TotalEnergies (TTE.US) has pledged to raise its dividend by more than 5% each year through 2030 and to increase share buybacks, as the French energy giant benefits from rising oil and gas output and surging prices.
The largest refiner in Europe announced in a statement on Monday that it will repurchase $2.5 billion of shares in the fourth quarter of 2026, and will buy back $2 billion to $2.5 billion of shares in the first quarter of 2027. This scale exceeds the previously planned buyback of $1.5 billion for the July-to-September quarter. The company expects its debt-to-equity ratio to fall below 10% by the end of this year.
The statement was released ahead of the company's investor day in New York. Although TotalEnergies and some of its peers have been forced to halt oil and gas production around the Persian Gulf since the outbreak of the U.S.-Iran war at the end of February this year, they are benefiting from the surge in crude oil and fuel prices triggered by the conflict in the Middle East as well as the Russia-Ukraine conflict.
The company said that under the same price assumptions, its cash flow will grow by $10 billion from 2025 to 2030, because it plans to increase oil and gas production by an average of more than 3% annually over that period. Electricity output is expected to grow by more than 20% annually.
These tensions have brought a cash windfall for TotalEnergies, while rising energy prices are exacerbating the cost-of-living crisis, prompting opposition parties in France to increasingly call for a tax on the company's profits. So far, the Macron government has not done so, while providing assistance to farmers, fishermen and some low-income earners.
Meanwhile, TotalEnergies has capped the price of gasoline and diesel at its French filling stations to reassure politicians and motorists.
To support long-term growth, TotalEnergies plans to invest a net $14 billion to $17 billion between 2027 and 2032. The company had previously planned to spend $14 billion to $16 billion annually between 2026 and 2030.