Why Is TotalEnergies Stock Trading Lower On Wednesday?

TotalEnergies SE TTE shares are trading lower on Wednesday after the company disclosed that it has agreed with HitecVision, a Norwegian energy investment firm, to sell a 50% stake in Polska Grupa Biogazowa (PGB) for an enterprise value of 190 million euros ($213 million).

PGB is the leading biogas producer in Poland, with 20 operational units and a production capacity exceeding 450 GWh of equivalent biomethane.

Notably, PGB was acquired by TotalEnergies in 2023 and operates biogas plants that produce electricity and heat through combined heat and power (CHP).

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PGB currently has two plants under construction in Poland and plans to expand into biomethane production, aiming for a total equivalent biomethane production capacity of 2 TWh by 2030.

Stéphane Michel, President of Gas, Renewables & Power at TotalEnergies, said, “This transaction will enable PGB to continue its growth in a country where biogas is rapidly developing and is in line with the farmdown business model applied to our renewable assets in order to maximize the profitability of our investments.”

Erlend Ellingsen, CEO and Managing Partner of HitecVision, added, “Biogas and biomethane is a core focus for HitecVision’s New Energy Program, and Poland represents a unique market opportunity to pursue profitable growth while contributing to the decarbonization of Poland and the EU.”

“TotalEnergies has a well-established industrial footprint in Poland, and we as partners have complementary skillsets that we jointly will put to use for scaling PGB significantly over the next few years through greenfield projects as well as M&A.”

In April, the company reported first-quarter adjusted EPS of $1.83, down 15% year over year (Y/Y), and missed the consensus of $1.88, and sales of $52.25 billion topped the consensus of $44.91 billion.

Investors can gain exposure to the stock via FT Energy Income Partners Strategy ETF EIPX and First Trust Exchange-Traded Fund VIII FT Energy Income Partners Enhanced Income ETF EIPI.

Price Action: TTE shares are down 0.92% to $59.35 at the last check on Wednesday.

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