TotalEnergies is sticking to plans for both investor payouts and project investment despite a profit miss and a weak outlook for oil markets.
Citing its low levels of debt and the strength of its balance sheet, the French energy giant said in a market update this morning that it would repurchase another £1.5billion of shares in the second quarter and stuck to its plan for a 7.6% dividend increase this year. It also maintained its target for capital expenditure.
Despite weaker oil markets, Chief Executive Officer Patrick Pouyanne said in a statement that he was “confident in the company’s ability to reach its 2025 underlying growth objective, taking into account the strength of its balance sheet.”
TotalEnergies shares fell 2.7% to €50.93 as of 9 a.m. in Paris.
Many oil companies are curbing spending as they brace for lower earnings amid President Donald Trump’s disruption of the global economy. BP and Eni both trimmed their capital expenditure and warned of the possibility for a further slowdown in industry activity.
TotalEnergies’ adjusted net income was $4.19 billion in the first quarter, down from $5.11 billion a year earlier, the company said on Wednesday. Analysts had expected $4.38 billion.
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Brent crude oil futures were down 0.82% trading at $63.43 a barrel.