PARIS (Agefi-Dow Jones)–Energy producer TotalEnergies announced on Wednesday that it expects a $4 billion increase in its structural cash flow over the next five years, during which time it intends to increase its investments. in the energy transition but also the remuneration of its shareholders.
“The company forecasts growth in its cash flow (excluding Russia) of $4 billion over the next five years under moderate energy price assumptions ($50/barrel for oil and $8/Mbtu for European gas) knowing that it would benefit from more than 3 billion additional dollars for each [hausse de] 10 dollars” in barrel prices, the group said during an investor day.
“This growth in structural cash flow will support dividend growth over the next five years,” he added in a statement.
For the current year, where the group benefits from particularly high cash flows due to energy prices, TotalEnergies has decided to maintain its share buyback program at 7 billion dollars, as announced in July, and to pay an exceptional interim dividend of 1 euro per share in December 2022, beyond the 5% increase in quarterly interim dividends already announced and implemented.
“At the end of 2022, the company will show a very solid balance sheet with a sharply reduced debt ratio of around 5%, which gives it new room for manoeuvre. It is in a position to both accelerate its transformation strategy and to offer an attractive shareholder return policy,” said TotalEnergies.
The group thus intends to distribute, in 2022 and “through the cycles”, 35% to 40% of the cash flow to the shareholders while accelerating its investments in the transformation of the company into a “multi-energy” company.
The group expects net investments to increase by 14 to 18 billion dollars per year for the period 2022-2025. This increase will be devoted “as a priority” to the development of carbon-free energies and programs to reduce the carbon footprint which will reach a third of the investments, the company said.
-Francois Schott, Agefi-Dow Jones; 01 41 27 47 92; [email protected] ed: LBO
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September 28, 2022 09:47 ET (13:47 GMT)