At the head of TotalEnergies for ten years, Patrick Pouyanné is used to justifying himself. During the general meeting which was held this afternoon in La Défense, the CEO took part in this exercise for three more hours. Justify yourself for studying a full listing in New York, for still investing in oil and gas, for not investing more in renewable energies… and even for the waiting time necessary to access the auditorium where the annual meeting of shareholders was held, due to heavy security measures.
The leader also took the opportunity to thank the “public authorities [qui] mobilized more than 200 police officers to ensure the security of the general assembly”, after the clashes of past years. “I have excellent relations with the Minister of the Interior and the entire government, he said. he smiled. We have become beloved in France. From time to time you have to do a little provocation, but it works!”
More flattering valuation in New York
The provocation is precisely this stone thrown into the pond during an interview given to Bloomberg at the end of April. Patrick Pouyanné then announced the mission assigned by his board of directors: to study the possibility of a primary listing on Wall Street. Often criticized, TotalEnergies became overnight the precious national jewel that we do not want to part with under any circumstances. This project, technical on paper, is motivated by the appetite of American investors for the title, while Europeans tend to turn away from it in the name of environmental considerations.
And this despite the 5 billion invested by the group in low-carbon energies. But this desire for elsewhere is also explained by the more flattering valuation of oil groups when they are traded on the New York markets. “Chevron’s income statements and balance sheet are exactly the same as ours,” recalled Patrick Pouyanné, noting that the American’s valuation was 1.5 times higher than that of the Frenchman.
The battle is underway in the upper echelons. The emotion of Bruno Le Maire in Bercy was followed by the indignation of the President of the Republic in the pages of L’Express: “I cannot believe that he is moving away from France.” A storm in a glass of water ? Patrick Pouyanné has since worked to deflate the controversy, first in an interview with Figaro published last night. “It’s a translation error. primary listing In our mind, this is not a “main listing”, it is the listing of TotalEnergies shares, in New York as in Paris.”
In his speech to shareholders, the CEO, whose mandate was renewed with a 75% vote in favor, reiterated his plan for “transatlantic cross listing”, in other words a parallel, equivalent listing in Paris and New York. But the nuance seems thin. Because if the French group carries out its project, it is a safe bet that the transaction volumes on Wall Street will quickly become higher than in Paris, with American shareholders preferring to play at home. In which case New York would, in fact, become the main place.
Would TotalEnergies stay in the Cac 40?
“There is no question of leaving France, insisted Patrick Pouyanné this afternoon, referring to the Parisian listing as well as to the head office. Our attachment is real”. A full and complete listing in New York would therefore be without consequence seen from France? After all, as long as the head office is in Paris, the company remains French, pays its tribute to the French State (more than 2 billion euros in taxes and social security contributions) and savers can record the action in their PEA.
At Amundi, one of the first shareholders of the oil group, we nevertheless have questions. “Would the scientific committee leave TotalEnergies within the Cac 40?” This discreet group of experts decides on entries and exits in the flagship Parisian index, based on their market capitalization, the volumes traded on the stock and the sector of activity. But the oil group, heavyweight in the Cac 40, still has room to spare. “Assuming that the volumes in Paris were reduced by half, TotalEnergies would still be in the top 10, it seems impossible to see it excluded from the Cac 40, estimates Thierry Le Clercq, general manager of the management company AlphaJet. The board’s reasoning is completely legitimate. It also allows us to send a message of discontent.”
The politicians are outraged, the management defends itself. The employees can only rub their hands. Owners of more than 8% of the capital of their company – i.e. an invested amount of 11 billion euros, a record in Europe – they were allocated 100 free shares this year, to mark the group’s centenary. An increase in the share price in the event of an American listing would be the cherry on the cake.
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