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    Giacomo Romeo • Jefferies

    Giacomo Romeo's questions to Shell PLC (SHEL) leadership

    Giacomo Romeo's questions to Shell PLC (SHEL) leadership • Q1 2025

    Question

    Giacomo Romeo sought more detail on the Pavilion acquisition, asking why it won't impact earnings this year, and in a $50 oil scenario, which specific areas would face CapEx reductions.

    Answer

    Executive Sinead Gorman explained the Pavilion earnings impact is delayed until 2026 due to the timing of various physical and derivative contracts being integrated. CEO Wael Sawan addressed CapEx, stating Shell avoids pre-determined cuts and instead uses dynamic allocation, trusting the company to deploy capital where it creates the most value, whether in organic projects, inorganics, or buybacks, rather than being locked into specific business unit reductions.

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    Giacomo Romeo's questions to Shell PLC (SHEL) leadership • Q4 2024

    Question

    Giacomo Romeo of Jefferies inquired about the AECO gas price level that would trigger development of Shell's own Canadian resources and asked about the primary hurdles remaining for a final investment decision on LNG Canada Phase 2.

    Answer

    Executive Sinead Gorman explained that the decision to develop Canadian gas assets is based on integrated economics, not a single price trigger, considering factors like asset quality and transport access. Executive Wael Sawan identified the key hurdle for LNG Canada Phase 2 as ensuring the project is commercially investable and can meet Shell's return thresholds.

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    Giacomo Romeo's questions to Shell PLC (SHEL) leadership • Q2 2024

    Question

    Giacomo Romeo from Jefferies asked about the financial impact of the Singapore divestment, seeking to understand the expected earnings uplift for the chemicals and refining segments. He also inquired about the quantifiable contribution of this sale to the company's overall OpEx reduction target.

    Answer

    CFO Sinead Gorman stated that she could provide limited detail due to the ongoing divestment process. She noted that the Singapore asset was not attractive for Shell's portfolio and that the overall chemicals business was at a breakeven state for the quarter. She confirmed the divestment's OpEx savings are not yet included in the $1.7 billion reduction reported to date and will be reflected upon the deal's completion around year-end or Q1.

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    Giacomo Romeo's questions to TotalEnergies SE (TTE) leadership

    Giacomo Romeo's questions to TotalEnergies SE (TTE) leadership • Q1 2025

    Question

    Giacomo Romeo referenced a prior presentation slide and asked about the minimum level of share buybacks sustainable in a sub-$50 oil price environment. He also questioned the company's view on LNG investment prospects in Argentina, where peers have been active.

    Answer

    CFO Jean-Pierre Sbraire and CEO Patrick Pouyanné confirmed that even at $50/barrel, the company could cover its dividend and still have remaining cash flow for buybacks, which would not go to zero. Pouyanné added that the >40% CFFO payout is a floor. On Argentina, Pouyanné stated it is not a priority for major LNG infrastructure investment due to its history of foreign exchange instability. He noted TotalEnergies has better projects elsewhere and is pursuing other avenues to monetize its Argentinian gas, such as sales to Brazil and Bolivia.

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    Giacomo Romeo's questions to BP PLC (BP) leadership

    Giacomo Romeo's questions to BP PLC (BP) leadership • Q1 2025

    Question

    Giacomo Romeo of Jefferies sought clarification on the $2.5 billion potential CapEx reduction, asking what price level would trigger such a cut. He also questioned the low EBITDA in the Gas and Low Carbon segment, asking if the LNG trading contribution was positive or potentially negative for the quarter.

    Answer

    Executive Murray Auchincloss confirmed that the gas trading business did not have a loss but reiterated it was a weak quarter. On CapEx flexibility, he stated that the initial $500 million cut was a prudent response to the macro environment and there are no plans for further cuts at this stage. He emphasized that any future decisions would depend on multiple factors, including OPEC meetings and global demand, and would be made to ensure the company meets its 2027 targets.

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    Giacomo Romeo's questions to Eni SpA (E) leadership

    Giacomo Romeo's questions to Eni SpA (E) leadership • Q1 2025

    Question

    Giacomo Romeo from Jefferies asked if Eni would be comfortable exceeding its 40% cash flow from operations payout target for the buyback if the macro environment worsened. He also inquired about the attractiveness of Argentina as an LNG exporter following the MoU with YPF and whether Eni would integrate upstream.

    Answer

    Executive Francesco Gattei affirmed that the EUR 1.5 billion buyback is a floor and remains affordable due to financial flexibility from portfolio actions and working capital management, not just CFFO. Executive Guido Brusco highlighted the potential of Argentina's Vaca Muerta shale gas, explaining that Eni's role in the integrated project is to provide its expertise in fast-track and floating LNG projects to complement YPF's upstream knowledge.

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    Giacomo Romeo's questions to Eni SpA (E) leadership • Q1 2024

    Question

    Giacomo Romeo of Jefferies asked about the GGP segment's strong Q1 performance, which accounted for 40% of the annual target, and questioned if improving market conditions could lead to a healthy PSV premium. He also inquired about the impact of Egypt's planned LNG imports on Eni's export outlook from the country.

    Answer

    Cristian Signoretto, Head of GGP, confirmed that Q1 is seasonally the strongest quarter. He noted that while Q1 volatility was as expected, he anticipates more opportunities in the coming months, with upside guidance also linked to ongoing contract renegotiations. Regarding Egypt, Signoretto acknowledged a significant reduction in export capacity but sees a potential 'window of opportunity' for some LNG exports next winter due to the country's seasonal demand dynamics.

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    Giacomo Romeo's questions to Equinor ASA (EQNR) leadership

    Giacomo Romeo's questions to Equinor ASA (EQNR) leadership • Q3 2024

    Question

    Giacomo Romeo asked why Equinor is not seeking a board seat at Orsted, given the investment size and Orsted's track record, and whether Equinor would consider injecting further equity if needed.

    Answer

    Executive Torgrim Reitan stated that Equinor has no current plans to seek board representation but will maintain a dialogue with management as a major shareholder. He deferred on the topic of future funding, suggesting questions about Orsted's financing should be directed to Orsted's management.

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