TotalEnergies raises buybacks and pledges higher dividends as oil trades around $100

TotalEnergies Raises Buybacks and Pledges Higher Dividends

Poinews.com – TotalEnergies raises buybacks and pledges higher dividends as oil prices near $100 a barrel bolster the French energy group’s cash generation. The company presented its shareholder-return plans and long-term production strategy in New York, setting out targets that extend into the next decade.

The board approved a $2.5 billion (€2.2 billion) share-buyback programme for the final quarter of 2026. For the first quarter of 2027, TotalEnergies expects repurchases of between $2 billion (€1.7 billion) and $2.5 billion (€2.2 billion), above the $1.5 billion (€1.3 billion) authorised for the third quarter of 2026.

The group also said dividends should rise by more than 5% annually from 2026 to 2030. It maintained its commitment to return at least 40% of cash flow to shareholders through a combination of dividends and buybacks.

Lower gearing creates room for shareholder returns

TotalEnergies expects its gearing ratio to fall below 10% by the end of 2026, from 13.1% at the end of June. A lower gearing ratio means debt represents a smaller share of the company’s financing, potentially giving it more flexibility for investment, debt reduction and investor payouts.

Shares rose about 2% by Monday afternoon compared with their closing level on Friday, as investors assessed the larger planned distributions and the company’s outlook.

Brent crude averaged $103.8 per barrel in the second quarter, when TotalEnergies reported adjusted net income of $6 billion (€5.2 billion). Higher oil prices can support revenue and operating cash flow, although future results remain dependent on energy-market conditions.

Production plans combine hydrocarbons and electricity growth

TotalEnergies raises buybacks and pledges higher dividends while continuing to pursue production growth across oil, gas and electricity. The company aims to increase total energy production by 4% a year through 2030, with oil and gas output rising by more than 3% annually on average between 2025 and 2030.

It expects to maintain oil and gas production near 3 million barrels of oil equivalent per day through 2035. Existing reserves and development projects in Namibia, Nigeria, Libya, Malaysia, Mozambique and Papua New Guinea are intended to support that target.

Between 2030 and 2035, the group aims for oil and gas production growth of 2% to 3% annually, backed by exploration and discovered resources. The strategy keeps hydrocarbons central to TotalEnergies’ long-term plans while expanding its electricity operations.

Electricity business expected to expand rapidly

Electricity generation is projected to grow by more than 20% a year, reaching between 100 and 120 terawatt-hours by 2030. The company expects its Integrated Power division, which includes renewable-energy and electricity activities, to reach free-cash-flow break-even in 2026 and produce positive free cash flow from 2027.

By 2035, TotalEnergies expects electricity to account for one-quarter of its overall energy mix. The company said this growth will complement, rather than replace, its large oil and gas business.

Management estimates that free cash flow in 2030 could be around $10 billion (€8.7 billion) higher than its projected 2025 level if energy prices remain unchanged. On a per-share basis, that would represent an increase of more than $4.

Investment and emissions targets remain unchanged

TotalEnergies plans annual net investment of $14 billion (€12.3 billion) to $17 billion (€14.9 billion) between 2027 and 2032. The spending is intended to support oil, gas, electricity and other energy projects.

The company also reaffirmed its goal of halving direct emissions from its oil and gas operations. TotalEnergies raises buybacks and pledges higher dividends while maintaining this emissions commitment as part of its wider energy strategy.

Frequently asked questions

What does the TotalEnergies buyback plan mean for shareholders?

Share buybacks reduce the number of shares in circulation when completed. This can increase the value represented by each remaining share, although it does not guarantee a higher share price.

How much will TotalEnergies increase its dividend?

The company said it intends to increase dividends by more than 5% a year for the 2026 to 2030 financial years, subject to its financial performance and market conditions.

Why are oil prices important to TotalEnergies?

Oil prices influence the revenue and cash flow generated by oil and gas producers. Stronger prices can provide more funds for investment, dividends, buybacks and debt reduction, while lower prices can have the opposite effect.