TotalEnergies To Invest $18bn Annually To Upscale Production

Oil major TotalEnergies is planning to increase its oil-and-gas production as part of its newly released strategy.

In the announcement on Wednesday, it also plans to boost shareholder distributions as it expects to return around 44 per cent of cash flow from operations to shareholders in the current year and allocate $1.5 billion from divestment proceeds of Canadian assets to share buybacks, reaching $9 billion.

It also increased the distribution guidance to more than 40 per cent of CFFO beyond 2023, with net investments of $16 billion-$18 billion per year over the 2024-28 period.

TotalEnergies said it plans to grow its oil-and-gas production by 2 per cent to 3 per cent a year over the next five years, mainly from liquefied natural gas.

The oil-and-gas business is expected to generate more than $3 billion of additional underlying cash flow in 2028 compared to 2023 levels at constant prices, it said.

In regards to its low-carbon portfolio, the company said it aims to increase power generation to more than 100 terawatt-hours by 2030 by investing $4 billion per year.

It also plans to increase cash flow to more than $4 billion by 2028 from around $2 billion in 2023.

The company said it is building a portfolio that combines renewables, combined-cycle power plants and storage, with the aim to achieve a return on average capital employed of around 12 per cent.