TotalEnergies Chief Executive Patrick Pouyanné stated on Wednesday that the European Union is likely to drop its planned sustainable aviation fuel (SAF) requirement, drawing a parallel with the bloc’s recent decision to shelve its 2035 ban on new combustion-engine car sales. Pouyanné highlighted that legislators face mounting resistance over mandated feedstock sourcing and cost pass-throughs to airlines. TotalEnergies currently plans to expand its SAF production capacity to 1.2 million tonnes per year by 2030 through investments in biokerosene units at its Antwerp and Leuna refineries. If the EU withdraws its SAF blending target, the company may reallocate up to €500 million earmarked for SAF projects toward low-carbon hydrogen and advanced biofuels.

In its latest operational update, TotalEnergies reported a 5.3% year-on-year increase in liquids and gas output, reaching 3.15 million barrels of oil-equivalent per day in the fourth quarter. The company attributed the rise to new wells in the North Sea and accelerated ramp-up at the Mozambique liquefied natural gas (LNG) site. Management reiterated its guidance for 3% annual production growth through 2026 and confirmed a full-year capital expenditure envelope of €16.5 billion, split roughly equally between upstream development and energy transition projects. TotalEnergies also forecasts a 7% jump in its proprietary power generation sales, driven by accelerating electric-vehicle adoption in Europe and new data-center contracts in North America.

The Large Cap International Portfolio disclosed a 57.5% reduction in its TotalEnergies shareholding last week, selling 10,871 shares and retaining 8,024 shares valued at approximately €470,000. The move follows the fund’s rebalancing effort to reduce energy-sector exposure after a period of sector outperformance. While the current stake represents less than 0.02% of TotalEnergies’ free-float, the divestment highlights growing caution among some global portfolio managers regarding near-term oil-price volatility and regulatory uncertainty in European markets.