TotalEnergies SE (TTE) Q2 2023 Earnings Call Transcript

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks:

Operator

Ladies and gentlemen, welcome to TotalEnergies Second Quarter and First Half 2023 Results Conference Call. I now hand over to Patrick Pouyanné, Chairman and CEO; and Jean-Pierre Sbraire, CFO, who will lead you through this call. Sir, please go ahead.

Patrick Pouyanné

So good morning, good afternoon, everybody, wherever you are, Patrick Pouyanné speaking. Before Jean-Pierre will go through the details of where could characterize a solid set of numbers. I would like to come back on the solution on the major investments that we have announced in this last quarter, which are a good illustration of our oil and gas and electricity strategy, which, in fact, are based on these 2 fundamental growth pillars on one side, growing our hydrocarbon based, mainly driven by LNG, but all of course, is our cash engine of today; and secondly, developing a profitable and integrated power business, which is key for the future cash and Gino the company. results, I should characterize them as good cash flows, good and good distribution -- strong distribution through buybacks. So continuity and strong and solid set of numbers, but Jean-Pierre will come back on it.

So first, on the first pillar, I would like to highlight some few important projects. The first one, of course, is our projects in Iraq, I -- you know that the company is going in Iraq 10 years ago, but it's not a matter of emotion. It's a matter of creating value, that be clear. And the DGIP, in fact, providing for us access to exactly the type of hydrocarbons we are looking for low cost, low emission, oil and gas because both projects is targeting both gas being, of course, a source of gas for shipment, but all at the rate we feel will have to increasing production of our tariff over our second objective, though, I would say, a breakthrough contractual breakthrough innovative contractual conditions compared to previous service contracts, which were signed by others in the past. This contract offers an attractive reward well balancing, of course, the Rite we are fully aware of that.

Second, of course, example, a very major example of the strategy in motion is -- our new projects in LNG projects in the U.S., the Rio Grande LNG projects, which we have announced in June and which now FIDs. You know that we are very committed to LNG. We think that is a growing demand. And that, of course, the U.S. position is very important because we have the lowest cost, a very low-cost source of gas there. And I would say this is a project on which is attractive because it's one of the most competitive LNG plant with $850 per ton. Violante project benefits from a very good location outside, I would say, the Louisiana probe area and more importantly, access to scale forces with no competition, limited site preparation.