TotalEnergies unveiled its plans on Wednesday, September 27, to boost returns to shareholders while embarking on an ambitious path to increase oil and gas production by 2 to 3% annually over the next five years.
During their investor day presentation, the group outlined its strategy to allocate approximately 44% of its cash flow to shareholders in 2023, with the intention of maintaining this dividend distribution model beyond 2023, setting a firm goal of exceeding 40%.
$9 billion share buyback program
As reported by Reuters, the company disclosed an extensive share buyback program amounting to $9 billion in 2023, demonstrating its commitment to enhancing shareholder value.
TotalEnergies expressed confidence in augmenting cash flow by a significant $10 billion by 2028 compared to the fiscal year 2021.
This strategic vision presented by TotalEnergies demonstrates a careful balance between increasing shareholder returns and driving future growth through the optimization of oil and gas production.
It’s worth recalling that in the fiscal year 2022, the oil major achieved an exceptional milestone by reporting a net profit of $36.2 billion, a remarkable twofold increase from the previous year.
This remarkable profit surge was attributed to the prevailing surge in oil and gas prices, driven by the geopolitical events surrounding Russia’s invasion of Ukraine.
In the specific context of the fourth quarter, TotalEnergies reported an adjusted net income of $7.6 billion.
However, this figure included a $4.1 billion impairment related to the deconsolidation of its stake in the Russian gas firm, Novatek.