TotalEnergies has announced plans to increase its dividend by more than 5% annually through 2030 as the energy company targets higher production and stronger cash flow over the coming years.
The French energy major announced the plan as part of its latest strategy and outlook, which also includes a target to grow total energy production by about 4% annually through 2030. The company expects its oil and gas production to increase by more than 3% annually between 2025 and 2030, supported by new projects already under development.
TotalEnergies said the growth in production is expected to increase its free cash flow by about $10 billion between 2025 and 2030, using the same price assumptions. The company also expects electricity generation to grow by more than 20% annually through 2030. It projects electricity production of between 100 and 120 terawatt hours per year by then.
According to the company, its Integrated Power business is expected to become free cash flow positive in 2027. The company said its strategy is designed to support continued investment while maintaining returns to shareholders. As part of the new policy, TotalEnergies’ board approved an annual dividend increase of more than 5% for financial years 2026 to 2030. It also confirmed a plan to return at least 40% of cash flow to shareholders while reducing its debt level.
TotalEnergies expects its gearing ratio, which measures the company’s debt relative to its capital, to fall below 10% by the end of 2026. The company also announced plans to increase its share buybacks. It authorised $2.5 billion in share buybacks for the fourth quarter of 2026 and between $2 billion and $2.5 billion for the first quarter of 2027. TotalEnergies said its production growth beyond 2030 would also be supported by projects in several countries, including Nigeria, Namibia, Libya, Malaysia, Mozambique and Papua New Guinea.
The company expects to maintain oil and gas production at around 3 million barrels of oil equivalent per day through 2035, supported by its existing projects and reserves. It also expects energy production from electricity to play a larger role in its business. Electricity is projected to account for about 20% of the company’s energy mix by 2030 and 25% by 2035.
The company’s latest strategy comes as it seeks to balance investment in oil and gas with expansion in electricity and lower carbon energy sources. TotalEnergies said the expected increase in production and cash flow would provide a stronger base for shareholder returns. The company also reaffirmed its commitment to reducing emissions from its operations while expanding energy production.
The latest dividend policy means shareholders are expected to receive annual dividend increases of more than 5% for each financial year from 2026 through 2030, subject to the company’s policy and financial performance.
