Jean-Luc Romain

Jean-Luc Romain asked about TotalEnergies' new exploration acreage in Namibia, specifically comparing the potential of the Dorris Basin with the Orange Basin, given that Dorris is a different, potentially higher-risk, and less-explored basin.

Answer

Chairman and CEO Patrick Pouyanné clarified that the new acreage is within the Orange Basin, not Dorris. He stated that while the probability of success might be lower in less explored areas, the company had an opportunity to enter the license, joining forces with Petrobras. He noted that both TotalEnergies' and Petrobras' geologists saw potential, encouraging seismic studies and potential future development, reinforcing TotalEnergies' strong presence in Namibia.

Jean-Luc Romain (CIC Market Solutions) inquired about TotalEnergies' new exploration acreage in Namibia, specifically comparing the potential and risk of the Dorris Basin to the Orange Basin.

Answer

Patrick Pouyanné, Chairman and CEO of TotalEnergies, clarified that the new acreage is in the Orange Basin, not Dorris. He described it as a higher-risk exploration opportunity outside the main discoveries, where TotalEnergies partnered with Petrobras due to shared geological interest, with seismic and potential drilling planned.

Jean-Luc Romain from CIC Market Solutions asked if the planned H2 asset sales in Integrated Power would bring the division's RoCE back into the 10-12% target range, and requested a breakdown of the acquired VSB portfolio.

Answer

Patrick Pouyanné, Chairman & CEO, stated that the RoCE for Integrated Power would not reach the 12% target in 2025, as the business is still in a growth phase with increasing capital employed. He anticipates a RoCE in the 9-10% range for the full year. He did not have the specific breakdown of the VSB portfolio on hand but noted that several projects from it had already been approved for development.

Jean-Luc Romain of CIC Market Solutions asked how the company captures value from its Texas integrated power assets during heatwaves and inquired about the utilization rate of its U.S. gas power plants.

Answer

CEO Patrick Pouyanné explained that the Texas gas-fired power plants are used at a very high rate during summer heatwaves, driving electricity prices and demonstrating the value of the acquisition. He noted a counter-seasonal effect compared to Europe, where summer utilization is low. He expects a strong positive impact on Q3 results, as the company will have a full quarter of ownership during the peak heatwave period.

Jean-Luc Romain from CIC Market Solutions questioned if the high level of organic CapEx in the Integrated Power segment seen in Q1 would continue or accelerate through 2024.

Answer

CEO Patrick Pouyanné explained that the quarterly figure represents gross organic CapEx, while the full-year guidance is for net CapEx. He anticipates that farm-downs (asset sales) booked in the second half of the year will offset the initial spending, bringing the total in line with the ~$5 billion net investment plan for the segment. He affirmed the capital allocation to the segment will remain disciplined at around 33% of the total.

Jean-Luc Romain inquired if the recently announced gas compression contract in Qatar is a prerequisite for QatarGas to advance on the North Field West project or the debottlenecking of Qatar Gas 2, 3, and 4.

Answer

CEO Arnaud Pieton confirmed that the contract, which is a pure service contract for engineering, is part of the broader development for the debottlenecking projects. He could not recall a direct connection to the North Field West project.

Jean-Luc Romain asked if the recently announced gas compression contract in Qatar is a prerequisite for the advancement of the North Field West project or the Qatar Gas 2, 3, and 4 debottlenecking projects.

Answer

CEO Arnaud Pieton clarified that while he couldn't recall a direct connection to North Field West, the contract is certainly part of the broader development plan for the Qatar Gas debottlenecking efforts. He also specified that the award is a pure service contract for engineering, not for the delivery of physical infrastructure.

Jean-Luc Romain inquired about the potential implications for Technip Energies if Qatar Energy were to refurbish its existing LNG capacity to reduce emissions, and asked about the scale of the opportunity presented by new EPA rules for U.S. power plants.

Answer

Executive Arnaud Pieton responded that while Technip Energies would be a natural fit for any Qatar LNG modernization, it is not currently on the table. Regarding the EPA rules, he viewed them as a confirmation of the company's CCS strategy and a large opportunity set, noting that Technip Energies is already in discussions with U.S. power generation companies to decarbonize their plants.

Jean-Luc Romain inquired about the results from hydrogen-related experiments in the steel industry and asked about the potential scale if clients decide to deploy this technology more broadly.

Answer

Executive VP Francois Jackow confirmed active work with industry leaders on two hydrogen routes for steelmaking: injection into blast furnaces and use in Direct Reduced Iron (DRI). He stated that while results are positive, the highest volume potential lies with DRI, which could require hydrogen plants five times larger than today's largest reformers. A key variable is whether customers will require low-carbon or fully renewable hydrogen.

Jean-Luc Romain from CIC Market Solutions asked about the primary drivers behind the strong 25% growth observed in the Global Markets & Technologies (GM&T) business line.

Answer

CFO & Executive VP Fabienne Lecorvaisier attributed the strong GM&T growth primarily to the continued development of biogas activities, which saw sales increase by over 50%. Other contributing factors included strong sales in advanced and cryogenic technologies. She noted that while H2 mobility sales are also growing, they remain a more modest component compared to biogas.

Jean-Luc Romain asked about the new hydrogen electrolyser in Québec, inquiring about its potential customers, end markets, and how its operations would be accounted for within the company's business lines.

Answer

CFO & Executive VP Fabienne Lecorvaisier explained that the upstream production will be accounted for in Large Industries, while downstream distribution will be split between Industrial Merchant and hydrogen energy for mobility. Executive VP Michael J. Graff added that the hydrogen will serve both growing industrial needs and emerging mobility markets in Canada and the northeastern U.S.