REG-TotalEnergies SE 2022 Strategy & Outlook Presentation: In Changing Energy Markets, TotalEnergies Demonstrates the Relevance of Its Strategy, Accelerating Its Transformation While Offering Attractive Shareholder Return

TotalEnergies SEAnnouncement

28/09/2022 14:15

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2022 Strategy & Outlook Presentation: In Changing Energy Markets,
TotalEnergies Demonstrates the Relevance of Its Strategy, Accelerating Its
Transformation While Offering Attractive Shareholder Return

The Board of Directors approves a special interim dividend of 1 €/share

 

TotalEnergies (Paris:TTE) (LSE:TTE) (NYSE:TTE):

At its meetings on September 22 and 28, TotalEnergies' Board of Directors
reviewed the Company's outlook in the context of changing energy markets as a
result of the energy transition.

The Board of Directors noted the relevance of the Company's balanced
multi-energy strategy in light of the developments in the oil, gas and
electricity markets. Thanks to refocusing the portfolio of oil and gas assets
and projects on low cost (less than $20/b), a strong growth strategy in
liquefied natural gas (LNG) to position itself among the top 3 worldwide, and
the accelerated development into electricity, mainly renewable to reach the
top 5 worldwide, the Company is in a very favorable position to benefit from
the evolution of energy markets.

With a breakeven anchored below $25/b, TotalEnergies is a much more profitable
company today than it was 10 years ago: at the same oil equivalent price, it
generates an additional $15 billion of cash flow and can take full advantage
of favorable environments. Thus, by end-2022, the Company will have a very
strong balance sheet with gearing sharply down to around 5%, providing more
flexibility. It is positioned to both accelerate its transformation strategy
and to offer an attractive return to the shareholder policy.

In addition, the Company expects underlying cash flow (excluding Russia) to
grow by $4 billion over the coming 5 years using moderate energy price
assumptions ($50/b for oil and $8/Mbtu for European gas), knowing that it
would generate an additional cash flow of more than $3 billion for every $10/b
increase in the price of oil. This structural cash flow growth will support
dividend growth over the next 5 years.

In this context, the Board of Directors has adopted a cash flow allocation
strategy for the coming years. It provides for the allocation of 35-40% of
cash flow to shareholders through the cycles while accelerating the Company's
transformation strategy with net investments increasing to $14-18 billion per
year over 2022-25. This increase will be dedicated in priority to the
development of carbon-free energies and carbon footprint reduction programs
which will represent about a third. Investments in solar and wind will exceed
$4 billion in 2022 (compared to $3 billion in 2021) and a $1 billion energy
savings program will be deployed globally in 2023-24 to control the cost of
energy consumed and accelerate the reduction of emissions. The remaining
two-thirds will be dedicated to on one hand to growing in LNG and on the other
to developing low-cost, low-emission oil projects to meet demand.

Confident in TotalEnergies' ability to ensure profitable and sustainable
growth in the coming years and seeking to share with its shareholders the
Company's results in this context of high prices, the Board of Directors has
taken following decisions:

- allocate through the cycles 35-40% of cash flow to shareholders

- for year 2022, maintain the $7 billion share buyback program as announced in
July and pay a special interim dividend of 1 € per share in December 2022,
in addition to the 5% increase in quarterly interim dividends already
announced and implemented. The return to shareholders should therefore
represent between 35 and 40% of cash flow as of 2022.

*****

Patrick Pouyanné, Chairman and Chief Executive Officer of TotalEnergies, and
Helle Kristoffersen, President Strategy & Sustainability, are presenting
the Company's strategy and outlook in New York today. The presentation and
video broadcast in English of the event are available on totalenergies.com.

Two thematic presentations and three roundtables led by the members of the
Executive Committee of TotalEnergies will take place after this Strategy &
Outlook presentation:

A world-class integrated LNG portfolio

Stéphane Michel, President Gas, Renewables & Power

Developing our multi-energy model in the United States

Jean-Pierre Sbraire, Chief Financial Officer

Roundtable “The future of mobility”

Bernard Pinatel, President Refining & Chemicals

Thierry Pflimlin, President Marketing & Services

Roundtable “Our business model in electricity”

Helle Kristoffersen, President Strategy & Sustainability

Stéphane Michel, President Gas, Renewables & Power

Roundtable “Leveraging technical expertise to transform the Company”

Namita Shah, President OneTech

Nicolas Terraz, President Exploration & Production

Replays of the presentations will be available from September 29 on the
website totalenergies.com.

***

About TotalEnergies

TotalEnergies is a global multi-energy company producing and supplying energy:
oil and biofuels, natural gas and green gas, renewables and electricity. Its
more than 100,000 employees are committed to energy that is ever more
affordable, cleaner, more reliable and accessible to as many people as
possible. Present in more than 130 countries, TotalEnergies places sustainable
development in all its dimensions at the heart of its projects and operations
to contribute to the well-being of populations.

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Warning 

The terms "TotalEnergies", "TotalEnergies Company" and "Company" appearing in
this document are used to refer to TotalEnergies SE and the consolidated
entities that TotalEnergies SE controls directly or indirectly. Similarly, the
terms "we", "us", "our" may also be used to refer to these entities or their
employees. The entities in which TotalEnergies SE holds a stake directly or
indirectly are separate and autonomous legal persons. This document may
contain forward-looking statements. They may prove to be inaccurate in the
future and are dependent on risk factors. Neither TotalEnergies SE nor any of
its subsidiaries undertakes or assumes any commitment or responsibility to
investors or any other stakeholder to update or revise, in particular as a
result of new information or future events, any or all of the statements,
forward-looking information, trends or objectives contained in this document.
Information regarding risk factors that could have a material adverse effect
on TotalEnergies' financial results or operations is also available in the
most up-to-date versions of the Universal Registration Document filed by
TotalEnergies SE with the Autorité des marchés financiers and Form 20-F
filed with the United States Securities and Exchange Commission ("SEC").

Contacts TotalEnergies 

Media Relations: +33 1 47 44 46 99 l presse@totalenergies.com
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Investor Relations: +33 (0)1 47 44 46 46 l ir@totalenergies.com
(mailto:ir@totalenergies.com)



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