TotalEnergies SE Q3 FY2025 earnings call

Patrick Pouyanné emphasized the consistency and resilience of TotalEnergies' 2-pillar strategy. Upstream production growth with new high-margin projects contributing to cash flow. Downstream efficiently captured high refining margins in Europe. Board authorized up to $1.5 billion share buyback for Q4 2025. Announced termination of ADR program with ordinary shares expected to trade on NYSE from December 8

Hydrocarbons: Third quarter hydrocarbons production exceeded expectations, growing by over 4%. Exploration and Production (E&P) segment: Adjusted net income of $2.2 billion in Q3 2025, up 10% quarter-over-quarter; cash flow at $4 billion, up 6% quarter-over-quarter. Integrated LNG: Sales of 10.4 million tons flat quarter-over-quarter; cash flow of $1.1 billion. Integrated Power: Net power generation increased 9% quarter-over-quarter to 12.6 terawatt hours; cash flow from operations at $0.6 billion. Downstream: Adjusted net operating income of $1.1 billion, up more than 30% quarter-over-quarter; cash flow of $1.7 billion, up 11% quarter-over-quarter

Upstream production anticipated to grow more than 4% year-on-year in Q4. Net investments expected to decrease, with disposal proceeds estimated at $2 billion in Q4. Full-year 2025 net investment guidance $17 billion to $17.5 billion. Gearing forecasted to decline to 15%-16% at year-end. Board increased first interim dividend close to 8% in euro and over 10% in dollars

French tax proposals with uncertain impact on share price. Russian sanctions impacting market and refining margins. EU sustainability rules and potential compliance issues

Q: Two questions, first on clarification on tax issues in France and second on 2026 cash flow growth.

A: Patrick Pouyanné discussed French tax proposals as political noise with fundamental rules, and on 2026 cash flow growth, said details would be in February with accretive effects from new production Q: First question on capturing refining margins and Port Arthur/Donges refineries progress, second on Russian volumes impact.

A: Patrick Pouyanné said refining margins higher than guided, Port Arthur turnaround done, Donges running, and Russian sanctions impacting market Q: First question on upstream margin mix and growth, second on cash flow use.

A: Patrick Pouyanné said Iraqi barrels accretive, cash flow over $60 in 2026 would go to balance sheet for deleveraging Q: First question on divestments in Nigeria and second on European competition letter.

A: Patrick Pouyanné said SPDC divestment in progress, European competition letter taken seriously by leaders but progress slow Q: First question on LNG FIDs and second on ADR buyback impact.

A: Patrick Pouyanné said FID decisions based on financing and project economics, ADR buyback not impacted by ADR conversion Q: First question on LNG trading competition and sustainability rules, second on EU rules compliance.

A: Patrick Pouyanné said LNG trading back to normal, EU sustainability rules with disproportionate sanctions risk Q: Question on refining utilization and 2026 outlook.

A: Patrick Pouyanné said 2026 refining utilization expected higher with fewer turnarounds Q: First question on marketing margin drivers, second on AI digitalization.

A: Patrick Pouyanné said Marketing and Services margin enhanced structurally, AI digitalization with large programs with Emerson and Cognite Q: First question on French electricity regulations and Iraq production, second on AI investment and Iraq barrier.

A: Patrick Pouyanné said French electricity regulations complex, Iraq production progressing with security and investment barriers Q: First question on AI investment and talent, second on Iraq production.

A: Patrick Pouyanné said AI investment $350 million, talent from India and internal, Iraq production progressing with long cycle Q: Questions on CapEx trajectory and production ramp.

A: Patrick Pouyanné said CapEx annual budget followed, reinvestment rate to decline by 20% by 2027 with lower CapEx and higher cash flow