TotalEnergies sets dividend growth target, announces buybacks

TotalEnergies SE, the French energy company, has unveiled a dividend growth policy and announced a $2.5 billion share buyback for the fourth quarter of 2026. In a press release, the company highlighted its strategy and outlook, demonstrating its commitment to shareholder returns. TotalEnergies aims to increase its dividend by more than 5% annually through 2030 and expects its gearing ratio to drop below 10% by the end of the year.

The company's production targets include a 4% annual growth in oil, gas, and electricity output through 2030, with free cash flow projected to rise by approximately $10 billion from 2025 to 2030. TotalEnergies anticipates reaching net investments between $14 billion and $17 billion annually between 2027 and 2032, while maintaining a plateau of around 3 million barrels of oil equivalent per day in oil and gas production through 2035.

Electricity generation is expected to grow at an annual rate of 20%, reaching 100-120 terawatt-hours per year by 2030, which accounts for about 20% of the company's energy mix. The Integrated Power segment of TotalEnergies is projected to achieve cash flow breakeven by 2026 and become profitable by 2027. The company has ongoing projects in various countries, including Namibia, Nigeria, Libya, Malaysia, Mozambique, and Papua New Guinea.