Europe and Asia. This should benefit to TotalEnergies given our dominant rigas position in U. S. And our large position as an LNG exporter, The U. S. We are number one, as you know, In that matter. Moving now to Integrated Power business. 2024 was a continuation of our multiyear track record of performance in that business. It's definitely a growing business. You see here the progress that we made between 'twenty one and 'twenty four. We have grown Integrated Power into a business that is yielding strong results. We are able to increase by nearly four times the cash flow over the period 2021, 2024.

Reaching once again our objective to have cash flow in 2024 above $2,500,000,000 and ROIC increased from 7% to 10%. That was the target we set [indiscernible] In 2024, the company further enhanced integration in the regulated market for flexible asset acquisitions.

So we acquired CCGT in The U. S. And in The U. K. For the year for three gigawatts. And in addition, we increased storage capacity through the acquisition of a major player in German battery market, the middle of the year. We also have been active in consolidating our renewable portfolio, As part of our foundown strategy in Integrity Power, I mentioned We successfully farmed down the equivalent of 1.2 gigawatts of renewable and battery projects resulting in $1,000,000,000 of CapEx being recycled with more than 10% return. On top of that, the company acquired VSB, it's a German based renewable project developer, with a sizable 18 gigawatts pipeline mainly in Germany, France Poland, with a closing expected this year. Addition, in 2024, the company strengthens its differentiated markets offering of clean firm power For example, you have the F2 example, we capture premium [indiscernible] clean from power to large industrial and big tech companies and through the acquisition of Cadra, it's a renewable power integrator in Germany, The company will be able to maximize the value of merchant exposure in deregulated markets. On the emissions front, 24 achievement shows that we are ahead of our objectives. It's the case on Operated Scope one and two emissions. [indiscernible] And lifecycle carbon intensity.

You see here Operative COP one and two emissions are down 36% compared to twenty fifteen. And an absolute level, you see the figure Cop one and two on our operation and our operating facility in 2024 were at 34,000,000 tonne compared to our target of being less of having less than 38.8 tons of CO2 In fact, reflecting year on year So on one side, a further decline in our operating oil and gas facilities, reflecting emission reduction initiative undertaken over the last couple of years. And in the other hand, the impact of the integration of the new CCGT, I mentioned to you, the acquisition we made in 2024, particularly in The U. S. And in The U. K. On the maintain side, the 15 reduction targets we have to reduce the maintain on our operation by 50% between the level we have in 2020. This reduction target was achieved a year early with 2024 operating methane emission now minus 55% compared to 2020 levels.

We achieved this thanks to continuous decrease in flaring fugitive emission in particular. In E and P. And you have here the example of Gabon, with the elimination of routine clearing two years early than anticipated. And we will continue to reduce operating methane emissions a new objective for 2025 with a target of minus 68% compared to a reference 2020.

To achieve that, you have different action that will be taken First, the decision we made last year to deploy continuous detection system across all the operating assets. In the company. That means that in 2025, you see here the figure, more than 13,000 equipments for continuous maintenance tracking will be developed [indiscernible] And additional technologies improvement will be implemented to further reduce methane emission. You have here some example to switch gas instrumentation to where or to replace And last but not least, we reduced our lifecycle carbon intensity by 17% compared to 2015 which is better than our initial target of 14%. This indicator reflects as you know, the amount of CO2 emitted per unit of energy sold and which is in fact which matter in our industry. This indicator translates perfectly the evolution of our energy mix and the implementation of our strategy more energy with less emission. And the final slide for this section is the benchmark. So the positioning the relative performance of Total Energy compared with our peers on four important metrics. So the proved reserve life index, the upstream production cost, the ROIC, return on capital employed, the dividend per share growth As already mentioned, I'll start strategy has remained consistent and it will allow us to deliver on results and to remain in the competition very well positioned.

Starting with the Upstream, our reserve life index increased I mentioned to you already from eleven point seven years in '23 to a very robust twenty point four years in '20 we're on par with ExxonMobil and ahead of the remaining peers reflecting once again the depth our portfolio. We had the resources in hand, to continue to grow production and to grow the cash flow, the underlying cash flow for years to come And once again, we do not require big M and A to do that. Moving to the cost, we have streamlined production costs. Total Energy has consistently reported the lowest upstream production so PEX per barrel. With twenty twenty four figure below $5 per barrel equivalent. Of oil equivalent. This is, of course, a competitive advantage that we want to keep, allowing the company to be resilient even in a low price environment. In terms of profitability, we are pleased to report that in 2024, again, Total Energy ranked number one. [indiscernible] it's the third consecutive year that we achieved this performance. Demonstrating once again that it's possible to be the most profitable major and to be a leader in the energy transition. On the dividend side, so it's last graph, the dividend growth the dividend per share growth We are positioned number two at 25% growth over the last [indiscernible] which reflect our strong commitment vis a vis our shareholder.

Total Energy maintained, as you know, the dividends between the COVID crisis was not the case of all our peers.

Some of peers decided to cut the dividend at that time. And our dividend growth is underpinned by the company deep portfolio, strong free cash flow. [indiscernible] at 8.3% and of 24% or 9.5%. After normalization, And with that, with that benchmark, Haile, the floor to Patrick. For 2025 outlook. Thank you, Jean Pierre, for this €24,000,000 which people say it's less than before, but the the two years before were exceptional. It's for us the first largest results in the history of the company. So it's still a good year. And in fact, again, I said that in 2023 and 2022, after the exceptional year we were in entering into a new era because the balance sheet was completely leveraged. And the succession, in fact, of last three years it's easier for us to implement the strategy we have decided because we went in a world where we have more, I would say, capacity to deploy it. And that's what we've done in 2024. Jean Pierre said several times, we have a deep portfolio of plenty of good opportunities. What I will show you is that in 2025, what we want to do is not only to grow but also to have a to deliver additional free cash flows, which are the most important.

That's why we have this we selected this title delivering an accretive growth and resilient shareholder returns, that's a program for '25 Few words about the markets. So in fact, the old markets, people toward to me, it's volatile. I think when you look at the it's a little stable. In fact, this line is quite flat, in fact, It was flat in a highway last year than this year. But in fact, we can say that with two different, in fact, environment. In 2023, still a very high increase of demand because the end of the COVID recovery in China. 'twenty four, the full year of markets were more reassured by the demand. At the end, it's only 800,000 barrel haul per day. All the expectations on the supply side did not materialize in fact as it was anticipated. And finally, at the end, the OpEx plus has done a good job to maintain this price, I would say, above $70.75 dollars per barrel. I think for we look to 25 I expect IEA, not us, we have no experts say it plus 1,100,000 barrels of [indiscernible] Which will be higher than 24 the way, it's more or less the average, a little less than 1% that we observed on twenty years.

Good news from '24, by the way, is that the increase of all demand in India was as big as the one in China. So it's a we have a new engine of all demand growth in the world. India is moving to more infrastructure, more manufacturing business model than the one we had in mind. The supply side, of course, 25 strong supply from non OPEC and The U. S. Policy and U. S. Administration is willing to push this production up. So So U. S. The U. S, by the way, liquid production in 2024 increased by 700,000 by when we spike value we are about liquids, it's in fact more NGLs than all. Because in fact, most of the liquids production in The U. S. It's coming from the increase of the gas and all the associated NGLs. The oil is increased by 0.3 We plan for less 0.2, 0.3 for 2025. So that's to have that in mind. Of course, Brazil, and we'll come back, we'll benefit from the growth in Brazil. Our sales Vienna as well. We are not there. We do not intend to be. We are next to Surina. We'll see. The market, of course, will be a debate, I think, in 2025 becomes a big the U. S. Administration and OPEC plus So it will be an interesting debate to observe.

We have been a little cautious in the way we approach the year We put all the results I will show you as a forecast based on $70 We are more $80 But if I can do it at $70 I could do it even easier at 80. So you will have some sensitivity in the presentation. On the gas, it's quite different. I think last year, the year [indiscernible] we had a very good, I would say, weather during last winter or mild weather. And in fact, we ended we exited the winter twenty four with high inventories And in fact, the full first half of the year so third, I would say some quite low volatility in the gas markets. Around $8.09 dollars per million BTU for TTF during six months. There was no really need to replenish full storages, the storage were high.

And that, of course, did not help, by the way, or the the capacity, not only the price, absolute price was lower. Also lower volatility, which did not help our gas trading to perform. €425,000,000 in fact, as you can see, however, is in Europe, but this is much colder. And you have another element of which is not Bolivia, but you have also the fact that now the transit for Ukraine from Ocean Gas has been stopped. It creates another tension in terms of supplying gas to Europe And what we observed is that today, we are already at this stage, two months only still two months before the end of the winter. At the low, we begin to have depleted quite well storage and it's reflected in the forward curve [indiscernible] $16 per million BTU. So it's about $15 per million BTU. We anticipate clearly I would say, more volatility, 25 higher prices, people could say there will be LNG additional LNG capacity. It quite limited. In fact, when we make the math for '25 we evaluate that around 20,000,000 tons of new capacity coming on stream. Which means 5%. So it does not change the fundamental trend.

And you will see probably again more competition between European buyers, which need to replenish their inventories and Asian buyers, So of course, for us, there are two spreads which are fundamental TTF minus and REUB. And then you have the GKM minus TTF because it's the arbitration with the volumes we have in The U. S, our rigas capacity in Europe, of course, we can benefit from more arbitration when this spreads are going higher. But what we expect, we anticipate, again, we'll see [indiscernible] gas and energy and oil. Our KPIs for 25%, our objectives, I will speak about growth. But then, of course, growth is not enough. It's we need to deliver more free cash flow, and it's more volume, more energy, less emissions and growing free cash. So globally, our energy production, when I compare the oil and gas and the electrons, we grew by 5%. So we'll contribute to I would say, a global supply all the people of this planet 5% more than 3% growth on the oil and gas. And more than 20% growth on the electricity side and we will reach more than 50 terawatt hour 50 terawatt hour is all halfway of the objective by 02/1930.

And in fact, the electricity production from total energy will represent 10% of our oil and gas production in 2025. So it's the ones who want to see of the transition is it March? It is. It is. It's reality. It's It will be becoming for me a sizable business. And I would say the achievements in the last five years, has been we are on the road map, and I would say quite a success So that's the key. Refining Vasant will do its most with its teams to have a better utilization rate. I will come back LNG sales, about 40,000,000 tons. We don't have new I would say, LNG plants coming on stream, so we should be in the range of what we achieved. 40%, 45%. And renewable gross installed capacity, we set this target of 35 gigawatt by end of twenty twenty five in 2020. I will come back at it. We will be there at 35. We have 26 by end of twenty four, and we have exactly nine gigawatts, which are being built today, 8.9%, so maybe 0.1% we'll miss. But which are being built. So it's reality. It's not just an objective. A matter to deliver.

Of course, this capacity. But again, more and more myself and and the board, we attach more and more importance to the production of electricity because at the end, our results are more linked to the production, but the growth capacity [indiscernible] Less emissions, yes, we continue to make it part of the I would say, our global agenda. We need to produce more hydrocarbons, but with less emissions. So on Sculpt one and two, we set an objective less than 37,000,000 tons.

Of course, can say it's not ambitious enough, but we have one difficulty we face, that we have more gas fired per plant in our portfolio that we acquired in 2024 in The UK and The U. S. Where we run and if it's colder in France, we'll have a higher utilization rate. So more CO2. What is important for us is also to see the decrease on the oil and gas operations was 35,000,000 tonnes in 2023, 34,000,000 tonnes in twenty four million and should be to 33,000,000 tons in '25 The methane, we are clearly at the a leader on that part. I think it's a very it's an easy way for me for the oil and gas industry to have a real contribution to diminishing this greenhouse gas It is in our hand, it's stopped swearing, it's stopped venting, things which are not high-tech, I would say, closed flare. So we have really embarked the whole company [indiscernible] Nicolas really very strong about it. He's a master of cross layer all over the place all over of sedations. Setting all these continuous equipment for detection of methane like for oil, and I think it's really we want to be visitors and the teams are motivated.

And last but not least, because it's the marker of our strategy of transition, which is the carbon intensity of the cells of energy, the the word sales is missing there, We have reduced it by 17% want to continue to we are, in fact, quicker and on the roadmap because we deliver the, of course, the electrons which are, I would say, a decarbonizing part of our cells. But last but not least, all that because we want to grow the free cash flow, so we selected three indicators. I will give you some others in the presentation. Production costs less than $5 could be $5 but not so we don't need to have a big I would say, cost saving plan, but we are permanently maintaining. And then And honestly, the fact that we have been able for the last three years, despite the inflation that we It's maybe not spectacular, but it isn't it. So other companies of my peers have engaged in large cost saving plans. I think we've done it between 2015, 2020. We have the benefit. And today, we are strong with the team. Are very efficient to manage this $5 per barrel. The CapEx, I will come back on it.

I'm sure you will have questions, 7,000,000,000, dollars 17,500,000,000.0. As a range and cash flow from operations more than $29,000,000,000 at $70 We've done $29.8 So it's quite an improvement. There is some free cash from additional cash flow and the objective of my presentation, we tell you where it will come from. In fact, so that you can certify that all this balance of all the business model and the strong returns we intend to deliver to shareholders are in safe hands. Which is true. So by the way, the CapEx first. So it's true that we gave you guidance of $18,000,000,000 I think in New York. On organic CapEx. Today, we came with organic CapEx of 2017, so reduction and a global CapEx including M and A of $17,000,000 17.5 Why? In fact, it's because we've done some few done where we worked, in fact. We have to be clear, all the growth accretive projects will be developed as planned. There is no reduction on any of the nice opportunities we have in our Port on of Darren Woods from that perspective, no change. But at the same time, have many projects. And so with Nicolas, and we agreed with all of that with the teams, not to overfrench the team by continuing to invest in small projects but focusing the whole company to deliver these large, creative projects by the program.

So it led us, I would say, in the Afrin to find $500,000,000 of small projects, which at the end, it's 50 plus 50 plus 50, but it's a sort of dispersion. So refocusing as we know also, but have a workforce and we cannot ask them to do everything at the same time. So it does not impair the global production profile that we have delivered to you, but it's a question of streamlining focusing the teams, being efficient the way we spend our cash. The other decision we took to be it's more in the low carbon molecules. It's a little a slight It was $800,000,000 or $900,000,000 in 2020, the report of $900,000,000 in the report of 2024.

It's only $500,000,000 the budget We drew some lessons and we consider today that it's better in some businesses like EV charging or biogas to have a leverage through equity. We don't see enough returns in all that, to be honest, in terms allocation of equity of company is full equity is not our priority, and we drew some lessons Doesn't mean that we don't continue to do it, but we moved to some business models with less capital intensity. It's not major, On the SAF molecules, we continue. In fact, the budget, we have this big project Grand Prix with the Vincent team, which will end before year end. So it's the end of the project. So we have done the top. So that's why also. But $500,000,000 So low carbon molecules is reduced because we drew some lessons. It doesn't mean we will not continue the staff strategy. That we are Allocating our capital and our equity in the best way. So that's the reason why we came down to SEK 17,000,000,000, SEK 17,500,000,000.0. We still are in case of challenging market conditions. We have identified another billion, which we could decide to to arbitrate during the year.

At this stage, it's not necessary.

Power is at $80.75.8 dollars So it's not that situation. So that's why I would like to it's also true that compared to September, we continue to execute a lump sum contracts and a lot of them are largely lump sum. So we have security. I would say we have a good vision for 2025 of what we will spend If there were overrun, it's not in 2025, it's more in 2028. So I hope there will not be So that's also why we can we are confident And of course, it's a good work. It's an effort, but continuing to streamline even more when you have a large portfolio of opportunities think it's a good discipline. So I announced to you a growth of more than 3% for the up [indiscernible] In fact, you have here the list of the new projects, the new productions. Represent 150,000 barrels per day.

What is remarkable on this chart is that six of the eight projects are already started. So it's mainly a matter of ramp ups We have two projects which have to be to come on stream. Balimar in the Gulf Of Mexico and Merufor in Brazil. Whereby the operator is a little more optimistic than ourselves. So it's good. By the way, overcaract 66 on this slide, you have free gas projects Phoenix, Tula and Yaron in Malaysia. Have five oil projects. It's important for the next slide.

And by the way, Autotel is operating four Petrobras three and Chevron two. So we rely on two of our big operators, but nice operators. So I'm not I'm quite comfortable with this this figure of 3% because it's mainly ramp ups, and we are underway. To deliver it. Of course, it's more important. It's not only growing production, it's additional cash flow. That's the good news and important news when we look to this file and is that the growth of 3% of our upstream production more than three, will be translated in terms of cash flow from operations by an increase of more than eight In fact, this portfolio of projects of course, the portfolio in Brazil, in the Gulf Of Mexico are accretive compared to and that means that for the same amount of CapEx, in fact, more or less the same between the two years, organic CapEx you will have an increase of $1,300,000,000 of free cash. 8% is $1.51500000000.0 dollars sorry, $1,500,000,000 of free cash which will come from this growth And I think that's a good news, of course, for that's why we have the Board are confident in the return to shareholders, and we have decided again to increase the dividend by another 7.7% and the final dividend by 7.6%.

So that's, I think, important. Win TotalEnergies value over volume. It's not just growing. It's also delivering more free cash flows. One of the country in which which is successful from this perspective, which will contribute to these additional free cash is Brazil. Brazil, in fact, is becoming in 2025 the number one country in our portfolio in terms of cash flow from operations.

It's new. Maybe you did not notice, but in fact, since 2015, we have built a portfolio. Today, we have we'll have eight fields producing 180,000 barrel per day.

So it's a successful story. It's quite interesting, by the way, to build such position The average margin at $70 per barrel is about $35 per barrel. So in Brazil, we will continue to invest because we have two other projects that we sanctioned in 2024. Sipiatu and Ataputu, which will contribute to additional free cash in 02/1930. [indiscernible] And we had access to when you look to the history of the cost of access to all these resource, it was in fact quite a good quite a low countercyclical cost of access. We did not discover them, but in the deals we've done with Petrobras in 2015, 2016, then the TOR rounds where we participated with low competition. We managed to be it's a good demonstration on how to build a strong position and in a new country. We have also some exploration potential. We continue to to look to that. The other country in which I want to touch a point because I'm sure we have plenty of questions is Namibia. So I prefer to preempt the questions. Our friends have made some decisions And in fact, we know to be clear, we share the same partner and we have the data.

We have some data sharing agreements between our friends and ourselves. So we can compare It's true that we were probably, I would say, more lucky or slower or better they selected a block where clearly the Venus discovery have better characteristics, petrophysical characteristics. The oil in place density, dollars 10,000,000 to 20,000,000 per barrel of oil. Compared to the adjacent discovery, which was less than five It's a sixth reservoir of 8,120 meter. The permeability is not very high. I will come back on it, but it's two to 4,000,000 Darcy compared to, I would say, less than one So all that makes, in fact, the commerciality of this discovery is achievable. It's in our hands. We are working on it. We have we that's why we don't make any write off because on the contrary, we want to transform this discovery into production. So probably we have there the art of a system on this eastern on the Western part of Namibia Orange Basin. So there are some challenges. That doesn't mean it's not challenging. Yes, the probability is not high. There is high UR. UR in our license is lower than the neighboring one. €500,000,000 again, €700,000,000 So still again.

But the challenge is in fact that you have as we don't flare, I remind you, we don't flare, no flaring policy. We have to reinject the gas in the low permeability metrics. So that means that we have we cannot the plateau on which that we'll reach will be lower considering, but it will be a very longer plateau and a short slow decline along the years. So we are designing today a project of 150,000 biolovol per day production. It's a very light oil 45 API, which is good. For its [indiscernible] With a long shallow decline after the plateau.

The other challenge is 3,000 meter water depth and 300 kilometers from the coast, but would say that's not but I mentioned them. Because but it's not really impacting. So [indiscernible] and we are is to be able I will not tell you less than $20 per barrel, but today, we are confident we can reach $20 per barrel of development costs and also, of course, to continue to minimize our greenhouse gas emissions. We target 15 kilogram of CO2 per barrel on this development. So on this one, the plan is to move forward. We apply the same ideas than on Suriname. Taking FPSO with contracting a contractor standards, which have been quite efficient in terms of managing the cost. There are some ideas to optimize, by the way, even the design of the ESP, so the contractors I don't promise you we'll sanction it before year end. I know it's an analogy, if I'm more about beginning the first half of 'twenty six, but it's it's an important it's a good project. And on which we are working. So it's good news for Namibia. And for of course, for Total Energies, Our neighbors in the North, we are not surprised by their results because the last well we've drilled, Tambour was not good.

We are not surprised that the neighbor in the North did not make any discovery. It's quite consistent We are in the center of this ecosystem. I would like to add that we have, in fact, some potential continue to explore, And we so it's not MDN. Venice a focus of, I would say, the engineering and project teams. But we have to we will drill I think during the second quarter, the rig is on its way. Marula, which is a big prospect. You can see South Of Venice. We have another one on these blocks in Namibia, which is called Oleamp on the block next block. It's a different thematic, but it might be it's an interesting exploration to dwell. We plan to do it either end of 'twenty five, beginning in 'twenty six because we would like to have a full campaign between Olam and then continuing in South Africa. We took some positions on the Orange Basin on the South Africa side where we have two prospects to be drilled. One is called Valtrus and the other one Nelah. So the permitting process in South Africa is a little longer than in some of our countries.

The idea is that in 'twenty and 'twenty five, 'twenty six, we have a ring coming and drilling these three exploration wells. So an important year for Namibia for progressing on the project. On integrated LNG I would not come back on all the comments of Jean Pierre, who explained you, but then I mentioned it about the environment for gas price. Yes, we think we have a might have a better environment, not only absolute term, but also in terms of volatility. If we maintain the performance of the fourth quarter, but again, we should and we the target is to come back to after a year where we are, I think, at $4,800,000,000 of cash flow to come back to target €6,000,000,000 not more, but let's try let's target 6,000,000,000 And Stephane and his teams are taking actions '25 is also a year for us where we have to progress a number of projects, LNG projects, because we should come on stream in 2026. It is a case of Energia Costarzoles In Mexico Nigeria LNG 2027 will be end of twenty twenty six, so little impact on the '20 performance.

But more for '27. So that's also as you can see, we have six LNG projects, which should being the way to be are being built And so this is, of course, another part of the execution efforts of all the teams of Total Energies. Last but not least, but I would say a lot has been done in 2024. By with, I would say, this strategy of securing some branch related contract with Asian buyers successfully. It has been on 6,000,000 tonnes, a very good achievement. We will continue to work on it because if we have opportunities, as we think that the market might be I would say, softened by the end of the decade, It's a good way to take benefit of it if we have some good contracts which are all related. So that's for this one. [indiscernible] On this slide, I have only some few figures. I would say, again, this year 2025, we will reach this electronics production will represent 10% of the oil and gas production. So it's I think it's a good block on our roadmap. Alfa Romeo, 30 of we say €2,500,000,000 to €3,000,000,000 We made €2,600,000,000 We have benefited in the last in twenty four of and twenty twenty three, by the way, of some edges which we had done because of the high price of '22.

We don't have them in 2025. But we have additional productions. We have new gas fired power plants. So we are confident we could [indiscernible] these objectives in terms of cash generation. It's not return, but maintaining the 10% return on capital employed even on the roadmap of Stefan and his teams. We are working, but I will answer questions. On the downstream, So it's clear that the landscape has changed. You have on the left the refining margin, the European refining margins, which for us is a quite an important I would say, API The environment has changed in the middle of the year. You can see you have the in gray the min and the max 2018, 2021 before the which is a war You have where we were in the last you can see where we're in 2022, 2023 largely above, but it was, I would say, a hysteric market. We benefited from it. In 2024, we are back to a sort of normalization a little low because $25 per ton is on breakeven. So I prefer $35 per tonne as we are optimistic we have made the budget $35 per ton. But maybe if you are tariff on Canadian crude oil, we could reach it.

Yesterday, it was at $40 So it's not impossible. Sometimes you have some events in this planet, which can help you. You don't control everything. But what we should do, that's why we have a target of $7,000,000,000 downstream compared to the $6,100,000,000 this year, because there was also some miss, to be clear, on the operational side which we estimate a little less than $1,000,000,000 I'd say but we opened and some of these seems are really motivated to eliminate this miss a very poor performance on Dansche which was not fact, running well We are hoping that you will run again from March We had some issues on the cracker in Normandy, not because of the cracker, but there was a storage, there was an an accident, technological accident, independent on our wheel, but which affected us. This is solved. So we are back to normality. Port Arthur as well is quite quite a challenge for years. We have changed the management with Opel, we will deliver the results.

So it's a matter of coming back, I will say, on fundamentals, of course, discipline on cost, but also delivering the energy efficiency program should deliver $100,000,000 and of course, plant availability. So by the refining, this Downstream segment is helped, I can say tell you, by performance of the marketing and the trading. Marketing is quite remarkable because we sold quite a large portion of our German Belgium networks In fact, the cash flow from the marketing in 'twenty four is at $2,300,000,000 It was exactly the same, but $2,300,000,000 with these networks. So we gain, we sold them for 3,200,000,000.0 And in the meantime, I see no impact on the cash flow generated by the division. So it's quite remarkable, and I can congratulate the teams of Bernard So at the end, you could tell me we would have done €100,000,000 more, but I like the idea that we cash in these networks in an environment where we are not strategic assets, at the end, we continue the performance. Trading is doing well as well. And that's why we target $7,000,000,000 an improvement, but we have some good reasons. It's not just a margin assumption. It's fundamentally solving the operational issues we had and continuing to deliver on marketing and trading as per [indiscernible] So all that gave us and I will give you the math, but before so the Board of Directors look at it.

We have a growth in front of us, a growth of free cash flow, and I mentioned $1,500,000,000 additional free cash coming at $70 from the upstream growth in 2025. We planned €10,000,000,000 So it's a step between €24,000,000,000 and 2030.

So it's a good step. So this, we are confident. We have a strong balance sheet. Board of Directors for the third year in a row decided to increase the dividend by 77%.

Here, it's not for the full exercise. It's paid dividend per year. So that's why you see 7.2%, but it's paid in a year. It's a combination of two exercise and some interim dividends. So in fact, since for the last three years, we have increased the dividend by more than 20%.

So it's quite it's quite a good I think, good return to our shareholders. We have translated the euro per share because of dividend is denominated in euro, in dollar per share on this chart because we have saved some dollar investors. That's true that they benefit from higher growth by the way, at 1.1% in the last two years, 1.0405 a little lower. But the average for U. S. Investors on 22%, 25% compared to 7.1% for a European investor would be between six point five and seven point eight. So I would say it's not we are depends on the exchange rate, but It should it's a strong also nice upgrade. On the buyback, it's an trend chart. So I don't know if it's a Mondrian chart, but you know we have bars of €2,000,000,000 €2,000,000,000 €2,000,000,000 I told you in New York, we want to maintain the €2,000,000,000 assuming reasonable market conditions The market conditions are are very reasonable. So we maintained the €2,000,000,000 I know there were some questions marks among you after the third quarter results. But generally, when we announce something, we are consistent. We know what we do.

And of course, it has been reinforced by the two the strong or the low gearing at the end of the year by the end of the year, we knew that there will be a way to return this draw on the working capital. It came it's not will try to find a way to normalize it around the quarter, but it's what's had some fiscal effects. 8.3% of giving is low, but I remind you, we're at 7% in twenty end of twenty two at 5%, 8.2%, 8.5% in 'twenty four, So the track record under 10 is quite well established. In this company. So we have some room, let's be clear, and that's why I want to confirm the intent is to maintain this $2,000,000,000 of buyback per quarter. We make some math. You have them on this chart on the left. At $70 we would generate, we told you, more than 29,000,000,000 So we have, yes, a deficit and CapEx, of course, lower CapEx is helping the would say the balance. You have something like [indiscernible]