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PARIS - TotalEnergies SE (PARIS:TTE) (LSE:TTE) (NYSE:TTE), currently valued at $136.5 billion in market capitalization, will reduce the pace of its share buybacks to adapt to the current energy environment while maintaining its commitment to dividend growth, the company’s Board of Directors announced Wednesday. InvestingPro analysis suggests the stock is currently trading below its Fair Value, presenting a potential opportunity for investors.
The Board has authorized $1.5 billion in share buybacks for the fourth quarter of 2025, bringing the total for the year to $7.5 billion. For 2026, the company has set quarterly buyback guidance between $0.75 billion and $1.5 billion, based on Brent crude prices between $60 and $70 per barrel.
During its annual strategic meeting, the Board confirmed TotalEnergies’ focus on its two-pillar strategy of oil and gas (primarily LNG) and Integrated Power. The company aims to achieve 4% annual growth in overall energy production through 2030 while reducing operational emissions.
The Board reaffirmed its shareholder return policy of distributing at least 40% of annual cash flow from operations through market cycles, with dividends remaining the priority. TotalEnergies noted its dividend has grown more than 20% over the past three years and has not been cut in four decades.
The company also plans to maintain financial flexibility with a gearing ratio below 20% amid what it described as an "uncertain economic and geopolitical environment."
Additionally, the Board approved a 2026 capital increase reserved for employees, which will bring employee shareholding to more than 9% of the company’s share capital. TotalEnergies highlighted that employee ownership has increased by more than 50% over the past decade.
The Board also approved a technical project to convert American Depositary Receipts listed on the New York Stock Exchange since 1991 into ordinary shares, noting this will not impact holders of ordinary shares listed on Euronext Paris.
These announcements were made in a press release ahead of the company’s presentation of its 2030 strategic outlook to investors on September 29.
In other recent news, TotalEnergies SE reported its earnings for the second quarter of 2025, showing mixed results. The company missed earnings per share (EPS) expectations, posting $1.57 compared to the anticipated $1.67, a 5.99% shortfall. However, TotalEnergies exceeded revenue forecasts, generating $44.68 billion against the projected $39.85 billion, marking a 12.12% increase. In anticipation of the company’s Annual Investor Day, TD Cowen reiterated its Hold rating with a price target of $65.00. The firm expects TotalEnergies to announce $4 billion in share buybacks for fiscal year 2026, which is lower than the consensus estimate of $6 billion. Despite this, TD Cowen forecasts capital expenditure to be better than feared, estimating it at $17 billion per year. These developments provide a snapshot of TotalEnergies’ financial and strategic outlook.
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