Total Announces $20 Billion Buyback Amid Industry Challenges

Total, the French energy conglomerate, has announced a $20 billion stock buyback program for the second quarter, underscoring its robust financial health and commitment to shareholder returns. This decision comes amidst a challenging industry landscape marked by declining profits and a sluggish oil market. Despite these headwinds, Total has maintained its target of a 7.6% increase in dividends for the year and has kept its capital expenditure plans unchanged.

Total's CEO, Patrick Pouyanne, expressed confidence in the company's ability to achieve its growth targets by 2025, citing the firm's strong balance sheet and low debt levels. This strategic move contrasts sharply with other major oil companies, such as BP and Eni, which have scaled back their capital expenditures in response to economic uncertainties and market volatility.

In its first-quarter financial report, Total disclosed an adjusted net profit of $41.9 billion, down from $51.1 billion in the same period last year. This performance fell slightly short of analysts' expectations of $43.8 billion. The company attributed this decline to slower economic growth, trade disruptions, and the impact of increased production by OPEC+.

Looking ahead, Total anticipates that oil prices will fluctuate between $60 and $70 per barrel over the coming months, with refining and petrochemical margins remaining under pressure. Despite these challenges, the company has reaffirmed its net investment guidance of $170 billion to $175 billion by 2025, with $45 billion allocated to low-carbon energy initiatives. Total also aims to increase its oil and gas production by more than 3% this year.

As of the end of the first quarter, Total's net debt stood at $201 billion, an increase of $59 billion from the previous year. This rise is partly due to seasonal fluctuations in working capital. However, the company remains steadfast in its commitment to maintaining shareholder value and pursuing strategic growth opportunities, even in a challenging market environment.