TotalEnergies flags higher dividend, energy production in 2030 outlook

French oil major TotalEnergies announced a 5% increase in dividends per share for 2025, and hiked its oil and gas production target to 3% annual growth to 2030 during its investor day presentation on Wednesday.

The company had previously projected 2-3% growth in hydrocarbons output to 2028.

With oil prices having fallen from around $90 per barrel in April to $70 last month, TotalEnergies is eager to show investors that its strategy of pursuing low-cost upstream projects will allow it to maintain shareholder returns through the decade, even as it builds its green portfolio.

The company said it expected to return 45% of its cash flow to shareholders this year, and to extend its current rhythm of $2 billion in share buybacks per quarter through 2025 assuming "reasonable market conditions".

Its total energy production is now forecast to increase 4% annually, with $10 billion more in free cash flow by 2030.

TotalEnergies' 24 gigawatt (GW) renewable portfolio - more than BP, Shell, Equinor and Eni combined - is currently set to jump 45% to 35 GW by next year, with a goal of 70% of the company's electricity in 2030 coming from renewable sources.

The group's annual investment target of $16-18 billion, with a possible $2 billion reduction in case of price drops, is unchanged.