Core Insights - TotalEnergies SE (TTE) reported third-quarter 2025 operating earnings of $1.77 per share, missing the Zacks Consensus Estimate of $1.81 by 2.2%, but improved 1.7% from the previous year's figure of $1.74 [1][9] - Total revenues for the third quarter were $48.69 billion, a decline of 6.4% from $52.02 billion year-over-year, yet exceeded the Zacks Consensus Estimate of $41.1 billion by 18.5% [2][9] Production and Revenue Details - Hydrocarbon production averaged 2,508 thousand barrels of oil equivalent per day, up 4.1% year-over-year, driven by start-ups and ramp-up from existing assets [3] - Liquid production averaged 1,553 thousand barrels per day, an increase of nearly 5.9% year-over-year [3] - Quarterly gas production was 5,182 thousand cubic feet per day, up 1.7% year-over-year [4] Pricing Information - The quarterly realized price for Brent decreased by 13.9% to $69.1 per barrel from $80.3 in the previous year [5] - Average realized liquid price was $66.5 per barrel, down 13.6% year-over-year [5] - Realized gas prices increased by 4.8% year-over-year to $5.5 per thousand British thermal units [5] - Realized LNG prices fell by 10.1% year-over-year to $8.91 per thousand Btu [5] Financial Highlights - Net power production was 12.6 terawatt hours, up 13.5% year-over-year, with nearly 65% generated from renewable sources [6] - Net operating income was $4.66 billion, a 0.5% increase year-over-year, attributed to strong performance in the Refining & Chemical segment [6] - Cash and cash equivalents as of September 30, 2025, were $23.41 billion, down from $25.84 billion at the end of 2024 [12] - Cash flow from operating activities in Q3 2025 was $8.35 billion, up 16.4% year-over-year [12] Segment Performance - Exploration & Production's operating earnings were $2.16 billion, down 12.6% from $2.48 billion year-over-year [10] - Integrated LNG's operating income was $0.85 billion, down 19.8% from $1.06 billion in the previous year [10] - Integrated Power's operating income increased by 17.7% to $571 million from $485 million year-over-year [10] - Refining & Chemicals' operating income surged by 185.1% to $687 million from $241 million in the prior-year quarter [10] - Marketing & Services' operating income rose by 4.4% to $380 million from $364 million in Q3 2024 [11] Future Outlook - TotalEnergies expects fourth-quarter 2025 production volumes to be between 2,525-2,575 Mboe/d [13] - The company anticipates investing between $17-$17.5 billion in 2025 and plans to buy back shares worth up to $1.5 billion in Q4 [13]

Core Viewpoint - TotalEnergies is poised to quickly restart its Mozambique LNG project, which has a budget of $20.5 billion [1] Group 1 - The CEO of TotalEnergies, Patrick Pouyanne, communicated the company's readiness to resume operations to investors [1]

Financial Data and Key Metrics Changes - The company reported a 4% increase in cash flow for Q3 2025 despite a drop in oil prices by more than $10 per barrel year on year [5][10] - Adjusted net income for Q3 2025 remained steady, with a 7% increase in cash flow compared to Q2 2025 and an 11% increase in adjusted net income [15][10] - Return on equity for the 12 months ending September 30th was 14.2%, with ROE close to 12.5% [15] Business Line Data and Key Metrics Changes - Hydrocarbon production increased by more than 4% year on year, marking the highest growth quarter so far in 2025 [15][16] - Exploration and Production (E&P) segment generated an adjusted net income of $2.2 billion, up 10% quarter over quarter, with cash flow growth of 6% [16] - Integrated LNG sales were flat quarter over quarter at 10.4 million tonnes, with cash flow of $1.1 billion in line with Q2 2025 [18] - Downstream adjusted net operating income increased by over 30% quarter over quarter to $1.1 billion, with cash flow of $1.7 billion up 11% [22][23] Market Data and Key Metrics Changes - Brent averaged $59 per barrel in Q3 2025, down from $68 per barrel in Q2 2025 [13] - European refining margin improved significantly to $63 per tonne compared to $35 per tonne in Q2 2025, an increase of nearly 80% [14] - Average LNG price decreased to $8.9 per million BTU, down 2% from Q2 2025 [13] Company Strategy and Development Direction - The company emphasizes a two-pillar strategy focusing on strong production growth in oil and gas and capital discipline [4] - The company plans to grow upstream production by 3% per year through 2030, with over 95% of this production already online or under construction [7][8] - The roadmap to transform ADRs into ordinary shares is expected to enhance trading and market presence in the U.S. [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining cash flow growth despite challenging market conditions, with expectations for continued production growth and reduced net investments [10][11] - The company anticipates a strong fourth quarter, with upstream production expected to grow more than 4% year on year [11] - Management highlighted the importance of maintaining a strong balance sheet and indicated that any excess cash flow would be directed towards deleveraging [45] Other Important Information - The company plans to execute $2 billion in divestments, including assets in Nigeria and Norway, with additional projects expected to close in the next year [54] - The company is actively engaging with European leaders regarding competitiveness and energy supply security [56] Q&A Session Summary Question: Clarification on tax issues in France and cash flow growth for 2026 - Management addressed concerns about potential new taxes on share buybacks, emphasizing that the company does not generate significant profits in France and expects reasonable outcomes from ongoing discussions [29][30] - For 2026, management anticipates production growth of over 3% and expects cash flow to grow alongside production, particularly from new projects coming online [32] Question: Ability to capture refining margins and impact of Russian sanctions - Management confirmed that refining margins have improved significantly, with current margins around $100 per tonne, and noted the impact of sanctions on Russian oil trading [36][39] Question: Upstream margin and cash flow allocation - Management indicated that any excess cash flow would be directed towards strengthening the balance sheet rather than increasing buybacks [45] Question: Divestments and European competitiveness letter - Management clarified that the $2 billion in divestments includes several projects, with ongoing discussions for additional sales expected to close next year [54][56]

Financial Data and Key Metrics Changes - The company reported a 4% increase in cash flow for Q3 2025 despite a year-on-year drop in oil prices by more than $10 per barrel, with adjusted net income holding steady [5][15] - Cash flow from operations increased by 7% compared to Q2 2025, and adjusted net income rose by 11% [15] - The return on equity for the 12 months ending September 30th was 14.2%, with ROE close to 12.5% [15] Business Line Data and Key Metrics Changes - Hydrocarbon production increased by more than 4% year-on-year, marking the highest growth quarter so far in 2025 [15][16] - Exploration and Production (E&P) segment generated an adjusted net income of $2.2 billion, up 10% quarter-over-quarter, with cash flow growth at $4 billion, up 6% [16] - Integrated LNG sales remained flat at 10.4 million tonnes quarter-over-quarter, with cash flow of $1.1 billion in line with the previous quarter [18] - Downstream adjusted net operating income was $1.1 billion, up more than 30% quarter-over-quarter, with cash flow of $1.7 billion, up 11% [22][23] Market Data and Key Metrics Changes - Brent crude averaged $59 per barrel in Q3, down from $68 in Q2, while European refining margins improved significantly to $63 per tonne compared to $35 per tonne in Q2 [13][14] - The average LNG price decreased to $8.9 per million BTU from $9.1 per million BTU [13] Company Strategy and Development Direction - The company emphasizes a two-pillar strategy focusing on strong production growth in oil and gas and capital discipline, which is translating into increased cash flow [4][5] - The company plans to grow upstream production by 3% per year through 2030, with over 95% of this production already online or under construction [7][8] - The roadmap to transform ADRs into ordinary shares is expected to enhance trading activity in the U.S. market [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining strong momentum for Q4 2025, with anticipated upstream production growth of over 4% year-on-year [11] - The company expects net investments to decrease quarter-over-quarter, with a forecasted gearing decline to 15%-16% by year-end [11][25] - Management highlighted the importance of maintaining a strong balance sheet to support future buybacks and investments [44] Other Important Information - The company plans to close divestments totaling $2 billion, including assets in Nigeria and Norway, with additional projects expected to be announced [52][54] - The company is actively engaging with European leaders regarding competitiveness and sustainability policies [56][57] Q&A Session Summary Question: Clarification on tax issues in France and cash flow growth for 2026 - Management addressed concerns about potential tax on share buybacks, emphasizing that the company does not generate significant profits in France and expects reasonable outcomes from ongoing discussions [29][30] - For 2026, management anticipates production growth of over 3% and expects cash flow to grow alongside new production coming online [32] Question: Ability to capture refining margins and impact of Russian sanctions - Management confirmed the ability to capture high refining margins, noting that recent sanctions on Russian oil are affecting market dynamics and refining margins are currently higher than previously guided [36][39] Question: Upstream margin and cash flow allocation - Management indicated that any excess cash flow would be directed towards strengthening the balance sheet rather than increasing buybacks [44] Question: Status of divestments and European competitiveness letter - Management clarified that the $2 billion in divestments does not include certain assets that were not closed due to conditions not being met, and they are in discussions with new buyers [52][54] - The letter regarding European competitiveness has prompted discussions with European commissioners, indicating a growing awareness of the issues raised [56][57]

Core Viewpoint - TotalEnergies' CEO stated that the French Parliament's tax plan is unfeasible, indicating potential challenges in the regulatory environment for the company [1] Group 1 - TotalEnergies plans to repurchase shares on the Paris Stock Exchange instead of the New York Stock Exchange, suggesting a strategic focus on its home market [1] - The budget for the Mozambique liquefied natural gas project remains approximately $20 billion, highlighting the company's significant investment in this area [1] - The company is working to reduce capital expenditures for the Papua New Guinea liquefied natural gas project, emphasizing the importance of cost management in a potentially weak market [1]

Market Overview - US stock index futures are all down, with Dow futures down 0.32%, S&P 500 futures down 0.35%, and Nasdaq futures down 0.55% [1] - European indices also show declines, with Germany's DAX down 0.18%, UK's FTSE 100 down 0.67%, France's CAC40 down 1.04%, and the Euro Stoxx 50 down 0.61% [2][3] - WTI crude oil prices fell by 0.86% to $59.96 per barrel, while Brent crude also dropped by 0.86% to $63.77 per barrel [4] Economic and Policy Updates - The meeting between Chinese President and US President Trump emphasized that economic and trade relations should be a stabilizing force rather than a point of conflict [5] - Federal Reserve Chairman Jerome Powell's comments on interest rate cuts have led to skepticism in the market, with the 10-year US Treasury yield holding steady at 4.08% after a previous spike [5] - Powell also stated that the current AI investment wave is fundamentally different from the internet bubble, highlighting that AI companies are rooted in profitability and real economic activity [6] Company Earnings and Performance - Roblox reported a record Q3 with 151.5 million daily active users, a 70% year-over-year increase, and bookings of $1.92 billion, exceeding analyst expectations [7] - Microsoft exceeded Q1 expectations with revenues of $77.7 billion, driven by a significant increase in capital expenditures related to AI [7] - Alphabet's Q3 revenue was $102.35 billion, up 16% year-over-year, with strong performance in its cloud division [8] - Meta's Q3 net profit fell 83% due to a one-time tax expense, despite a 26% increase in revenue to $51.24 billion [9] - Starbucks reported Q4 revenue of $9.57 billion, a 5.5% increase, with same-store sales returning to positive growth [10] - Shell's Q3 profit exceeded expectations, supported by strong oil and gas trading performance despite weak energy prices [11] - TotalEnergies' Q3 adjusted net profit fell 2.3% to $3.98 billion, meeting analyst expectations [12] - Stellantis reported a 13% increase in Q3 revenue to €37.2 billion, but issued a cost warning that affected stock performance [13] - Samsung Electronics' semiconductor division saw a 79% increase in Q3 operating profit, driven by AI demand [14] Future Outlook - OpenAI is reportedly preparing for an IPO that could value the company at $1 trillion, with plans to raise at least $60 billion [5] - Eli Lilly raised its full-year guidance due to strong sales from its weight loss and diabetes drugs, with Q3 sales reaching $17.6 billion [17] - Tesla plans to showcase its Cybercab model at the Shanghai International Import Expo in November [19]

Financial Data and Key Metrics Changes - The company reported a 4% increase in cash flow for Q3 2025 despite a drop in oil prices by more than $10 per barrel year on year [4][13] - Adjusted net income for Q3 2025 remained steady, with a 7% increase in cash flow compared to Q2 2025 and an 11% increase in adjusted net income [13][4] - Return on equity for the 12 months ending September 30th was 14.2%, with ROE close to 12.5% [13] Business Line Data and Key Metrics Changes - Exploration and Production (E&P) segment generated an adjusted net income of $2.2 billion, up 10% quarter over quarter, with cash flow growth of 6% [14] - Integrated LNG sales were flat quarter over quarter at 10.4 million tonnes, with cash flow of $1.1 billion in line with Q2 [16] - Downstream adjusted net operating income increased by more than 30% quarter over quarter to $1.1 billion, with cash flow of $1.7 billion, up 11% [20] Market Data and Key Metrics Changes - Brent averaged $59 per barrel in Q3, down from $68 in Q2, while European refining margins improved significantly to $63 per tonne compared to $35 in Q2 [12][13] - LNG prices decreased slightly, with the average LNG price at $8.9 per million BTU, down 2% from Q2 [12] Company Strategy and Development Direction - The company is focused on strong and secured production growth in oil and gas, capital discipline, and cash flow generation [3] - A roadmap to transform ADRs into ordinary shares is underway, expected to enhance trading and market presence in the U.S. [11] - The company anticipates a 3% annual growth in upstream production through 2030, with over 95% of production already online or under construction [6] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining strong cash flow and production growth despite challenging market conditions [4][10] - The company expects to maintain a strong momentum for Q4 2025, with anticipated net investments decreasing and gearing forecasted to decline to 15-16% by year-end [10][23] - Management highlighted the importance of capturing refining margins and adapting to market changes due to sanctions affecting Russian oil [36] Other Important Information - The Board of Directors approved an increase in the third interim dividend by close to 8% in euros and more than 10% in dollars compared to 2024 [9] - The company plans to execute a share buyback program of up to $1.5 billion in Q4 2025 [9] Q&A Session Summary Question: Clarification on tax issues in France and cash flow growth for 2026 - Management addressed concerns about potential tax on share buybacks, emphasizing that the company does not generate significant profits in France and expects reasonable outcomes from the ongoing debate [25][27] - For 2026, management anticipates production growth of over 3% and expects cash flow to grow alongside production, particularly from new projects coming online [29][30] Question: Ability to capture refining margins and impact of Russian sanctions - Management confirmed the ability to capture high refining margins, noting that recent sanctions on Russian oil are affecting market dynamics and refining margins are currently higher than previously guided [33][36] Question: Upstream margin and cash flow allocation - Management indicated that any excess cash flow would be directed towards strengthening the balance sheet rather than increasing buybacks [42][43] Question: Updates on divestments and European competitiveness - Management clarified that the $2 billion in divestments includes several ongoing projects and emphasized the importance of addressing European competitiveness issues with policymakers [48][55] Question: LNG market competitiveness and compliance with EU sustainability rules - Management acknowledged increased competition in the LNG market but emphasized that the company is well-positioned with its asset base and long-term contracts [69][75]

Core Insights - TotalEnergies reported third-quarter earnings that were essentially flat year-over-year, with adjusted net income at $4 billion, slightly down from $4.1 billion in the same period of 2024, but higher than the second-quarter adjusted net income of $3.6 billion [1][2] Financial Performance - Cash flow from operations (CFFO) increased to $7.1 billion, representing a 7% rise compared to the second quarter and a 4% increase from the previous year [2] - The Exploration & Production division achieved adjusted net operating income of $2.2 billion and cash flow of $4.0 billion in the third quarter, marking a 10% and 6% increase quarter-over-quarter, respectively [3] - In the downstream sector, adjusted net operating income rose to $1.1 billion and cash flow increased to $1.7 billion, nearly $500 million higher year-over-year, driven by improved refining margins in Europe [4] Refining Margins - Refining margins across TotalEnergies' operations surged by 78% in the third quarter compared to the second quarter, with margins remaining above $50 per ton at the beginning of the fourth quarter [4][5] - The increase in refining margins is attributed to disruptions in diesel flows and low inventory levels, as Europe seeks to secure middle distillate supply amid sanctions against Russian oil producers [5]

The terms "TotalEnergies", "TotalEnergies company" and "Company" in this exhibit are used to designate TotalEnergies SE and the consolidated entities directly or indirectly controlled by TotalEnergies SE. The financial and extra-financial information on pages 1-24 of this exhibit relating to TotalEnergies with respect to the third quarter of 2025 and nine months ended September 30, 2025 has been derived from TotalEnergies' unaudited consolidated balance sheets as of September 30, 2025, unaudited statements ...

Core Viewpoint - TotalEnergies (TTE.US) reported third-quarter profits in line with analyst expectations, driven by increased oil and gas production and stronger refining margins, despite a decline in prices [2] Financial Performance - Adjusted net profit for Q3 decreased by 2.3% to $3.98 billion, meeting average expectations [2] - Revenue for Q3 was $43.84 billion, down 7.6% year-on-year, and $510 million below expectations [2] - Cash flow from operating activities for Q3 was $8.349 billion, compared to $7.061 billion in the same period last year, aided by a $1.3 billion positive contribution from working capital [2] Production and Market Conditions - Oil and gas production increased by over 4% year-on-year, with total production at 2.51 million barrels of oil equivalent per day [2] - The company noted that lower oil prices compared to the previous year were due to concerns over oversupply from OPEC+ and other countries, alongside weak European petrochemical demand [2] Debt Management and Asset Disposals - TotalEnergies reduced its spending and share buyback plans to manage debt amid rising concerns from investors [2] - Net debt decreased from $26 billion at the end of June to $24.6 billion by the end of September [3] - The company expects total asset disposals of $2 billion in Q4, including divestitures in Nigeria, Norway, and renewable energy assets in North America and Greece [3][4] Future Outlook - The company anticipates maintaining its annual net investment guidance between $17 billion and $17.5 billion, based on internal investments and expected asset disposals [3] - Refining margins are expected to remain above $50 per ton in Q4 2025, driven by low diesel supply and inventory levels [3] - The debt ratio at the end of Q3 was 17.3%, projected to decrease to 15% to 16% by year-end [4]