Maurizio Carulli

Maurizio Carulli asked if TotalEnergies has a strategic cap for the long-term expansion of its electricity business, including renewables, given its successful growth, profitability, and return on capital compared to traditional utilities.

Answer

Chairman and CEO Patrick Pouyanné stated that the question of a strategic cap beyond 2030 for the electricity business is a current debate for the board, to be discussed at the next strategic seminar. He noted increased confidence in the model after five years and highlighted that the business becoming free cash flow positive (expected by 2026 or 2027) is a turning point that will influence future appetite for growth. Pouyanné also observed a strong integration between gas and power, with the EPH transaction being well-received due to its gas-to-power component. He suggested that evolving regulatory frameworks in Europe, moving away from zero-risk CFD models, could also favor larger, more competitive players.

Maurizio Carulli (Quilter Cheviot Investment Management) asked if TotalEnergies has a strategic cap for the long-term expansion of its electricity business, given its strong growth, profitability, and free cash flow generation.

Answer

Patrick Pouyanné, Chairman and CEO of TotalEnergies, stated that there is currently no strategic cap, and the topic will be debated at the next strategic seminar. He noted increasing confidence in the model, especially as the business approaches free cash flow positive status (potentially 2026, definitely 2027), and highlighted the strong integration between gas and power as a key value driver.

Maurizio Carulli from Quilter Cheviot Investment Management asked about the impact of recent board appointments, including Albert Manifold, a former Shell CFO, and a former Devon CEO, on senior management's day-to-day business.

Answer

Carol Howle, Interim Chief Executive Officer, explained that the board provides oversight and challenges management on strategic milestones, portfolio, and competitiveness, with diverse expertise generating ideation. Kate Thomson, Chief Financial Officer, welcomed the freshness and different style of Albert Manifold, noting improved boardroom conversations and the value of experienced members like Dave Hager (upstream) and Simon Henry (finance), and Melody Meyer (safety). Gordon Birrell, Executive Vice President, Production and Operations, specifically praised Dave Hager and Simon Henry for challenging oil and gas investments and Melody Meyer for safety.

Maurizio Carulli from Quilter Cheviot Investment Management asked how the recent appointments of Albert Manifold (Chairman), a former Shell CFO, and a former Devon CEO to BP's board have influenced senior management's day-to-day business.

Answer

Carol Howle, Interim CEO, explained that the board provides oversight and challenges the leadership team on strategic milestones, portfolio, competitor insights, and continuous improvement. Kate Thomson, Chief Financial Officer, welcomed the fresh perspectives and supportive challenge from new board members, particularly the ex-CFOs and Dave Hager's deep upstream experience. Gordon Birrell, Executive Vice President of Production and Operations, highlighted the tremendous challenge from experienced oil and gas board members like Dave Hager and Simon Henry, and Melody Meyer's impact on safety.

Maurizio Carulli asked for more details on the drivers behind the 20% increase in Castrol's earnings and sought additional information on BP's recent strategic investment in electronic cooling solutions.

Answer

Kate Thomson (CFO, BP) attributed Castrol's 20% earnings increase to a deliberate strategy of cost competitiveness, volume growth, and favorable fluctuations in base oil and additives. Murray Auchincloss (CEO, BP) described the electronic cooling solutions as a promising long-term growth opportunity for data centers, currently in trial with commercial partners.

Maurizio Carulli asked for more color on the 20% increase in Castrol earnings and its drivers, and details on BP's recent strategic investment in electronic cooling solutions.

Answer

Kate Thomson (CFO, BP) attributed Castrol's 20% earnings increase to Michelle's deliberate strategy, resulting in nine consecutive quarters of progress, improved cost competitiveness, and systematic volume growth. She also noted the tapering of fluctuations in base oil and additives. Murray Auchincloss (CEO, BP) described the liquid cooling for data centers as an interesting, long-term growth opportunity, with a couple of commercially sensitive deals signed and trials underway in a competitive space.