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TotalEnergies Stock Dips Amid Strategic Moves and New Partnerships

Mover TrackerMonday, Dec 16, 2024 5:33 pm ET

1min read

In a recent market shift, TotalEnergies (TTE) observed a significant decline of 3.15% on December 16, marking a consecutive five-day drop with a total decrease of 5.95%. The company's stock price hit its lowest since October 2022 during this period.

Amid these market fluctuations, TotalEnergies has entered into a significant joint development and cost-sharing agreement with Saudi Aramco and the Saudi Investment Recycling Company (SIRC). This collaboration aims to evaluate the establishment of a sustainable aviation fuel (SAF) production facility in Saudi Arabia. The partners plan to harness their expertise to transform local residues, such as used cooking oils and animal fats, into sustainable fuel.

Patrick Pouyanné, Chairman and CEO of TotalEnergies, expressed enthusiasm for the partnership, emphasizing the collective expertise driving the decarbonization of the aviation sector. SAF is central to TotalEnergies' transformation strategy as it supports the aviation industry's need to reduce carbon emissions. Pouyanné added that this initiative aligns with TotalEnergies' multi-energy strategy, which supports the energy transition of oil and gas-producing nations. The proposed SAF production project aligns with Saudi Arabia's Vision 2030 and its green initiatives.

Concurrently, TotalEnergies has announced the acquisition of Germany-based renewable energy developer VSB Group from Partners Group for €1.57 billion, including equity value and shareholder loans. VSB Group, with substantial industry experience, operates 475 MW of capacity and holds a substantial project pipeline in renewables across Germany, Poland, and France. This acquisition will bolster TotalEnergies' presence in Germany and augment its renewable portfolio, complementing its recent acquisitions and offshore wind projects in northern Germany.

Additionally, TotalEnergies has divested 50% of its stake in a Texas-based 2 GW solar and 300 MW battery storage project, generating $800 million. This move aligns with TotalEnergies' strategy to optimize asset management while securing funds for future growth.

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