Financial Data and Key Metrics Changes - Pro forma adjusted EBIT for Q3 2025 was €3 billion, a 12% increase from Q2 and a 6% decrease year-on-year in U.S. dollar terms despite a 14% fall in crude oil prices [6][10] - Adjusted net income was €1.25 billion, effectively in line year-on-year, despite a $10 per barrel fall in crude price and a weaker U.S. dollar [9][10] - Cash flow from operations reflected efficient conversion of earnings into cash, with a working capital draw in Q3 [10][11] Business Line Data and Key Metrics Changes - Upstream production reached 1.76 million barrels per day, up 6% year-on-year, with a pro forma EBIT of €2.6 billion [7][9] - Transition activities reported €233 million of pro forma EBIT, with a 26% year-on-year increase [9] - GGP reported €279 million in pro forma EBIT, maintaining focus on maximizing value and optimizing the gas and LNG portfolio [8][9] Market Data and Key Metrics Changes - The company expects full-year production to be between 1.71 and 1.72 million barrels per day, a 3% underlying increase versus 2024 [11] - The LNG portfolio aims for a target of 20 million tons per annum, with projects in Mozambique, Congo, and Argentina [26][27] Company Strategy and Development Direction - The company is focused on a dual exploration strategy, enhancing its upstream capabilities while also investing in transition activities [14] - Significant progress in floating LNG technology, with Coral North and other projects reinforcing leadership in this area [4][26][77] - The company is committed to tripling biofuel production capacity by 2030, with ongoing investments in biorefineries [6][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to manage downturns and maintain growth, citing a strong underlying business performance [13][35] - The outlook for production remains positive, with expectations of continued growth driven by new projects and operational efficiencies [11][26] - Management highlighted the importance of maintaining a diversified income mix and efficient tax rate as part of the overall strategy [10][46] Other Important Information - The company announced an increase in share buyback to €1.8 billion, reflecting confidence in financial performance and a commitment to shareholder value [13][35] - The company is in advanced negotiations for a joint venture with Petronas, expected to contribute to production growth [30] Q&A Session Summary Question: Strong production figures in upstream - Management attributed the strong production figures to new startups and ramp-ups in various regions, including Norway and Angola [19] Question: Chemicals performance and future expectations - Management indicated that benefits from the shutdown of chemical plants would materialize in 2025, with significant improvements expected in 2026 [21][22] Question: Outlook for production in coming quarters - Management confirmed a strong exit rate and visibility on high-quality projects, expecting production to remain robust [26] Question: Buyback decision amidst declining oil prices - Management explained that the decision to increase buyback was based on strong operational performance and confidence in managing future downturns [35] Question: Update on Namibia gas project - Management reported successful drilling results in Namibia, indicating potential for future development [36] Question: Impact of legislation on Argentine LNG project - Management stated that the RIGI legislation is an enabler for LNG exports, but investments in Argentina began prior to this legislation [40] Question: Biofuels market outlook and SAF demand - Management highlighted that demand for sustainable aviation fuel (SAF) is expected to grow due to regulatory mandates and market dynamics [58][61] Question: Working capital movement and future expectations - Management anticipated limited drawdown in working capital for Q4, with a positive outlook for the full year [90]