Electricity & Gas: Total Becomes One of the Leading Suppliers in Spain
May 18 2020 - 2:50AM
Dow Jones News
Regulatory News:
Total (Paris:FP) (LSE:TTA) (NYSE:TOT) strengthens its positions
in generation and supply of electricity and gas in Spain through
the acquisition of the Energías de Portugal's portfolio of 2.5
million B2C customers and two gas-fired combined cycle power
plants, which represent an electricity generation capacity of
nearly 850 megawatts.
This transaction in Spain follows Total's entry into the
country's solar market in February with the acquisition of a
portfolio of almost 2 gigawatts of renewable power projects to be
developed. It allows the Group to implement its growth strategy in
the country's integrated gas and electricity value chain and
notably to:
-- enter the Spanish B2C market and become the 4th largest supplier of gas
and power in the country with residential market share of 12% and 6%
respectively.
-- complement its future production of renewable electricity, which is
intermittent, with flexible electricity generation capacities from gas.
This deal serves Total's ambition to achieve Carbon Neutrality
by 2050 for its worldwide business across its production and energy
products used by its customers, and to play a major role in the
energy transition in Europe, Spain being among the first countries
to have adopted an objective of Carbon Neutrality by 2050.
"This is a major new step in Total's ambition to become a broad
energy company. This transaction enables Total to become one of the
key players in the energy market in Spain, covering a wide spectrum
from LNG imports to power generation from renewables and gas, as
well as gas and electricity supply. Our ambition is to be able to
bring a competitive offer from our productions to the Spanish
consumers, drawing on the digital and commercial know-how developed
in France by Total Direct Energie and in Belgium by Lampiris," said
Patrick Pouyanné, Chairman and CEO of Total. "This transaction is
fully consistent with the Group's strategy of profitable growth
across the gas and low carbon electricity value chain in Europe, in
line with our new ambition to get to Net Zero Emission by 2050.
With this deal Total will reach 8.5 million gas and power customers
in Europe from 2021, on track with its ambition to serve over 10
million customers by 2025".
The transaction with EDP is based on an enterprise value of
EUR515 million. It remains subject to conditions precedent,
including regulatory approval and should be finalized before the
end of 2020. The portfolio of around 2.5 million residential
contracts is composed of around 2.1 million held by EDP
Commercializadora (100% EDP) and around 0.4 million by CHC, a joint
venture between EDP and CIDE, the latter transaction being subject
to CIDE agreement. Upon closing, EDP will transfer to Total the 280
employees managing the activities acquired.
About Total
Total is a broad energy Group that produces and markets fuels,
natural gas and low-carbon electricity. Our 100,000 employees are
committed to better energy that is safer, more affordable, cleaner
and accessible to as many people as possible. Active in more than
130 countries, our ambition is to become the responsible energy
major.
* * * * *
Cautionary Note
This press release, from which no legal consequences may be
drawn, is for information purposes only. The entities in which
TOTAL S.A. directly or indirectly owns investments are separate
legal entities. TOTAL S.A. has no liability for their acts or
omissions. In this document, the terms "Total", "Total Group" and
Group are sometimes used for convenience. Likewise, the words "we",
"us" and "our" may also be used to refer to subsidiaries in general
or to those who work for them.
This document may contain forward-looking information and
statements that are based on a number of economic data and
assumptions made in a given economic, competitive and regulatory
environment. They may prove to be inaccurate in the future and are
subject to a number of risk factors. Neither TOTAL S.A. nor any of
its subsidiaries assumes any obligation to update publicly any
forward-looking information or statement, objectives or trends
contained in this document whether as a result of new information,
future events or otherwise.
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https://www.businesswire.com/news/home/20200517005086/en/
CONTACT: Total
Media Relations: +33 1 47 44 46 99 l presse@total.com l
@TotalPress
Investor Relations: +44 (0)207 719 7962 l ir@total.com
SOURCE: Total
Copyright Business Wire 2020
(END) Dow Jones Newswires
May 18, 2020 02:35 ET (06:35 GMT)
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