Shares of TotalEnergies SE (TTE) were ticking higher in premarket trading Thursday. The reason? The energy giant is officially kicking off France's era of advanced plastic recycling.
This isn't your neighborhood bottle drop-off. TotalEnergies has started production at the country's first plant dedicated to turning the really tough plastic waste—the stuff that usually ends up in a landfill or an incinerator—into something useful again. It's a concrete step in the company's bigger plan to transform its Grandpuits refinery southeast of Paris into what it calls a "zero-crude platform." Think of it as a refinery getting a green-tech makeover.
From Waste to Feedstock
The new facility has the capacity to process 15,000 tons of plastic waste per year. The magic happens through an innovative recycling technology that breaks down this stubborn plastic into synthetic oil. This oil isn't for burning in engines; it becomes a petrochemical feedstock. That means it can be used to make brand-new recycled plastics that are high-quality enough for sensitive uses like food packaging and medical applications.
To keep the plant fed, TotalEnergies didn't wait until the ribbon-cutting to figure out the supply chain. Back in 2023, it partnered with recycling specialists Citeo and Paprec to secure a steady stream of plastic waste. Valérie Goff, Senior Vice President of Renewables, Fuels & Chemicals at TotalEnergies, framed the startup as a milestone. "Alongside Plastic Energy, contributing its technology, and our partners Citeo and Paprec, we are supporting the emergence of a brand-new French plastic recycling activity," she said.
A Busy Week for Energy Projects
The recycling news wasn't the only project update from TotalEnergies this week. The company also announced it started production at the Quiluma offshore gas field in Angola. This is its first major project focused on non-associated gas (gas that isn't found with oil) and is expected to produce about 330 million cubic feet per day. That gas will supply Angola's LNG plant, ultimately supporting exports to markets in Europe and Asia. It's a reminder that while the company invests in new, circular economies for plastics, it's also actively developing traditional energy resources.
What the Market Is Saying
While the broader market took a step back on Wednesday, TotalEnergies' shares moved in the opposite direction, suggesting investors are focused on the company's specific news. A look at the charts shows some serious momentum. The stock is trading 10.2% above its 20-day simple moving average and a whopping 27.4% above its 100-day average. Over the past 12 months, shares have climbed 35.25%, sitting much closer to their 52-week highs than their lows.
Analysts have taken notice. The stock currently carries a consensus Hold rating with an average price target of $70.40, but there's been some notable recent action. Piper Sandler raised its target to $92 in March, and more significantly, JP Morgan upgraded the stock to Overweight in early March. TD Cowen also raised its target in January, albeit maintaining a Hold rating.
The company's next scheduled earnings update is estimated for April 29, 2026. Current estimates project earnings per share of $1.83 (flat year-over-year) on revenue of $43.83 billion. The stock trades at a P/E ratio of about 15.0x, which many view as a fair valuation for a major integrated energy company.
ETF Exposure and Trading Action
For ETF investors, TotalEnergies is a meaningful piece of several portfolios. It carries a 2.86% weight in the SPDR EURO STOXX 50 ETF (FEZ) and a 2.77% weight in the SPDR S&P Global Natural Resources ETF (GNR). This exposure is important because significant inflows or outflows from these funds can force automatic, mechanical buying or selling of TTE shares to maintain the fund's target weights.
Putting it all together, the market's initial reaction was positive. According to market data, TotalEnergies shares were up 2.67% at $89.22 during Thursday's premarket session.
