TotalEnergies
Note: This is a daily stock update and the information stands true as of 02/12/25, 09:00 CET.
Company Update:
Expert Opinion:
This isn't good news. Total's stake in the project is likely to increase from 26% to c37%. This will increase the risk profile of the group. Our expert still likes the sector overall and Total in particular despite that. Total recent performance was good despite the adverse move in crude. Still a stock to buy and hold in our expert's opinion, as valuation continues to be attractive (PE25 at 9.2x and Dividend yield around 6.5%).
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Company Update:
Mozambique LNG suffered a new setback with the withdrawal of the UK and the Netherlands, via their public export credit agencies, removing $2.2bn of support, close to 10% of total project financing. This decision follows the accusations targeting TotalEnergies in ongoing procedures related to alleged human rights and security breaches in Cabo Delgado, where the group holds a 26.5% stake.
To offset this, TotalEnergies is prepared to rely on its balance sheet and recent divestments, notably mature upstream assets in Africa and the North Sea, as well as minority stakes in renewables. The project remains more than 70% financed, with around 90% of future production already contracted.
From a market perspective, TotalEnergies has the financial strength to absorb the impact thanks to its solid balance sheet and strong cash generation. However, the political snub from two European states sends a negative reputational signal, slightly weighing on market sentiment.
Expert Opinion:
This isn't good news. Total's stake in the project is likely to increase from 26% to c37%. This will increase the risk profile of the group. Our expert still likes the sector overall and Total in particular despite that. Total recent performance was good despite the adverse move in crude. Still a stock to buy and hold in our expert's opinion, as valuation continues to be attractive (PE25 at 9.2x and Dividend yield around 6.5%).
For daily updates, subscribe to our newsletter and for detailed information, reach out to us at sales@alphavalue.eu
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