Bertrand Hodee

Bertrand Hodée of Kepler Cheuvreux asked for clarification on the Argentina LNG timeline, specifically if early 2026 is for the FID or the YPF agreement closing. He also inquired about the remaining steps for an FID on Mozambique's Coral Norte LNG and Eni's final stake.

Answer

Guido Brusco, COO of Global Natural Resources, clarified that the plan is for an FID on the Argentina project by Q1 2026. For Mozambique, he confirmed government approval is secured and the JV FID process is being finalized, with long-lead items already secured. He added that Eni's stake in Coral Norte will be 50% due to an interest swap with a partner.

Bertrand Hodee from Kepler Cheuvreux requested more details on the Calao discovery in Ivory Coast, its optionality, and the next steps for Eni's broader exploration program in the country.

Answer

Aldo Napolitano of Exploration explained that Calao is a large discovery in a different geological play from Baleine, highlighting multiple exploration options in the region that will require further appraisal. Guido Brusco, Head of Natural Resources, added that the Baleine project is advancing, with Phase 2 set to increase production to 60-70k bbl/d by year-end, and a Phase 3 FID is targeted for early 2025 to push production above 150k bbl/d.

Bertrand Hodee requested an update on the ExxonMobil Baytown blue hydrogen project and asked about the Commonwealth LNG project, specifically regarding concerns about potential tariffs and whether a price verification process is underway.

Answer

CEO Arnaud Pieton confirmed that a price verification process is ongoing for Commonwealth LNG. He noted that the client had factored in tariff risks from the project's inception and is actively engaging with the U.S. administration. Regarding the Baytown Blue H2 project, Pieton stated that Technip Energies remains on the shortlist in a competitive process and is working with ExxonMobil to find a viable commercial scheme.

Bertrand Hodee requested an update on the ExxonMobil Baytown blue hydrogen project and asked about the Commonwealth LNG project, specifically concerning potential tariff impacts and whether a price verification process is underway.

Answer

CEO Arnaud Pieton confirmed that a price verification process is ongoing for Commonwealth LNG. He clarified that the client had factored tariff risks into their financial model from the project's inception and is actively engaging with the U.S. administration. For the ExxonMobil Baytown project, Mr. Pieton stated that it remains a competitive process where Technip Energies is shortlisted and actively working with the client on a viable commercial scheme.

Bertrand Hodee inquired about the expected contract size for the Ruwais LNG and Net-Zero Teesside projects and the potential opportunities for Technip Energies arising from the LanzaJet sustainable aviation fuel (SAF) plant milestone.

Answer

Executive Arnaud Pieton stated that the Ruwais project would be north of €1.5 billion and Net-Zero Teesside would be well north of €1 billion for Technip Energies' share. Regarding SAF, he highlighted the massive market opportunity, noting that Technip Energies is well-positioned with its LanzaJet partnership and is already working on 4-5 related FEEDs pending performance confirmation of the first commercial plant.

Bertrand Hodee asked about OMV's 'plan B' and its capacity to flex capital expenditures in the event of a severe oil price downturn, positing a scenario of oil falling towards $40 per barrel.

Answer

CFO Reinhard Florey, while viewing a $40 oil scenario as remote, confirmed that OMV has resilience plans. He outlined three key levers: aggressive operating cost optimization, significant CapEx flexibility (citing the ability to cut CapEx by over 30% in 2020), and the use of net working capital as a buffer, which would release cash in a lower-price environment.

Bertrand Hodee asked if the recent legislative changes in Romania would alter the medium-term guidance for the Gas Marketing & Power business. He also inquired whether the strong H1 cash flow performance could imply a total 2024 dividend at least equal to the prior year's €5.05 per share.

Answer

CFO Reinhard Florey clarified that the temporary Romanian legislation was already factored into the guidance provided at the Capital Markets Day. Regarding the dividend, he did not provide specific guidance but reiterated that shareholder returns are a high priority. He noted that while 2024 market conditions are more challenging, the company is on a good path, and also pointed out some one-off cash outflows in Q2 that will not recur.

Bertrand Hodee from Kepler Cheuvreux asked if the recent legislative changes in Romania alter the medium-term guidance of around €300 million in recurring profit for the Gas Marketing & Power business. He also inquired if the strong H1 cash flow performance suggests that the total 2024 shareholder distribution could match the prior year's level of €5.05 per share.

Answer

CFO Reinhard Florey clarified that the medium-term guidance issued at the Capital Markets Day already accounted for the Romanian legislation, which is considered temporary. Regarding shareholder returns, he stated that while 2024 is more challenging than 2023, shareholder returns remain a high priority. He did not provide specific guidance on the dividend amount but highlighted the company's strong cash flow and commitment to its distribution policy.

Bertrand Hodee of Kepler Cheuvreux sought confirmation of a 2024 FID for Suriname and its budget, and asked about the volume target for long-term LNG contracts with Asian customers.

Answer

CEO Patrick Pouyanné confirmed the goal is a 2024 FID for Suriname and, while not giving a final budget figure, committed that the project will meet the strict sanctioning criteria of a breakeven below $20 per barrel. For LNG, he stated the objective is to convert as much Henry Hub-linked exposure as possible to Brent-linked contracts, with a minimum target of 80% conversion, to protect the company from potential gas market softness at the end of the decade.

Bertrand Hodee of Kepler Cheuvreux asked for the reason behind the cancellation of the Attentive Energy offshore wind project in the U.S. and whether the company has a specific volume target for new long-term LNG contracts with Asian buyers.

Answer

CEO Patrick Pouyanné explained the U.S. wind project issue stemmed from a key contractor significantly increasing its costs. He suggested the project is not dead, as New York State will likely manage a re-tendering process. On LNG, he declined to set a public volume target for new contracts, stating the focus is on marketing available portfolio volumes and securing valuable deals through negotiation.