TotalEnergies, a French-headquartered energy company, has told investors it has a “limited” $3.1 billion exposure to Indian conglomerate Adani Group, representing a 2.4% of its worldwide investment activities.
In a statement posted on its website Friday, the multinational oil giant outlined the extent of its exposure to the struggling Adani Group, which has to date, lost more than $110 billion in market value since short seller Hindenburg Research alleged fraud at the Adani-linked companies over a week ago.
said it has a 50% stake in Adani Total Private Limited, owns 37.4% of Adani Total Gas Ltd.
has a 20% minority interest in Adani Green Energy
and a 50% stake in solar assets owned by AGEL23, for $2.5 billion. AGEL23 is a jointly owned venture between the French energ giant and Adani Green Energy from 2020 to expand solar power generation in India.
The Paris-listed firm was trading over 1% up on Friday, reversing a four-day losing streak.
“TotalEnergies’ exposure resulting from these stakes is limited, as it represents 2.4% ($3.1 billion at December 31, 2022) of the Company’s capital employed and only $180 million of net operating income in 2022,” the company said.
TotalEnergies said it had invested in the Adani firms in full compliance with Indian law and its own internal governance processes.
The firm welcomed Adani’s announcement that it will mandate one of the “big four” accounting firms to carry out a general audit.
“These investments being accounted for under the equity method, TotalEnergies has not performed any re-evaluation in its accounts of its stakes in the listed entities Adani Total Gas and Adani Green Energy in relation to the increase in their stock values,” it added.