Business
TotalEnergies reiterates importance of its strategy in changing energy markets

The Board of Directors of TotalEnergies has restated the relevance of the Company’s all-inclusive multi-energy strategy in light of the developments in the oil, gas, and electricity markets.
This position was reiterated by the Board of the company at its meeting on September 22 and 28 while undertaking a comprehensive overview of the company’s outlook in the light of changing energy markets on account of energy transition.
The company is now in strong position and vantage point to reap bountifully from the burgeoning energy market as a result of its refocusing of the portfolio of oil and gas assets and projects on the low cost (less than $20/b), a strong growth strategy in liquefied natural gas (LNG) to position itself among the top 3 worldwide, and the accelerated development into electricity.
TotalEnergies is a much more advantaged and in profitable turf currently than was the case about a decade ago.
Currently, the Company expects underlying cash flow (excluding Russia) to grow by $4 billion over the coming 5 years using moderate energy price assumptions ($50/b for oil and $8/Mbtu for European gas), knowing that it would generate an additional cash flow of more than $3 billion for every $10/b increase in the price of oil. This structural cash flow growth will support dividend growth over the next 5 years.
In this context, the Board of Directors has adopted a cash flow allocation strategy for the coming years which provides for the allocation of 35-40% of cash flow to shareholders through the cycles while accelerating the Company’s transformation strategy with net investments increasing to $14-18 billion per year over 2022-25.
This increase will be dedicated in priority to the development of carbon-free energies and carbon footprint reduction programs which will represent about a third.
Investments in solar and wind will exceed $4 billion in 2022 (compared to $3 billion in 2021) and a $1 billion energy savings program will be deployed globally in 2023-24 to control the cost of energy consumed and accelerate the reduction of emissions. The remaining two-thirds will be dedicated to on one hand growing LNG and on the other developing low-cost, low-emission oil projects to meet demand.