TotalEnergies forecasts 3% production growth, increased share buybacks in 2025

Investing.com -- TotalEnergies (EPA:TTEF) on Wednesday said it anticipates strong production growth in 2025, with hydrocarbon output projected to increase by more than 3%, supported by ramp-ups of projects launched in 2024, including Ballymore in the Gulf of Mexico and Mero-4 in Brazil. 

Shares of the petroleum business company rose by 1.2% at 03:26 ET (08:26 GMT).

First-quarter production is expected to range between 2.5 and 2.55 million barrels of oil equivalent per day, boosted by acquisitions in Malaysia and Texas. 

Additionally, the company forecasts a 5% rise in total energy production, combining hydrocarbons and electricity, with the Integrated Power segment expected to see electricity generation grow by over 20% to surpass 50 terawatt-hours.

TotalEnergies reaffirmed its commitment to strong shareholder returns, maintaining its policy of allocating more than 40% of cash flow from operations to investors. 

In 2024, the company executed $8 billion in share buybacks, representing 5% of its share capital. For 2025, share repurchases will continue at a quarterly rate of $2 billion, contingent on market conditions. 

Meanwhile, the Board of Directors proposed a final 2024 dividend of €0.85 per share, bringing the total annual payout to €3.22 per share, a 7% increase compared to 2023.

TotalEnergies reported a 21% decline in annual adjusted net income for 2024, reaching $18.3 billion, as the company faced a weaker market environment, impacted by lower refining margins.

The profit decline was driven by a combination of factors, including weaker refining margins in Europe and lower oil and gas prices compared to previous years.

The company generated adjusted net operating income of $3.5 billion despite a weaker refining environment. 

While TotalEnergies maintained robust performance in its Integrated LNG and Integrated Power segments, these gains were insufficient to offset declines in refining and overall hydrocarbons.

CEO Patrick Pouyanné in a statement said that the company continued to execute its multi-energy strategy, investing $17.8 billion in 2024, with a major portion directed toward low-carbon projects.

TotalEnergies also reported strong financial discipline, ending the year with a gearing ratio below 10%.