TotalEnergies SE (NYSE:TTE) Q3 2023 Earnings Conference Call October 26, 2023 7:30 AM ET
Company Participants
Patrick Pouyanne - Chairman, CEO & President
Jean-Pierre Sbraire - CFO
Conference Call Participants
Oswald Clint - Sanford C. Bernstein & Co.
Malek Christyan - JPMorgan Chase & Co.
Lydia Rainforth - Barclays Bank
Henri Patricot - UBS
Irene Himona - Societe Generale
Alastair Syme - Citigroup
Lucas Herrmann - BNP Paribas Exane
Kim Fustier - HSBC
Jean-Luc Romain - CIC Market Solutions
Biraj Borkhataria - RBC Capital Markets
Martijn Rats - Morgan Stanley
Jason Gabelman - TD Cowen
Bertrand Hodee - Kepler Cheuvreux
Paul Cheng - Scotiabank
Michele Vigna - Goldman Sachs Group
Alessandro Pozzi - Mediobanca
Operator
Ladies and gentlemen, welcome to the TotalEnergies Third Quarter 2023 Results Conference Call.
I will now hand over to Patrick Pouyanne, Chief Executive Officer; and Jean-Pierre Sbraire, CFO, who will lead you through this call. Please go ahead, gentlemen.
Patrick Pouyanne
Hello, everybody, everyone. Good afternoon. So -- good morning if you are in the U.S. So today, we will present with Jean-Pierre, our third quarter results, which once again demonstrates the relevance of our strategy. Indeed, our transition strategy is incurred on both pillars, as we explained to you last September. On oil and gas on 1 side, integrated power on the other side. And it allows us to fully leverage upside in supportive energy environments like the 1 we are experiencing today.
As explained in our total strategy and outlook presentation end of September, we have stayed the course, and this quarter illustrates all the strategies in motion in all of business segments. Oil and gas first, as you know, we have developed organically a deep portfolio of projects. But our low cost and low emissions, which will offer a growth production of 2% to 3% per year for the next 5 years. Thanks to this strategy, this quarter, we delivered a 5% increase of production compared to Q3 '22, as several new projects have been put into production like Mero 1 in Brazil, Absheron in Azerbaijan, Block 10 in Oman and Ratawi in Iraq. And they are more than offsetting our natural decline of 3% per year. The downstream is also contributing to this oil and gas business, in particular, thanks to our capacity to combine an excellent utilization rate of our refineries with very robust refining margins.
On the LNG side, the recent price volatility in European gas markets, price spiking as much as 28% in a single day during the quarter is the most obvious example of real-time market intention. We capture value along the entire value chain and maximize the margins on both our dominant U.S. and European positions. We are the largest U.S. LNG exposures, and we have reinforced this positions this quarter with the sanction of Rio Grande LNG in Texas. And the largest, we are also the largest European oil and gas capacity holders. And there again, we are reinforcing this position this quarter with the commissioning of our second FSRU in France after the 1 in Germany earlier this year.