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TotalEnergies to allocate 44% of cash flow to shareholders 

TotalEnergies, the prominent French energy conglomerate, declared its intention on Wednesday, September 27, to augment returns to shareholders while charting an ambitious trajectory of elevating oil and gas production by 2 to 3% annually over the next five years. 

During their investor day presentation, the group outlined its plan to allocate approximately 44% of its cash flow to shareholders in 2023, further aiming to maintain this dividend distribution model beyond 2023, setting a steadfast target of exceeding 40%.

Additionally, as reported by Reuters, the company revealed a substantial share buyback initiative amounting to $9 billion in 2023, illustrating its commitment to bolster shareholder value.  

Furthermore, TotalEnergies expressed optimism in amplifying cash flow by a noteworthy $10 billion by 2028 in comparison to the fiscal year 2021.

This strategic vision presented by TotalEnergies showcases a meticulous blend of enhancing shareholder gains and fueling future growth by optimizing oil and gas production.  

A look at 2022 global performance 

Recall that in the fiscal year 2022, the oil major achieved an unprecedented milestone by recording a net profit of $36.2 billion a remarkable twofold increase from the previous year.

This remarkable ascent in profit was attributed to the prevailing surge in oil and gas prices, a consequence of the geopolitical events surrounding Russia’s invasion of Ukraine. 

In the specific domain of the fourth quarter, TotalEnergies reported an adjusted net income of $7.6 billion. However, this figure encompassed a $4.1 billion impairment associated with the deconsolidation of its stake in the Russian gas firm, Novatek. 

Noteworthy is the fact that the net income for the last quarter of the year aligned with analyst predictions in a consensus by Refinitiv.

Moreover, it showcased a tangible increase compared to the $6.8 billion recorded during the same period the previous year, and a notable decrease from the $9.9 billion in the third quarter of 2022.  

The Nigeria context 

As of Q2/2023, TotalEnergies Marketing Nigeria exhibited a remarkable revenue surge, reaching N139.3 billion, marking a substantial 25% growth compared to the previous N111.4 billion.

This revenue surge surpassed the company’s initial estimates of N84.8 billion by an impressive margin of 31.3%.  

Notably, the revenue for the first quarter of the year stood at N135 billion. It is essential to note that the ascent in revenue was accompanied by an increase in both the cost of sale and operating expenses, amounting to a collective N132 billion.  

This figure significantly surpassed the N105 billion reported during the same period last year.

Despite this, the operating profit during this period stood strong at N8.1 billion, surpassing the company’s estimates of N5.5 billion and outperforming the previous year’s operating profit, which was N6.9 billion. 

Furthermore, the pre-tax profits observed a commendable growth of 14.7%, reaching N7 billion from the N6.1 billion reported during the corresponding period a year earlier.

This financial overview emphasizes the company’s exceptional performance during the second quarter, surpassing its own forecast by a considerable margin.  


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