Energy major set to sell Canada business to Suncor
Will get 4.1 bln in cash, possible 450 mln extra payment
Adj net income for Q1 6.5 bln, in line with forecasts

PARIS, April 27 Energy major TotalEnergies said on Thursday it had accepted an offer to sell its carbonheavy Canadian oil sands operations to Suncor Energy for 4.1 billion, with potential additional payments of up to 450 million.

The company initially planned to spin off the business but said the sale to Suncor would be more straightforward and the price tag was comparable to its own valuations for a listing of the business.

Taking into account the sale, which should close by the end of the third quarter, it plans to distribute at least 40 of the cash flow generated this year to shareholders through a share buyback or special dividend.

TotalEnergies said its firstquarter adjusted net income fell 27 to 6.5 billion in line with analyst expectations due to lower energy prices.

It is sticking with plans for a share buyback of up to 2 billion in the second quarter, as it did in the first quarter. It also confirmed it expected net investments of 1618 billion this year, including 5 billion for lowcarbon energies.

After European refining capacity was hampered by French strikes in the first quarter, TotalEnergies anticipates its facilities will ramp back up above 80.

Margins on refining diesel, however, will drop as Chinese exports increase and energy from Russia finds new buyers to replace the Western…