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TOTAL's Unit SunPower Spins Off Maxeon Solar Technologies

TOTAL SE TOT announced that its unit, SunPower Corporation SPWR has completed the spin-off of Maxeon Solar Technologies (MAXN) into a separate entity. The new entity will be focused on the development of the solar panel technology. After this spin-off, SunPower will primarily concentrate on the North American distributed generation and storage market.

Shareholding Post Spin-off

TOTAL will continue to be the major shareholder of SunPower with a 51.7% shareholding. It will have a 34.6% shareholding in the new company, Maxeon Solar Technologies. So, this spin-off in a way will benefit TOTAL and expand its reach in the solar energy business, as SunPower and Maxeon Solar Technologies will now concentrate in two different areas.

Tianjin Zhonghuan Semiconductor Co., Ltd., a long-term partner of SunPower, is acquiring 28.848% shares of Maxeon Solar Technologies through a $298-million equity investment. The investment will aid Maxeon Solar to increase the production of high-quality Maxeon® 5 premium solar panels.

TOTAL’s Focus on Clean Energy

TOTAL is gradually building the clean electricity generation portfolio. It has also made strategic acquisitions, tie-ups and entered into JVs to expand the renewable portfolio. The company now plans to scale up the renewable generation capacity to 25 gigawatts (GW) by 2025. TOTAL also targets to generate 40% of revenues in 2050 from low-carbon electricity sales.

It also strives to be a net-zero carbon emission company by 2050 and has been taking steps to achieve the target. The company has maintained its planned investment in the range of $1.5-$2 billion annually in low-carbon electricity generation.

Renewable Energy Usage

Per the finding of the International Energy Agency (“IEA”), global addition of renewable energy projects in 2020 will decline 13% from 2019, primarily due to the impact of the pandemic. However, IEA also projects that the addition of renewable projects will increase in 2021 as the majority of the delayed projects of 2020 are expected to come online next year and lead to a rebound in capacity addition.

The renewable energy space will offer enough growth opportunities to investors. In addition to TOTAL, oil and gas companies like Chevron Corporation CVX, and Royal Dutch Shell Plc RDS.A , among others, are also investing heavily in the renewable energy space.

Price Performance

In the past three months, TOTAL’s shares have outperformed the industry.

Zacks Rank

TOTAL currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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