Dear Shareholders,
At our last Investors’ Day in New York, alongside the Executive Committee, I presented your Company’s strategy and outlook up to the end of the current decade.
This event provided an opportunity to restate the basis of our strategy, which has two pillars: oil and gas, our traditional activities, which we intend to pursue responsibly, and electricity, in which we are investing heavily in order to build tomorrow’s energy model. We believe we have a coherent strategy that combines profitable growth and sustainability. Between now and 2030, our global energy production will increase by 4% a year, chiefly in gas, an energy that will play a major role in the transition, and electricity, which will reach almost 20% of our energy mix.
In oil and gas, our extensive project portfolio should deliver annual growth of some 3% up to 2030, driven by the launch of low-cost, low-emissions projects.
In electricity, we are developing a differentiated model based on integration throughout the value chain, combining renewable and flexible assets, and batteries, in order to produce clean firm power and generate over 12% ROACE, equivalent to the profitability of oil and gas investments, at a price per barrel of $60.
In addition to these targets, we have big ambitions for decarbonization for 2030: a net reduction of 40% in Scope 1 & 2 emissions and a 25% fall in the carbon intensity of our energy sales* compared to the 2015 baseline.
TotalEnergies believes in a strategy of balanced, profitable transition, and confirms net investments between $16-18 billion per year during 2025-2030, of which around $5 billion will be dedicated to low-carbon energies. The Company retains flexibility to reduce its net investments by $2 billion in case of a sharp drop in prices.
Thanks to this clear and disciplined investment policy and the perspective for $10 billion of free cash flow growth by 2030 (versus 2024 at same price deck), the Board of Directors has confirmed a shareholder return of over 40% of cash flow through cycles and has made the following decisions:
Thank you for your trust and your loyalty.
*Lifetime carbon intensity of energy products sold and used by end customers - See the Sustainability & Climate - Progress Report 2024