Total SA announced it will reduce share buybacks and intensify cost-saving efforts after a decline in oil prices impacted its fourth-quarter performance. The French energy major is aiming to increase production of hydrocarbons and electricity while controlling expenditures. This comes as oil giants prepare for a period of softer prices and face increased investor scrutiny of their balance sheets.

On Wednesday, Total SA stated it would halve its quarterly buyback program to $750 million, with a full-year plan to repurchase between $3 billion and $6 billion worth of shares. Last year, the company's total buybacks amounted to $7.5 billion. The company had previously indicated it would slow the pace of buybacks to maintain flexibility amid economic and geopolitical uncertainty.

This move follows BP's decision to pause its share repurchases as part of a broader strategy to reduce its substantial net debt. In contrast, Exxon Mobil and Shell recently expressed intentions to maintain share buyback rates consistent with last year, highlighting divergent approaches among major oil companies in responding to current market conditions.

Total SA also increased its savings target to $12.5 billion for the 2026-2030 period, including $2.5 billion for this year. In September, the company had projected savings of $7.5 billion over the same timeframe.

For the three months ending December 31, Total SA's net profit fell 21% from the previous quarter to $2.91 billion. This result fell short of the $3.785 billion average analyst estimate compiled by Visible Alpha. Adjusted net profit, however, was largely in line with expectations.

Adjusted earnings from its upstream segment declined 17% quarter-on-quarter to $1.81 billion. Meanwhile, earnings from its integrated liquefied natural gas division were supported by the restart of its Ichthys facility in Australia, which offset a 5% drop in prices.

The downstream segment reported a 26% jump in adjusted earnings to $1.3 billion, driven by a more than 30% increase in European refining margins.

Total SA declared a final dividend of €0.85 per share, bringing the full-year payout to €3.40 per share, a 5.6% increase.

The company's oil and gas production for the fourth quarter rose nearly 5% year-on-year to 2.545 million barrels of oil equivalent per day.

Total SA plans to grow its total energy output, including oil, gas, and power, by 5% by 2026. Oil and gas production is expected to increase by 3%, supported by project start-ups in Brazil, Qatar, and Algeria. Power output is projected to grow by approximately 25% by 2026, following the completion of a deal to acquire a 50% stake in a portfolio of power assets from Energeticky a Prumyslovy Holding.

The company expects to invest around $15 billion in 2026, with roughly $3 billion allocated primarily to its power division.

In mid-morning European trading, Total SA's shares were up 1.5% at €63.48.