PARIS (Reuters) – French energy group Total has agreed to sell off stakes in some wind and solar farms to Credit Agricole Assurances and Banque des Territoires, in deals which Total said would boost its cash flow and return on equity.
Total said on Tuesday that Crédit Agricole Assurances would buy a 50% stake in nine wind farms (103 MW) and 44 solar power plants (182 MW) for a total capacity of 285 MW.
Banque des Territoires would buy a 50% stake in a portfolio consisting of eight solar farms located in New Caledonia with a total capacity of 53 MW, with the deals giving 100% of the portfolios an enterprise value of $600 million.
“These farm downs are the implementation of the business model we have defined for the development of renewable energies aiming to achieve over 10% return on equity,” said Julien Pouget, senior vice president of Total’s renewables unit.
Earlier this month, Total reported better than expected fourth quarter earnings as oil prices stabilised, and said it would change its name to TotalEnergies to reflect its move towards the renewable energy sector.
Total is building up a portfolio in the renewables and electricity sectors that could account for up to 40% of its sales by 2050, while also eyeing opportunities for divestments which could increase its cash flow and return for investors.
(Reporting by Sudip Kar-Gupta, editing by Louise Heavens)
