Total Energies has agreed to a deal in which Suncor Energy will purchase its Canadian oil sands operations for more than $4B, with potential additional payments of up to $450M.
This cash sale comes despite an announcement in February that it would spin off its operations and return the proceeds from the sale to shareholders while retaining a 30% stake in the company.
Total's board of directors saw the sale of the company to Suncor as "more straightforward in its execution than the planned spin-off."
- The French oil major's total adjusted net income of $6.5B was reported for the first quarter of 2023, which was lower than the $9B written for the same period in 2022 but still met analyst expectations.
- In addition to planning to repurchase $2B worth of shares in the second quarter, Total upped its first interim dividend for the year by 7.25%.
- Total intends to distribute roughly 40% of its 2023 operating cash flow to shareholders through a special dividend or share buybacks.
