Kris Copeland

Kris Copeland asked about the current appetite for signing new Power Purchase Agreements (PPAs) given discussions around remunerating electricity prices differently in France, the risk-reward of regulatory risk for offshore wind projects, and an update on the Mozambique force majeure lifting.

Answer

Patrick Pouyanné, Chairman and CEO, expressed preference for market-driven approaches and PPAs for commercializing assets, noting a French offshore wind contract with CapEx protection. He stated that Europe needs investment in renewables and grids, and over-regulation would hinder this. For Mozambique, he confirmed the force majeure is lifted, and they await government approval for the new plan and budget, mobilizing contractors for a 2029 project delivery.

Kris Copeland asked about the 'French creativity' regarding electricity and wholesale power prices, TotalEnergies' appetite for new Power Purchase Agreements (PPAs), the market evolution, and the risk/reward of regulatory risk, referencing a deal with RWE and German offshore wind. He also requested an update on Mozambique following the lifting of force majeure.

Answer

Patrick Pouyanné, Chairman and CEO, stated that in Mozambique, TotalEnergies has lifted force majeure, is awaiting government approval for its new plan and budget, and is mobilizing contractors for a 2029 project schedule. On electricity, he expressed a preference for market-driven approaches over regulation, noting that PPAs are the best way to commercialize assets, and that European authorities show little appetite to change fundamental market rules, emphasizing that over-regulation would hinder necessary investments.

Kris Copeland from Bank of America Corporation requested a review of Equinor's net working capital performance over the past nine months, including an outlook. He also asked for an explanation of the significant decline in the Norwegian business's discount to Brent in Q3 and its expected future trend.

Answer

Torgrim Reitan, CFO, reported a $1 billion reduction in working capital for the quarter, bringing the total down by $3 billion year-to-date to $3.7 billion, primarily linked to commodity prices and MMP-related reductions, which he deemed a fair level. He attributed the improved discount to Brent in Norway to Johan Castberg coming on stream, which achieves a $5 premium to Brent, impacting the overall shelf average.

Kris Copeland asked for a review of Equinor's net working capital performance over the past nine months and an outlook for future levels. He also requested a review and outlook for the discount to Brent achieved by Equinor's Norwegian business, which saw a significant decline in Q3.

Answer

CFO Torgrim Reitan reported that net working capital decreased by $1 billion in Q3 and $3 billion year-to-date, now totaling $3.7 billion. He linked the reduction to commodity prices and MMP-related factors, stating the current level is fair given market structures, volatility, and price levels compared to the energy crisis. Regarding the discount to Brent, he attributed the improvement to Johan Castberg coming on stream during the summer, which achieves a $5 premium to Brent, positively impacting the overall Norwegian shelf discount.