TotalEnergies Mulls Primary New York Listing to Expand U.S. Shareholder Base

TotalEnergies CEO, Patrick Pouyanne, disclosed plans for a potential New York listing during an analyst briefing on Friday, citing the desire to attract a larger share of U.S. investors. With 47% of institutional shareholders and 39% of global investors based in the United States, TotalEnergies (TTEF.PA) aims to strategically position itself within the American financial landscape.

While a definitive decision awaits board deliberations, Pouyanne emphasized the importance of adapting to investor preferences, especially in light of market dynamics impacting stock performance.

“There’s a case,” for moving the listing, Pouyanne told Bloomberg’s Javier Blas in an interview. “It’s not emotional. It’s business. We are facing a situation where European shareholders, either they sell or maintain, and US shareholders are buying. So what is the most convenient for US shareholders? Do they prefer to have the shares being primarily listed in New York or in Europe? I think when you ask the question, you have the answer.”

Pouyanne added that if Total was to list in New York, its headquarters would remain in Paris.

The proposed listing, if pursued, could augment TotalEnergies' existing presence on European exchanges—or it could replace it. Pouyanne indicated that the company would present a comprehensive evaluation to the board by September, signaling a proactive stance toward enhancing shareholder value. Against the backdrop of recent market fluctuations influenced by economic growth concerns and inflation trends, TotalEnergies' strategic move underscores its commitment to fostering investor confidence and maximizing shareholder returns.

As discussions unfold, industry observers await insights into TotalEnergies' potential dual-listing strategy and its implications for global market dynamics.

The French energy giant posted Q1 earnings on Friday showing a 22% decline, mostly due to falling profits from natural gas. Total also warned that rising crude oil prices could drag down refining margins in Q2. This comes after a profitable 2023, with the company’s return on average invested capital reaching 19%--and spending $17 billion on new, mostly oil and gas, projects.

By Julianne Geiger for Oilprice.com

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