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TotalEnergies (TTE) Arm Partners Mighty Distributing System

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TotalEnergies SE (TTE - Free Report) announced that its unit Total Specialties USA has entered into a partnership with Mighty Distributing System (Mighty Auto Parts) to sell lubricants, mainly for light vehicles. TotalEnergies’ Quartz Ineo & Quartz 9000 ranges will be available in the Mighty network and the companies might consider making other lubricant ranges available in the distribution network.

The Quartz Ineo and Quartz 9000 Energy lubricants have been developed after research and have a unique combination of hyperactive molecules that create a strong thick oil film on all concerned engine parts. These lubricants protect engines against a variety of challenges, from wear to oil oxidation even at extreme temperatures and outstanding engine performance, even under frequent stop and start conditions.

How TotalEnergies Gain From the Deal?

IHS Markit Automotive forecasts global light vehicle production to grow 14% in 2021 and North America output to increase 24% year over year. Light vehicle market turnaround is a welcome change after the devastating impact of COVID-19 lowered global light vehicle production by 14 million units in 2020.

TotalEnergies is poised to benefit from this new partnership with Mighty Auto Parts, as its lubricants will be available across the United States and five international markets. The reopening of economic activities and rising production of light vehicles will create demand for TotalEnergies’ high-quality lubricants and boost its performance.

TotalEnergies’ Mission to Lower Emission

TotalEnergies strives to be a net-zero carbon emission company by 2050 and has taken the necessary steps to achieve the target. Globally, it is among the largest producers of LNG and has significant presence in the entire value chain of LNG. The company expects LNG usage to increase globally, which will aid in emission reduction.

TotalEnergies is gradually expanding presence in the transportation space and doing its part to cut emissions from the mobility space. With more users showing interest is using electric vehicles (EVs), TotalEnergies in working to develop EV charging infrastructure in Europe. It has plans to install more than 150,000 electric vehicle charge points by 2025 in Europe.

TotalEnergies recently partnered with Veolia Environnement S.A. (VEOEY - Free Report) for the development of microalgae at the La Mèdebiorefinery, with the long-term objective of producing biofuel. Biofuel produced by TotalEnergies will be utilized by customers and assist them in reducing their carbon footprint, thereby contributing to TotalEnergies’ ambition of achieving carbon neutrality by 2050.

TotalEnergies is gradually building the clean electricity generation portfolio. The acquisition of SunPower Corporation (SPWR - Free Report) has been enabling the company to expand solar operations since 2011. It now plans to scale up renewable generation capacity to 25 GW by 2025. TOTAL also targets to generate 40% of revenues in 2050 from low-carbon electricity sales.

TotalEnergies is among the global oil and gas majors focused on lowering emissions. We have seen an increasing usage of clean renewable energy and urge among energy majors to cut emission levels. Chevron Corporation (CVX - Free Report) is one of the oil and gas majors investing heavily in the renewable energy space.

Price Performance

In the past year, TotalEnergies’ shares have underperformed the industry.

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Zacks Rank

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