TotalEnergies' Windfall: $689M Seagreen Stake Sale Ignites Renewables Partnership In Thailand

TotalEnergies SE TTE penned a deal with the national oil and gas company PTTEP in Thailand for divestiture of a 25.5% equity stake in the Seagreen offshore wind farm for £522 million ($689 million). 

The deal implies an enterprise value of $4.3 billion (100%), equivalent to a multiple of 13 times the expected average EBITDA over the next 5 years, depending on future market prices.

The transaction is at par with TTE's renewables business model. Post deal closure, TTE will have a 25.5% stake in Seagreen, while PTTEP will have 25.5% and SSE Renewables 49%.

Seagreen wind farm, which has a total capacity of 1,075 MW, is the world's deepest fixed-bottom wind farm and has 114 turbines capable of offering enough electricity to power over 1.6 million homes (equivalent to two-thirds of all homes in Scotland).

Apart from the sale deal, TTE and PTTEP penned a Memorandum of Understanding to explore joint opportunities for the development of renewable energies.

Patrick Pouyanné, Chairman and CEO of TotalEnergies, said, "This transaction is a new milestone in the implementation of our transition strategy and will contribute to reaching our 12% profitability target in Integrated Power business."

The transaction is projected to be complete following receipt of applicable governmental and regulatory approvals.

Also See: TotalEnergies' Texas Solar Power: Strikes 275 MW Green Electricity Deal With LyondellBasell

Price Action: TTE shares closed higher by 1.79% at $68.40 on Thursday.