TotalEnergies raises buybacks and pledges higher dividends as oil trades around $100
TotalEnergies will buy back $2.5 billion (€2.2bn) of its own shares in the fourth quarter, up from $1.5 billion (€1.3bn) authorised for the third, and raise its dividend by more than 5% a year through 2030, as high oil prices boost the French energy giant’s earnings.
French oil and gas giant TotalEnergies is returning more cash to investors by raising buybacks and pledging higher dividends. On Monday, the company's board announced a $2.5 billion buyback for the last quarter of 2026 and between $2 billion and $2.5 billion for the first quarter of 2027. This is a significant increase from the $1.5 billion authorized for the third quarter of 2026.
Additionally, TotalEnergies has adopted a policy to increase the dividend by more than 5% annually from 2026 to 2030. The company aims to return at least 40% of cash flow to shareholders, a goal in line with its strategy of boosting earnings. With Brent crude averaging $103.8 a barrel in the second quarter, TotalEnergies posted adjusted net income of $6 billion.
The company expects its gearing ratio, a measure of debt financing, to drop below 10% by the end of this year, down from 13.1% at the end of June. TotalEnergies also plans to grow energy production, including oil, gas, and electricity, by 4% annually through 2030, with oil and gas production rising by more than 3% annually between 2025 and 2030.
The company projects free cash flow in 2030 to be $10 billion higher than in 2025, representing an increase of more than $4 per share. TotalEnergies holds projects in several countries, along with existing reserves, to maintain oil and gas output at around 3 million barrels of oil equivalent per day through 2035. The company also aims to grow oil and gas production by 2% to 3% annually from 2030 to 2035, leveraging exploration and discovered resources.
Electricity generation is expected to grow by over 20% annually, reaching 100 to 120 terawatt-hours by 2030. TotalEnergies' Integrated Power division, which covers renewables and electricity, is expected to break even on free cash flow this year and become profitable in 2027. By 2035, electricity is projected to make up a quarter of the company's energy mix.
To support its expansion, TotalEnergies anticipates making net investments of $14 billion to $17 billion annually from 2027 to 2032. The company reaffirmed its commitment to halving direct and energy-related emissions from its oil and gas activities by 2030, compared to 2015 levels.
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