TotalEnergies strategy day has reinforced our conviction in its equity story, giving us stronger confidence in the Buy rating. The company will pay around 44% of FY23 CFFO to shareholders and set guidance at 40% from this year onwards. 2-3% annual growth in oil and gas output until 2028 will bring at least $3bn in operating cash flow. Albeit an ambitious ROACE target for integrated power at 12%, the business model will ensure an additional $2bn cash flow by 2028.
