A difficult period for the TotalEnergies group. While the company is in French government visorwith record earnings in the first half of 2022, the oil group has been a target since the start of the week the great social movement on wages. A tense situation, which contrasts with a significant discount on fuel for motorists and another payment of dividends for shareholders.

Record of dividends for shareholders of the group

It was in New York during an investor day that TotalEnergies CEO Patrick Poignant announced good news for shareholders. An interim dividend of 1 euro per share will be paid in December, i.e. in total $2.62 billion to shareholders. Therefore, the management of the group decided to give preference to its shareholders with this decision. After the announcement of record earnings in the first half of the year, the question of usage arose excess cash flow released by the group.

📍 Entrance #NYC 🍏 with @TotalEnergies EXCOM to present our Strategy and Energy Outlook ’22. Our investments here in 🇺🇸 in LNG and renewables contribute to the country’s development #EnergyTransition & strengthen #energy supply security around the world. https://t.co/mfujDd9sCN

— Patrick Pouyanne (@PPouyanne) September 28, 2022

Therefore, TotalEnergies will pay between 35 and 40% of this cash flow for its shareholders. The remaining amount will be used to buy back shares worth $7 billion.

Total also confirmed its desire to accelerate investments in renewable energy sources. The group will thus lead to 18 billion dollars per year of its investments in the low-carbon energy sector during 2022-2025. The group is also benefiting from its investments in renewable energy sources. They win in total additional revenue of $4 billion over the next five years, thanks in particular to the development of LNG.

TotalEnergies has been hit a few times, and there is currently no threat of a deficit

Despite the healthy financial situation, the climate at TotalEnergies remains tense. Since the beginning of the week, the trade unions have called for a general strike. They claim a Salary growth compared to 2022 by 10%., as well as the recovery of employment in France. Called from CGT not to remove any products from oil refineries and petrochemical plants where CGT is installed.” Thus, since the beginning of the week, the largest oil refinery in France near Havre has been blocked, which increases the threat of a possible shortage.

While Total’s management is reassuring and says it is committed to dialogue, the social climate remains tense. Another challenge for TotalEnergies, which is still under threat from a potential tax on excess profits demanded by the French government.