TotalEnergies may consider extra dividend on higher cashflow, says CEO

TotalEnergies Considers Extra 2027 Dividend on Higher Cash Flow, Says CEO

TotalEnergies' Dividend Plans and Financial Performance

By Dimitri Rhodes

Potential for Extra Dividend in 2027

Oct 29 (Reuters) - French oil major TotalEnergies could pay an extra dividend early next year if its annual cash flow comes in at $43 billion, higher than expected, the company's chief executive Patrick Pouyanne told analysts on Thursday. 

Cash Flow Projections and Shareholder Returns

Speaking after reporting better-than-expected third-quarter profits, Pouyanne said 2026 cash flow could surpass $42 billion, potentially reaching $43 billion, and that he would consider an extra dividend to meet a commitment to return 40% of that to shareholders.

Details of the Extra Payout

The extra payout would come alongside the final dividend in February 2027, adding to $8 billion in share buybacks and $8.6 billion in regular dividends already pledged, he said.

Shareholder Preferences and Company Strategy

Pouyanne said that a large majority of shareholders have said they favoured standard returns over a special dividend, but this formula would ensure the company delivers on its payout pledge.

Political and Social Context

TotalEnergies' soaring profits this year have come under fierce criticism from some French lawmakers, prompting a heated debate in parliament on Wednesday on the company's taxation.

Consumer Benefits and Government Policy

Pouyanne said that French consumers were benefiting from a voluntary price cap implemented by the group at its fuel stations in the country since the war with Iran broke out, and that the government's decision not to tax windfall profits showed it recognised the merit of its policy.

(Reporting by Dimitri Rhodes in Gdansk. Editing by Dominique Patton)