TotalEnergies, the French oil and gas giant, held a crucial meeting in New York to present its strategy in response to the recent drop in energy prices. This meeting, which brought together investors from both sides of the Atlantic, was marked by significant announcements regarding the company’s future plans.
TotalEnergies CEO Patrick Pouyanné revealed revised growth forecasts, targeting an increase in hydrocarbon production of more than 3% per year until 2030. This growth, mainly focused on liquefied natural gas (LNG), exceeds the previous estimates of 2 to 3% per year.
Willingness for Dual Listing and Board Support
In a major addition to its strategy, Patrick Pouyanné confirmed TotalEnergies’ willingness to obtain a dual listing on the New York Stock Exchange, in addition to Paris. He clarified that this project is “unanimously supported” by the board of directors, putting an end to internal division rumors. “Paris will remain the primary listing market for TotalEnergies shares,” he affirmed, emphasizing that the transformation of American Depositary Receipts (ADRs) into ordinary shares aims to simplify management for American shareholders and increase liquidity.
Pouyanné added that the group is already listed in New York and that the project is to convert ADRs, which currently represent 9% of the company’s capital, into ordinary shares. “We just want to transform the ADRs into ordinary shares,” he explained, citing simplification for American shareholders and the desire to increase liquidity. “It will not be a revolution,” he said, noting that technical aspects remain to be clarified, including necessary IT developments and cooperation with European and American authorities.
Expansion and Strategic Investments
In parallel, TotalEnergies announced net investments between 16 and 18 billion dollars annually for the period 2025-2030. Of this amount, approximately 5 billion dollars will be dedicated to low-carbon energy, thus reinforcing the group’s commitment to energy transition. However, the CEO specified that the company reserves the right to reduce its net investments by 2 billion dollars in the event of a significant price drop.
TotalEnergies’ strategy also includes securing LNG sales through long-term contracts, aiming to mitigate the impact of energy price fluctuations. This approach aims to stabilize the company’s revenues despite a volatile market.
Listing on Wall Street and Reactions
A central point of the presentation was the TotalEnergies project to list on the New York Stock Exchange. Announced last April, this project had sparked mixed reactions, particularly from French President Emmanuel Macron, who had requested clarifications. Patrick Pouyanné explained that it was a transformation of existing titles rather than a new primary listing, aiming to respond to the growing interest of North American investors.
Currently, 48% of TotalEnergies’ shareholding is made up of North American institutional investors, reflecting the American market’s appetite for fossil energy projects, despite increased European regulations favoring energy transition.
Reaction from the Board of Directors
The dual listing proposal on Wall Street, now unanimously supported by the board of directors, is still subject to some technical aspects. Patrick Pouyanné mentioned the need to develop IT infrastructure and work with European and American authorities to finalize the project. This strategic decision could influence the group’s perception on the international market and facilitate access to new capital.
Outlook and Challenges Ahead
Despite the current challenges linked to falling energy prices, TotalEnergies is positioning itself to maintain stable growth through its strategic investments and energy diversification. The company also plans to buy back 8 billion dollars of shares in 2024, a measure that could be impacted by discussions in France on the taxation of share buybacks.
The year 2024 could mark a return to normal for TotalEnergies after record profits in 2022 and 2023, generated in part by the global energy crisis. The group’s ability to navigate this uncertain economic context will be crucial for its future success.
