TotalEnergies To Buyback $1.5 Billion Of Shares

Multi-energy business TotalEnergies (TTE) on Tuesday, announced plans to buy back $1.5 billion of its shares in the fourth quarter 2021. The company made the announcement in accordance with its announced policy of allocating up to 40 percent of the surplus cash generated above $60/b to buybacks and in cognizance of the prevailing high prices of oil and gas.

The buyback is announced in the backdrop of sustainable cashflow growth which in a constant $50/b environment, is expected to approximate $5 billion between 2021 and 2026.

While presenting the company's strategy an outlook in Paris, the company affirmed its strategy as a multi-energy company active in oil, natural gas, renewables & electricity, biomass and hydrogen.

TotalEnergies also committed itself to more energy production through a sustainable approach that would ensure less emissions. The company reiterated that it was fully engaged toward its ambition to get to Net Zero by 2050.

The company plans to increase energy production by 30 percent from now to 2030, to be driven equally by electricity, essentially renewables and LNG. The sales mix is planned to evolve to 30 percent oil, 50 percent gas, 15 percent electricity and 5 percent biomass and hydrogen by 2030.

TotalEnergies also committed to maintain discipline on its investment program, which is expected to be $13-15 billion per year for 2022-25. 50 percent of these investments would be allocated to growing its activities and 50 percent to maintaining the base of its activities. 50 percent of the growth investments would be dedicated to the development of new energies, mainly renewables and electricity, and the other 50 percent to natural gas, essentially LNG.

TotalEnergies expects to scale up biogas, targeting 2 TWh/y production by 2025 and has the ambition to develop in clean hydrogen, kick starting by covering its own refining demand and then being a pioneer in the mass production of low-cost carbon-free hydrogen and in the production of synthetic fuels, particularly for aviation (SAF).

The company aims to become one of the world's top 5 renewable power producers with an objective of 100 GW gross installed capacity by 2030.

TTE was last traded at $48.93, up $0.89 or 1.85 percent from previous close.

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