Totalenergies Ep Danmark A/S

Ledelsesberetning

Tyra Redevelopment The redevelopment of Tyra was completed in 2024. It was a major project combining the decommissioning of old facilities before installing the new facilities. The redevelopment of the Tyra facilities was necessary, due to the natural subsidence of the reservoir after many years of production. The redevelopment of Tyra included three main elements: decommissioning and recycling of the old Tyra platforms, where the topsides were removed, and recycling and extending the current platform legs with 13 meters, on which new topsides, a completely new processing module and a new accommodation platform were installed. After 5 years of redevelopment, the start-up of Tyra in March 2024 marks a new era of enhanced production capacity from a top modern facility emitting 30% less CO2 compared to the former facilities and significantly contributing to the energy security and independence in Denmark and Europe, through the export pipelines to Nybro and Den Helder. The ramp-up of Tyra is progressing, with gas flow from three out of six fields already re-established. Due to operational challenges and weather dependent activities, the ramp-up is, however, taking slightly longer than expected. Full production is anticipated in the second half of 2025. Another major achievement for TotalEnergies EP Danmark during 2024 was the successful outcome of the Harald East Middle Jurassic (HEMJ-1X) exploration well. The well spudded in June 2024 and discovered additional gas resources in the Harald field. On 6 December 2024 the well was completed and production through the existing Harald and Tyra facilities started. The success of the HEMJ-1X well demonstrated the Company's technical expertise and innovative approach in overcoming the challenges of mature field development. During the year, TotalEnergies EP Danmark also completed two Well and Reservoir Optimization Management-projects (WROM I and II) with a focus on enhancing the performance and extending the life of existing wells through advanced intervention techniques and optimization strategies. Through the application of advanced intervention techniques, WROM I and II enhanced the well productivity by an average of 30%, resulting in a cumulative increase of 1 million barrels of oil equivalent over the year. As a leading company in the energy sector, TotalEnergies EP Danmark remains committed to providing Denmark with reliable oil and gas supply, produced efficiently and with respect for the environment and local communities and contributing to the transition to a more sustainable energy landscape. CCS – Carbon Capture Storage Bifrost Project Bifrost is the flagship CCS initiative aimed at transforming Denmark into a European hub for CO” storage. Led by TotalEnergies, this project focuses on developing CO2 pipeline infrastructure and transportation solutions with partners to store more than 5 MTPA of CO2 by 2030 in depleted oil and gas reservoirs and saline aquifers in the Danish North Sea. In February 2023, the first Danish tender for CO2 storage licensing concluded with award to two CCS exploration licenses to TEPDK operator (80%) and Nordsøfonden (20%). The licenses cover the depleted Harald fields and a nearby Oligocene saline aquifer, Dagny. The work program on the Dagny license includes a feasibility study, a 3D seismic survey and the drilling of one appraisal well, Dagny-1, scheduled for 2026. For the Harald license, the work program includes the studies led by TotalEnergies as part of a two-year study project funded by the EUDP – Energy Technology Development and Demonstration Program. This project has been carried out with the DUC partners, Ørsted and DTU and aims to derisk a CCS value chain to the Harald fields. These studies and the EUDP partnerships ended in October 2024. TotalEnergies submitted an application for an offshore CCS License in January 2025. The thaward of the 4 tender is expected by mid-2025. The effect in the financial statements of TEPDK is immaterial. Financial review Financial performance for the year The 2024 result shows a profit after tax of USD 810 million, which is higher than the profit of USD 251 million for 2023, exceeding the expectations to the 2024 result of between USD 160 million and USD 180 million. The growth in profit compared to expectations is mainly impacted by dividends. The profit before financial items and tax was lower compared to 2023 due to a decrease in the average oil price to USD 81 per barrel compared to USD 82 per barrel for 2023 and reduced production from Tyra. Tyra delivered first gas in March 2024 which increased the production costs, but did not achieve full production resulting in a negative impact on the result. In 2024, net income from subsidiaries (dividends less impairments) amounted to USD 483 million compared to USD -28 million in 2023, which positively affected the 2024 results. Uncertainty regarding recognition and measurement There is no uncertainty regarding recognition and measurement in the Financial Statements. Unusual events No unusual events occurred within the financial year, except for the matter described in the note Special items in the Financial Statements. Knowledge resources TotalEnergies EP Danmark A/S leverages a diverse range of knowledge resources, including employee expertise, proprietary technologies, and intellectual property. These resources play a crucial role in driving innovation and maintaining our competitive edge. Over the past year, we have invested significantly in training programs and research and development activities to enhance our knowledge base and improve operational efficiency Impact on external environment The management does not foresee an impact on the external environment, except for what is normal for this kind of business. Key figures Key figures for TotalEnergies EP Danmark are as follows: USD million 2024 2023 2022 2021 2020 Income statement: Revenue 544 572 946 518 271 Profit before financial items and tax 301 374 660 288 (78) Financial items, net 581 43 313 92 230 Profit for the year after tax 810 251 540 282 297 Balance sheet: Total assets 5,710 4,864 4,739 4,262 5,123 Investments in property, plant and equipment 1,840 1,627 1,471 1,394 1,130 Equity 4,536 3,727 3,476 2,936 2,653 Profit margin 55% 65% 70% 56% (29%) Solvency ratio 79% 77% 73% 69% 52% Return on equity 19% 11% 28% 13% 6% For definitions, see under accounting policies. Outlook for 2025 TotalEnergies EP Danmark expects to achieve a profit after tax but before dividends and impairments, if any, in 2025 of between USD 150 million and USD 175 million and a daily production of 58 thousand barrels of oil equivalent (boe) per day in 2025. During 2024 the oil price remained at a rather stable level, displaying an average price of close to USD 80 per barrel for the year. For 2025 the oil price has demonstrated its volatility with an average around USD 70 per barrel. The development of the oil price for the remaining part of 2025 will, naturally, depend on the development in the global market situation, and potential initiatives from OPEC and other major producing countries. With the current oil and gas price level, the turnover is forecasted in the range of USD 0.8 billion to USD 0.9 billion given the lower forecasted oil prices. Management will continue to closely monitor the development in market conditions and expected earnings during the coming year. Activities in subsidiaries During 2024, the Company’s subsidiary structure was changed as part of the planned international alignment of the legacy Maersk Oil activities into the TotalEnergies group of companies. TotalEnergies in Denmark has entered the offshore wind market through the partnership agreement with European Energy for the acquisition of two offshore wind developments, 85% of the Jammerland Bay project (240 MW) and 72.2% of Lillebælt South (165 MW). The project closing took place in December 2024 when both projects obtained the establishment permits from the Danish authorities. The Company’s subsidiary TotalEnergies EP Algerie Berkine A/S ceased its activities in 2023, and the process of the subsidiary liquidation has started, the subsidiary is expected to be liquidated in year 2025. The changes are disclosed in note 10 within the annual report. Production In 2024, TotalEnergies EP Danmark’s production share of crude oil from the DUC fields in the Danish part of the North Sea reached an average of 15,300 barrels of oil equivalent per day (kboe/d) (2023: 16.2 kboe/d). The Company’s share of the gas production in 2024 was 7.9 kboe/d (2023: 6.9 kboe/d). Both oil and gas production in 2024 have been significantly impacted by the shutdown for the Tyra Redevelopment since 2019. Development In Denmark, the DUC partnership, of which the Company holds 43.2% ownership has continued the redevelopment of the Tyra field. The DUC investment cost for the modification to existing facilities and construction of new facilities (CAPEX) is estimated at approx.DKK 24.3bn (USD 3.6bn), and the removal and decommissioning of current facilities (ABEX) is estimated at approx. DKK 3.1bn (USD 0.5bn). The redeveloped Tyra field is expected to deliver approximately 70 thousand boe/d at peak, and it is estimated that the redevelopment can enable the production of more than 200 million boe in total. Approximately 2/3 of the production is expected to be gas and 1/3 to be oil. Exploration and R&D TotalEnergies has been actively involved in R&D in Denmark, since the acquisition of Mærsk Oil. Initially focused on sustainable oil and gas production, the company has expanded its efforts to clean energy through DTEC. DTEC test site was established to develop renewable energy technology, including a hybrid power plant test facility inaugurated in October 2024 DUC ten-year R&D sponsorship at Danish Offshore Technology Center by end of 2024, with ongoing reporting and data transfer is expected to continue until mid-2025. Focus on CO2 storage and Direct Air Capture through partnerships involving universities, companies and Danish public funding. Exploration studies continue in the North Sea for 2025. The Company completed the drilling of the HEMJ well in 2024, with no plans to complete any exploration wells in 2025. Risks and uncertainties TotalEnergies EP Danmark is subject to a variety of risks, which derive from the nature of oil and gas production. The Company’s future depends on success in more efficient production methods to ensure profitable production till 2042, as well as developing long term CCS and renewable solutions. Strategic, operational, compliance, financial and emerging risks are monitored through a structured approach, including systematic identification, assessment and mitigation of the potential risks. The Total Recordable Incident Frequency (TRIF) for 2024 was 1.2 per million working hours compared to 2.1 per million working hours in 2023. TotalEnergies EP Danmark is very focused on eliminating incidents and has set a target of zero incidents. A major accident or oil spill remains an inherent risk in the operations. A high severity incident would first and foremost present a risk to our employees as well as potentially to the marine environment, wildlife and local communities. Additionally, it could result in large-scale impact on assets, liquidity and reputation and put our licence to operate at risk. TotalEnergies EP Danmark is proactively building and supporting incident free operations to mitigate this risk. Financial risk - management hereof and eg operating risks, currency risks, interest rate risks, credit risks, capital resources, TotalEnergies EP Denmark’s activities expose it to various financial risks, such as currency risks, interest risk, credit risk and liquidity risk. The Company does not use financial instruments for hedging nor derivative purposes. Interest rate risk: The company is self-financed and has neither loans from third parties nor from internal financing. Due to positive Cash position the company is fully capable to meet its short-term as well as its long-term financial obligations and to manage the cash flows effectively. Fluctuations in interest rates may impact the financial performance particularly relating to investment income. Foreign Exchange Risk: The Currency risk is due to income being mainly denominated in USD and EUR, while expenses are incurred mainly in USD, EUR and DKK, but also a wide range of other currencies. Risk Management Strategies. Management will continuously monitor the development in market conditions via strict reporting's on financial risk applying ongoing management and oversight of budgets, project plans for both short and long term. TotalEnergies EP Danmark A/S CVR-No. 22757318 Annual Report 2024 The market risk: The market risk is the risk of changes in market prices for oil and gas, such as exchange rate, interest, and the world situation. The management don’t foresee financial risk in either currency (EUR), interest rate, Credit, liquidity nor Capital resources. Requirements according to the Danish Financial Statements Act, section 99a have been fulfilled, reference to reporting for parent company TotalEnergies SE. External environment TotalEnergies is amongst the world leaders in implementing cutting edge technologies to reduce greenhouse gas and has set ambitious global targets to measure that. TotalEnergies EP Danmark has taken a leading role in this work. Globally, TotalEnergies invests in renewable power, expands its capacity within low-carbon gases like hydrogen and biogas, secures a strong position within natural gas, and develops carbon storage facilities. During 2024 progress was made regarding biodiversity efforts within Denmark. TotalEnergies EP Danmark continued to support various research initiatives by universities and research institutes around our offshore facilities and prepared the first detailed Biodiversity Action Plan. Furthermore, the Company seeks to make use of environmentally friendly and energy efficient solutions to reduce the negative impact on the environment. totalenergies_sustainability-climate-2025-progress-report_2025_en.pdf Consequently, according to the Danish Companies Act, the Company’s board and other management level are considered to have equal representation of genders among the Company’s shareholder-appointed board members and among the other management level. Requirements according to the Danish Financial Statements Act, section 99b have been fulfilled. Subsequent events Reference is made to note 18 in the Financial Statements. Management’s Statement The Board of Directors and Executive Board have today discussed and approved the annual report of TotalEnergies EP Danmark A/S for 2024. The annual report for 2024 of the Company has been prepared in accordance with the Danish Financial Statements Act and, in our opinion, gives a true and fair view of the Company’s assets, liabilities and the financial position at 31 December 2024 and of the results of the Company’s operations for the financial year 2024. In our opinion, the Management’s Review includes a fair review of the development in and the result of the Company’s operations and financial conditions, the result for the year and financial position. We recommend that the annual report be approved at the Annual General Meeting.

Beskrivelse af virksomhedens væsentligste aktiviteter

TotalEnergies EP Danmark A/S (the “Company” or “TotalEnergies EP Danmark”) is a wholly owned subsidiary of TotalEnergies SE following the acquisition of Maersk Oil, operating the Danish Underground Consortium (DUC) in the Danish North Sea, where production is supported by 49 platforms across 15 oil and gas fields.In addition, the Company serves as operator of several CCS licences in Denmark and holds via subsidiaries various exploration and production activities outside Denmark. Oil was first discovered in the Danish sector of the North Sea in 1967, with commercial production commencing in 1972. Today, TotalEnergies EP Danmark produces oil and gas from 15 fields, significantly contributing to Denmark's economy, energy supply, employment, and net export of oil and gas.