(Adds fund manager comment and share price details)
By Sudip Kar-Gupta
PARIS, Sept 24 (Reuters) - French heavyweight oil and gas
group Total raised its dividend outlook on Tuesday
after issuing a positive forecast for its prospects through
2025, echoing moves by rival energy companies to boost
shareholder returns.
Total said it would increase its dividend by 5-6% per year,
up from a previous target of 3%, which would result in a third
interim dividend of 0.68 euros ($0.75) per share for 2019.
The group said its confidence in its general strategy meant
it was now forecasting an increase in its cash flow of more than
$5 billion by 2025 in a $60 per barrel oil price environment, or
an average increase of about $1 billion per year.
In June, rival Royal Dutch Shell also outlined
plans to boost shareholder returns after 2020.
Total's shares initially rose by around 1% but then slipped
back to fall 0.6%, tracking a retreat in oil prices which have
risen since an attack on Saudi oil facilities earlier this
month.
Nevertheless, Clairinvest fund manager Ion-Marc Valahu said
Total's update was a positive one for investors.
"Most oil majors have not raised their capital expenditures
in recent years but are still generating lots of cash, and the
stock prices of most oil companies have been lagging behind the
moves in the price of oil," said Valahu, who owns Total shares.
Oil prices have been comparatively elevated since the Sept.
14 attack on Saudi Arabia's largest crude processing facility
halved output in the world's top oil exporter, with benchmark
Brent crude currently near $64 a barrel.
In July, Total said it would sell about $5 billion of
assets, mostly from its exploration and production business as
it sharpens its focus on low-breakeven projects that can weather
any weakness in oil prices.
The company said it would maintain its "strong discipline on
investment and cost" in the period through 2025.
($1 = 0.9098 euros)
(Reporting by Sudip Kar-Gupta; Editing by Kim Coghill, Sherry
Jacob-Phillips and Jan Harvey)
