TotalEnergies raises buybacks and pledges higher dividends
Usagevpn.com – TotalEnergies raises buybacks and pledges higher dividends as oil prices near $100 per barrel, outlining a larger return of cash to shareholders while maintaining investment in oil, gas and electricity. The French energy group presented its updated strategy in New York on Monday.
The board authorised a $2.5 billion (€2.2bn) share buyback programme for the final quarter of 2026. For the first quarter of 2027, TotalEnergies expects repurchases of between $2 billion (€1.7bn) and $2.5 billion (€2.2bn).
That is above the $1.5 billion (€1.3bn) buyback approved for the third quarter of 2026. Repurchasing shares reduces the number available on the market and is one way companies distribute excess cash to investors.
Dividend growth planned through 2030
As TotalEnergies raises buybacks and pledges higher dividends, it has also approved a policy targeting annual dividend growth of more than 5% from 2026 to 2030. The company reaffirmed its commitment to return at least 40% of cash flow to shareholders.
The group expects its gearing ratio to fall below 10% by the end of 2026, from 13.1% at the end of June. Lower gearing gives a company greater flexibility to reduce debt, finance projects and manage swings in commodity prices.
Investors initially reacted positively to the announcement, with TotalEnergies shares rising about 2% by Monday afternoon compared with their closing price on Friday.
Higher crude prices strengthen cash generation
Brent crude averaged $103.8 per barrel in the second quarter, providing a favourable market backdrop for large oil producers. TotalEnergies reported adjusted net income of $6 billion (€5.2bn) for the period.
The company said that, assuming energy prices remain unchanged, free cash flow in 2030 could be around $10 billion (€8.7bn) higher than in 2025. It said this would represent an increase of more than $4 per share.
Free cash flow is the money remaining after operating costs and capital spending. It can support dividends, buybacks, debt reduction and new investment, making it a key measure for investors assessing TotalEnergies’ strategy.
Oil, gas and power output targeted for growth
TotalEnergies raises buybacks and pledges higher returns while keeping its production-growth targets in place. The company reaffirmed its ambition to increase total energy production by 4% a year through 2030, covering oil, gas and electricity.
Oil and gas output is expected to grow by more than 3% annually on average between 2025 and 2030. The group said projects and reserves in Namibia, Nigeria, Libya, Malaysia, Mozambique and Papua New Guinea should help sustain production at around 3 million barrels of oil equivalent per day through 2035.
From 2030 to 2035, TotalEnergies is targeting annual oil and gas production growth of between 2% and 3%, relying on exploration activity and resources that have already been discovered.
Electricity is also expected to become a larger part of the business. Power generation is forecast to rise by more than 20% a year, reaching between 100 and 120 terawatt-hours by 2030.
The Integrated Power division, which includes renewable energy and electricity activities, is expected to reach free-cash-flow breakeven in 2026 and become cash-flow positive in 2027. By 2035, electricity is projected to make up one-quarter of TotalEnergies’ overall energy mix.
FAQ: What the announcement means for investors
TotalEnergies raises buybacks and pledges higher dividends, but what does that mean for shareholders? The announced programmes are intended to return more cash to investors, subject to the company’s financial position and market conditions.
Why do oil prices matter? Higher oil and gas prices can improve earnings and cash flow for producers, although energy markets remain volatile and future results can change as commodity prices move.
What is the dividend target? TotalEnergies plans annual dividend growth of more than 5% for the 2026 to 2030 financial years, alongside a commitment to return at least 40% of cash flow to shareholders.
