French Giant TotalEnergies Hikes Dividend by 5% for 2025

It’s a big news week for French oil major TotalEnergies this week, with investors informed on Wednesday that the company would narrow its focus on cheaper upstream output and hike dividends by 5% per share for next year, combined with $2 billion in quarterly buybacks. 

In its Strategy & Outlook presentation on Wednesday, TotalEnergies emphasized “more energy, less emissions, more free cash-flow” as it “advances its balanced and profitable multi-energy strategy”. 

The French oil giant is targeting 4% production growth per year from 2024 to 2030, with $10 billion-plus in underlying free cash-flow growth. 

For 2024, the company expects buybacks to clock in at $8 billion, with another $2 billion per quarter for next year. 

“Our dividend breakeven is under $50 per barrel … and we can sustain buybacks under $70 per barrel,” TotalEnergies CEO Patrick Pouyanne said in the presentation. 

The announcement comes as oil and gas companies are faced with the prospect of potentially slowing dividend payouts and share buybacks after Brent plunged below $70 in September, clawing its way back this week with escalating Middle East tensions. 

TotalEnergies is eyeing upstream output costs of around $5 per barrel for 2024. Earlier this week, the company greenlighted a $10.5 billion development project for Suriname’s offshore oil and gas Block 58, with APA Corporation, with output expected in the first half of 2028. 

“Oil & Gas production average growth of ~3% per year to 2030, led by LNG, thanks to the launch of six major projects in 2024 (two in Brazil, Suriname, Angola, Oman, Nigeria) that de-risk, high-grade and extend guidance from 2028 to 2030,” TotalEnergies said in its presentation, adding that over the next two years, growth will surpass 3% annually due to the start-up of high-margin projects in the U.S. Gulf of Mexico, Brazil, Iraq, Uganda, Argentina, Malaysia and Qatar. 

“In 2024, the Company has also de-risked its LNG exposure to spot gas prices by signing long-term LNG sales contracts mainly indexed on Brent and by developing its upstream gas production in the US through two low-cost acquisitions,” Total said, with Pouyanne warning that there will be 50 million tons of new LNG supply per year representing 10% more than the market can handle. 

By Charles Kennedy for Oilprice.com

More Top Reads From Oilprice.com

• Russia Not Confirming Reports of Energy Sector Nationalization Plans
• Saudi Arabia Warns Oil Prices Could Drop to $50
• TotalEnergies Set to Make $10B Investment Decision Offshore Suriname