At TotalEnergies, our priority is to keep you informed through listening and dialogue. Here are some of your questions.
Is the dividend policy at TotalEnergies comparable to that of other industry firms?
TotalEnergies prioritizes payment of an attractive, long-term dividend across cycles and distributes a quarterly dividend, as do the four other industry majors (Exxon, Chevron, Shell, BP). That decision is reflected in our practice of allocating cash flow generated by our operations to dividend payments as a matter of priority, and of conducting share buyback programs to promote higher dividends over time.
The dividend amount (€0.79/share at the next payout) is climbing steadily; it is up 6.8% for the first quarter of 2024. In 2023 it rose by more than 7%.
Unlike that of other industry firms, the TotalEnergies dividend was maintained during the Covid pandemic, and it offers a return above 5%, putting it at the high end of the range among the majors.
The distribution to Company shareholders takes two forms: the dividend and a share buyback program ($2 billion expected for the first quarter of 2024), with a shareholder return policy that is this year targeting a payout above 40% of cash flow, while the Company is maintaining a sizable level of investment ($17-18 billion for 2024, including $5 billion allocated to Integrated Power).
Thanks to those distribution policies, maintained over the long term across cycles, TotalEnergies has conferred a higher average annual payout over the past decade than any other company*, while continuing to invest the most in the energy transition.
Industry analysts increasingly view the strategy adopted by TotalEnergies as the most promising response to the energy transition. In what sense is that true? How does the Company’s strategy differ from that of its peers?
TotalEnergies’ strategy for tackling the energy transition is considered the most judicious insofar as it is balanced: it maintains a focus on responding to current demand, which is still based heavily on hydrocarbons, especially (and increasingly) natural gas, while building the decarbonized energy system of the future.
So TotalEnergies is successfully coupling growth in oil and gas liquefied natural gas (LNG) and low-cost, low-emission oil projects with growth in the production and sale of electricity, primarily renewable power (Integrated Power).
That strategy, developed more than five years ago, is a long-term commitment and it has delivered solid results quarter after quarter.
From that perspective, at the close of 2023 TotalEnergies is uniquely positioned within the sector in terms of the energy transition, strategic balance and financial performance. That’s reflected in the combination of a net $5 billion investment in Integrated Power, a 9% hike in LNG production and top-class profitability among the industry majors at 19%.
