On Tuesday, TotalEnergies announced its plan to buy back shares in the fourth quarter of 2021 and boost its investments in renewable energy.
The company will buy back USD1.5 billion of shares as it is confident in its ability to combine energy transition and shareholder return, thus creating long-term shareholder value.
In the 2022-2026 period, the company’s exploration and production activities are estimated to generate more than USD5 billion/year in net cash flow if oil was USD50/barrel and for an additional USD10/barrel in oil price, it would gain a further USD3.2 billion.
TotalEnergies will power up the growth of its investments in renewables and electricity to USD3 billion/year. It targets a positive net cash flow in its electrical business by 2030.
TotalEnergies also expressed its target to be one of the world's top five renewable power producers. It will have 35 GW of capacity by 2025 and more than 10 GW in operation by the end of 2021. Capacity was expected to grow 6 GW a year from 2022 to 2025.
CEO Patrick Pouyanne also plans to change the sales mix of the company. By 2030, its sales mix would gradually change to a 30% share for oil, 50% gas, 15% electricity, and 5% biomass and hydrogen. Petroleum product sales will decline by at least 30% over the period 2020-2030.
