TotalEnergies raises share buyback targets as fuel prices drive profits

TotalEnergies, said on Monday it was increasing fourth-quarter share buybacks to $2.5 billion, up from $1.5 billion in recent quarters, and guided for a further step-up in production growth beyond 2030, reassuring investors of consistent growth despite the challenging geopolitical climate.

The French company also said it would buy back between $2 billion and $2.5 billion in shares in the first quarter of 2027 and increase its dividend by more than 5% annually through 2030.

TotalEnergies’ profit has surged this year thanks to higher oil prices, strong trading results and bigger refining margins on the back of the Iran war, with its second-quarter earnings  at the highest level in nearly three years.

The energy major expects its oil and gas production to grow 2% to 3% annually between 2030 and 2035, supported by its portfolio of projects nearing completion, it said in a press release ahead of its investor day. Total’s projects include those in Namibia, Nigeria, Libya, Malaysia, Mozambique and Papua New Guinea.

The ambition suggests Total is looking to inorganically ‌supplement its upstream portfolio on top of its current projects, RBC analysts said in a note.

Investors have been increasingly scrutinising oil majors’ exploration pipelines and the depth of their resource base beyond 2030, as they assess companies’ long-term growth prospects. TotalEnergies said in the statement it had a proved reserve life of more than 12 years.

Its British peer BP suspended share buybacks earlier this year to focus on debt reduction and growth investment, while Shell cut its quarterly share buyback programme in May to $3 billion from $3.5 billion.

TotalEnergies traded slightly lower than at the start of 2026, and retains a modest premium to BP and Equinor, while trading below Shell, Eni and the US majors.

TotalEnergies plans net investments of $14 billion to $17 billion per year from 2027 to 2032. That is slightly higher than the annual $14 billion to $16 billion between 2026 and 2030 announced in November 2025.

The company also said it saw a gearing ratio, which measures net debt against equity, below 10% by the end of 2026.

Its shares rose 1% by 0910 GMT, largely in line with the broader European energy index. The calm reaction suggests the targets were largely priced in and the statement reassured investors on Total’s consistent strategy, Oddo BHF analyst Ahmed Ben Salem said.