(Reuters) – Totalenergies announced on Monday during its investor day the implementation of an savings program (“cash Savings program”) of $ 7.5 billion (6.39 billion euros) over the period 2026-2030.

The energetician, who seeks to reassure in the face of the slowdown in assets and the increase in debt, also plans to reduce his annual investments by $ 1 billion per year compared to the previous guidance.

The oil and gas group has confirmed its objective of increasing its energy production by around 4% per year until 2030, but said it predicts net investments of approximately $ 16 billion in 2026 and $ 15-17 billion per year on 2027-30.

Last week, Totalenergies also announced its intention to reduce the pace of quarterly action buybacks in order to adapt to the drop in oil prices.

“We can achieve the same growth but with fewer capex and Opex,” said Patrick Pouyanne, Chairman and Chief Executive Officer of Totalnergies, to investors.

Totalnergies “intends to concentrate its investments in upstream growth projects with high margin and remain selective on low-carbon investments”, according to a press release, which stresses that low-carbon investments will represent approximately $ 4 billion per year, including 3 to 4 billion dollars per year for Integrated Power.

The group provides that Interated Power will be “net cash” from 2028 and will reach a profitability (roace) of 12 % by 2030.

Series of Operations

Earlier Monday, Totalenergies announced the sale of 50% of an asset portfolio in solar in North America and an investment in natural gas production assets in the United States.

While other energy majors reduce their investments in renewables, Totalnergies has taken the opposite view by continuing the development of wind and solar projects, then ceding minority interests in order to identify liquidity that it reinvested in gas assets to increase its portfolio as global demand increases.

As part of this transaction, the KKR investment company will take 50% of a 1.4 GW solar asset portfolio in North America, for which Totalenergies will receive $ 950 million after finalization, according to a press release.

This operation is part of a series of operations including PDF, Patrick Pouyanné, said that they should bring in $ 3.5 billion by the end of the year, in order to balance the $ 3 billion in acquisitions.

Totalnergies also announced on Monday that it had signed an agreement with Continental Resources to acquire a participation of 49% in natural gas production workers detained and operated by the American group in the Anadarko basin, in the state of Oklahoma in the United States.

Struggle for the sale of assets

Last week, Totalenergies sold a participation in an oil field in Shell for $ 510 million, but two other transactions are threatened.

An assignment of Nigerian petroleum assets for an amount of $ 860 million failed last week, the buyer Chappal Energies has failed to bring together enough funds.

In July, the sale of Totalnergies gas assets west of the Shetland Islands, in Great Britain, for an uncompromising amount, also failed after the bankruptcy of the PRAX Group potential buyer.

Total’s debt ratio, a measure of net debt compared to equity, jumped at 18%, against around 8% in the first six months of the year. This figure reaches 28% if we take into account the $ 8.9 billion in rental contracts and 9.75 billion euros in hybrid debt. The quarterly profit has reached its lowest level in four years this summer.

RBC analysts described modest changes announced on Monday as modest, adding that Total could have trouble maintaining its debt rate below 20% if the prices of raw materials do not remain close to the current levels.

The Totalenergies title fell by around 2% after the announcements, while the British barrel was negotiated at less than $ 70, down 40% since 2022, when Totalenergies launched its annual buyout program of $ 8 billion.

(Report America Hernandez in Paris, with Alessandro Parodi in Gdansk and Shadia Nasralla in London, written by Elena Smirnova, edited by Augustin Turpin and Kate Entringer)

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