TotalEnergies: Weathering Profit Storms with Dividend Raises and Buybacks

TotalEnergies, the French multinational energy company, has shown remarkable resilience in the face of weaker profits. Despite a 21% drop in full-year adjusted net income for 2024 compared to 2023, the company has decided to increase its dividend and maintain its share buyback program. This strategic move signals the company's confidence in its long-term prospects and commitment to returning capital to shareholders.



The company announced a 7% increase in its dividend for fiscal year 2024, compared to the previous year, and proposed a final dividend of 3.22 €/share. This decision comes on the heels of a 7.1% increase in 2023 compared to 2022, demonstrating a consistent commitment to rewarding shareholders with higher dividends. Additionally, TotalEnergies has been actively repurchasing its own shares, with a significant capital allocation decision in January 2025. The company purchased a total of 2,792,195 shares at an average price of €55.994070 per share, with a total investment of €156,346,362.24.



TotalEnergies' decision to increase its dividend and maintain share buybacks reflects its confidence in the company's long-term prospects, despite weaker profits. The company's commitment to returning capital to shareholders, while also investing in energy transition projects, demonstrates a balanced approach to value creation for both shareholders and stakeholders. By reducing the number of outstanding shares and potentially increasing earnings per share (EPS), TotalEnergies can enhance shareholder value and potentially drive up the stock price.

In conclusion, TotalEnergies' dividend increase and buyback program indicate a strong commitment to returning capital to shareholders, even in the face of weaker profits. The company's balanced approach to capital allocation, combining dividends, share buybacks, and strategic investments, positions it well to maintain a competitive edge in the energy sector. As the company continues to navigate the challenges of the energy market, its focus on long-term value creation for shareholders remains unwavering.