TotalEnergies plans to raise its oil and gas output by 2.5% in 2026, targeting a 200,000 barrels-of-oil-equivalent-per-day increase to soften the impact of a 12% slide in average realized crude prices over the past year. The company’s upstream division expects higher volumes from recently sanctioned projects in West Africa and the North Sea, while downstream margins remain under pressure from global refining overcapacity. To diversify earnings, TotalEnergies is accelerating investments in power generation, projecting a 4% annual rise in electricity demand driven by the proliferation of electric vehicles and AI data centers. The firm has earmarked €3.5 billion for solar and battery storage projects over the next 18 months, aiming to add 5 GW of renewable capacity by the end of 2027 without cutting its dividend this cycle.

Large Cap International Portfolio disclosed that it sold 10,871 shares of TotalEnergies during Q4, reducing its holding by 57.53% from 18,895 shares to 8,024 shares. The sale follows a review of regional exposure and comes after the fund trimmed positions in energy names averaging a 7% reduction across the sector. Despite the disposal, the remaining stake is valued at approximately €435,000 based on the most recent reported NAV. Portfolio managers cited concerns over near-term cash flow volatility from refining margins and disciplined capital allocation as reasons for the cut, even as TotalEnergies maintains an investment-grade credit rating and a payout ratio below 60%.