TotalEnergies rises after dividend, buyback plans and output target through 2035

Investing.com -- Shares in TotalEnergies SE (EPA: TTEF) rose on Monday after the French oil major said it plans to increase its dividend by more than 5% a year through 2030, while maintaining oil and gas production at around 3 million barrels of oil equivalent per day through 2035.

The board approved a dividend policy for 2026-2030 targeting annual dividend growth of more than 5%. It also confirmed plans to return at least 40% of cash flow to shareholders while reducing leverage, with a target gearing ratio below 10%.

With gearing expected to fall below 10% by the end of 2026, the board authorised $2.5 billion of share buybacks for the fourth quarter of 2026 and between $2 billion and $2.5 billion for the first quarter of 2027.

The buyback plans add to the company’s shareholder-return commitments as it seeks to reduce leverage while funding production and power investments.

TotalEnergies said it expects to keep oil and gas production at around 3 million boepd through 2035, supported by projects in Namibia, Nigeria, Libya, Malaysia, Mozambique and Papua New Guinea. The company also cited a reserves life index of more than 12 years.

For 2025-2030, oil and gas production is expected to grow by more than 3% a year on average, driven by projects already under development. The company maintained its broader target for energy production to grow by about 4% annually through 2030.

Electricity generation is expected to grow by more than 20% a year to reach 100-120 terawatt hours by 2030, which would account for about 20% of the company’s energy mix.

TotalEnergies expects its Integrated Power business to become free-cash-flow positive in 2027, after reaching balance in 2026, and to deliver a 12% return on average capital employed by 2030.

The company said higher production would increase free cash flow by about $10 billion between 2025 and 2030, based on the same commodity price assumptions. That would represent an increase of more than $4 per share, according to the company.

Beyond 2030, TotalEnergies targets net power generation growth of 10-12 TWh a year through 2035. Electricity is expected to account for about 25% of its energy mix by then, supported by renewables, gas-to-power projects and battery storage in the United States and Europe.

The company plans net investments of $14-17 billion a year between 2027 and 2032 to support its production and power expansion.

TotalEnergies also maintained its target of cutting Scope 1 and 2 emissions from its oil and gas operations by 50% by 2030 from 2015 levels and reducing methane emissions by 80% from 2020 levels.

The company said dividend payments beyond the interim dividend due in January 2027 had not been approved by the board or shareholders. Future dividend amounts and payment dates therefore remain subject to board approval.

Original Article

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