TotalEnergies's Strategy After Russia, Shareholder Returns to Come Into Focus at Investor Day -- Preview
September 27 2022 - 10:42AM
Dow Jones News
By Giulia Petroni
TotalEnergies SE is hosting an investor day on Wednesday. Here's
what to watch:
STRATEGY AND RUSSIA: Management is expected to provide an
updated strategy plan for a possible future without Russia in the
picture, but uncertainties linger as the French major stopped short
of announcing a full exit. "We don't expect TTE to change its
stance... and remain wary around the potential for asset
expropriation, and the impact it could have on TTE's LNG
portfolio," RBC Capital Markets' Biraj Borkhataria says. Meanwhile,
analysts at Credit Suisse say that by not committing to new capital
to the country, the company may have lost some flexibility on the
delivery of long-term objectives.
SHAREHOLDERS REMUNERATION: TotalEnergies may look at rebasing
its dividend to U.S. dollars rather than euros to better align its
payout with its functional currency, according to analysts. "Given
the company's financial framework is USD-based, we think this makes
sense and could imply a 10%-15% increase to get the overall
dividend back to around $8 billion per annum," says RBC's
Borkhataria.
CAPITAL EXPENDITURE: CS analysts foresee the oil-and-gas company
keeping this year's capex guide at the top of the $13 billion-$16
billion range in order to address the energy crisis with
short-cycle projects and accelerate the transition away from fossil
fuels. Guidance on capex could be pressured by inflation across the
hydrocarbon and low carbon value chains, according to RBC.
Write to Giulia Petroni at giulia.petroni@wsj.com
(END) Dow Jones Newswires
September 27, 2022 10:27 ET (14:27 GMT)
Copyright (c) 2022 Dow Jones & Company, Inc.
TotalEnergies (EU:TTE)
Historical Stock Chart
From Apr 2024 to May 2024
TotalEnergies (EU:TTE)
Historical Stock Chart
From May 2023 to May 2024