© Khanh Renaud
“TotalEnergies increases shareholder distribution guidance to more than 40% of CFFO from 2023.”
Dear Shareholders,
At the Investor Day on September 27 in New York, I, alongside your Company’s Executive Committee, presented TotalEnergies’ Strategy & Outlook. We reaffirmed the relevance of our balanced multi-energy strategy in light of developments in the oil, gas and electricity markets. Anchored on two pillars, oil & gas, notably LNG, and integrated power, the energy at the heart of the energy transition, TotalEnergies is in a very favorable position to take advantage of changing energy prices.
Thanks to refocusing the oil and gas portfolio on assets and projects with low breakevens and low greenhouse gas emissions, and to the diversification into electricity, notably renewable, through an integrated strategy from production to customer, the Company is implementing its transition strategy while offering an attractive shareholder return.
TotalEnergies plans to grow Oil & Gas production by 2-3% per year over the next five years, while drastically lowering the emissions from its operations. Thanks to its rich, low-cost, low-emission upstream portfolio, your Company intends to produce oil & gas responsibly and sustainably.
In parallel, the Company is developing a profitable and differentiated Integrated Power model, to create a future cash engine of the Company. TotalEnergies aims to grow its power generation to more than 100 TWh by 2030, investing $4 billion per year to build a cost-competitive portfolio combining renewable (solar, onshore wind, offshore wind) and flexible assets (CCGT, storage) to deliver low-carbon electricity to its customers, 24/7.
Confident in the strong fundamentals of the Company, the Board of directors has decided to increase share buybacks to reach $9 billion in 2023. TotalEnergies expects a shareholder return of more than 40% of CFFO in 2023, around 44%. The Company has also increased shareholder distribution guidance to more than 40% of CFFO through the cycles, keeping net investments between $16-18 billion per year over 2024-2028 to implement the transition of the Company.
Thank you for your ongoing trust and loyalty.
Patrick Pouyanné
Chairman and Chief Executive Officer of TotalEnergies