Should TotalEnergies’ (ENXTPA:TTE) 21-Year Malaysian Solar Deal With Google Prompt Investor Action?

• TotalEnergies and Google previously signed a 21-year Power Purchase Agreement for 1 TWh of certified renewable power from the planned Citra Energies solar plant in Kedah, Malaysia, to support Google’s local data centers under the country’s Corporate Green Power Programme.

• This long-duration contract with a major technology customer underlines how TotalEnergies is scaling renewables and firm power solutions as part of its broader transition-focused portfolio.

• Next, we’ll explore how this long-term renewable PPA with Google could reinforce TotalEnergies’ investment narrative around growing integrated power.

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To own TotalEnergies, you need to believe it can use cash flows from hydrocarbons to fund a disciplined shift into integrated power while maintaining returns. The 21‑year Malaysian PPA with Google supports that transition story, but it does not materially change the near term sensitivity to oil prices or the execution risk around capital intensive renewables and power projects.

Among recent announcements, the Live Oak e‑methane project in the US stands out as especially relevant, as it also targets decarbonized molecules and long term offtake with utility customers. Together with the Google PPA, it reinforces the idea that future growth in power and low carbon fuels will require large upfront investment, careful balance sheet management and successful delivery of complex projects.

Yet alongside this growth in renewables and power, investors should be aware of the rising capital intensity and potential strain on…

Read the full narrative on TotalEnergies (it’s free!)

TotalEnergies’ narrative projects $194.9 billion revenue and $15.8 billion earnings by 2028. This requires 1.4% yearly revenue growth and a $3.0 billion earnings increase from $12.8 billion today.

Uncover how TotalEnergies’ forecasts yield a €63.30 fair value, a 16% upside to its current price.

Eighteen Simply Wall St Community fair value estimates for TotalEnergies span roughly €51.96 to €182.15, showing how far opinions can stretch. Against that backdrop, concerns about capital heavy growth in renewables and power make it especially important to compare several views before deciding how the company’s future performance might evolve.

Explore 18 other fair value estimates on TotalEnergies — why the stock might be worth over 3x more than the current price!

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include TTE.PA.

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