TotalEnergies announced on Wednesday that it will reduce its first-quarter share buybacks by 62 per cent, as low oil and gas prices offset strong fourth-quarter profits from fuel refining and gains from selling stakes in renewable assets.

The French energy giant reported fourth-quarter adjusted net income of $3.8 billion (3.2 billion euros), down from $4.4 billion a year earlier and slightly below analysts’ expectation of $3.9 billion, according to LSEG data.

TotalEnergies said it will cut its first-quarter share buybacks to $750 million, following similar steps by peers—BP, which fully halted buybacks, and Equinor, which slashed them by 70 per cent, according to Reuters.

The move aligns with the lower end of the company’s September guidance, which had warned of reduced buybacks amid falling oil prices and uncertain geopolitical conditions.

Since mid-2022, when Brent crude topped $100 per barrel, TotalEnergies had maintained buybacks at roughly $2 billion per quarter, repurchasing $1.5 billion in shares in the fourth quarter.

Speaking to pressmen, CEO Patrick Pouyanné said beginning at the lower end of the range allows the company to increase buybacks later “if market conditions favour it.”

TotalEnergies’ shares rose 1.6 per cent at 0855 GMT.

The company increased oil and gas production in the fourth quarter to offset a 15 per cent decline in Brent crude prices and an 18 per cent drop in liquefied natural gas prices.

Production grew 5 per cent during the quarter, but income from its exploration segment still fell 21.6 per cent to $1.8 billion.