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TotalEnergies Outlines Strategy Focusing on Shareholders Returns, Investments — Update

By Giulia Petroni

 

TotalEnergies SE said Wednesday that it plans to allocate 35% to 40% of its cash flow to shareholders in the coming years and has introduced a special dividend for 2022 as part of its new strategy.

The French oil-and-gas major said it will distribute a special interim dividend of 1 euro (96 U.S. cents) a share at the end of the year, in addition to maintaining a $7 billion share buyback and the 5% increase in quarterly interim dividends already implemented.

The company expects to have a strong balance sheet by year end, with gearing down to around 5% and structural cash flow growth supporting dividend growth over the next five years, it said.

Excluding Russia, underlying cash flow is expected to grow by $4 billion over the coming five years, based on price assumptions of $50 a barrel for oil and $8 per million British thermal units for European gas. The company said it would generate an additional cash flow of more than $3 billion for every $10/b increase in oil price.

TotalEnergies said net investments will be between $14 billion and $18 billion a year over the 2022-25 period, a third of which will be allocated toward green energies and carbon footprint reduction programs, while the remaining two thirds will be destined to growing the liquefied natural gas business and developing other oil projects to meet demand.

LNG production is expected to grow by 40% from 2021 to 2030 and LNG sales by 3% a year through 2027 without contribution from Russia, according to TotalEnergies. The company said it is looking particularly at the U.S. and Qatar as it seeks to diversify away from Russia.

 

Write to Giulia Petroni at giulia.petroni@wsj.com

 

(END) Dow Jones Newswires

September 28, 2022 11:06 ET (15:06 GMT)

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