TotalEnergies: exposure to India's Adani deemed limited

(CercleFinance.com) - On Friday TotalEnergies highlighted a "limited" exposure to Adani JV, the Indian conglomerate that has been facing serious accusations of accounting fraud for the past week.


The French energy group said that the exposure resulting from these holdings represents 2.4% (or 3.1 billion dollars) of its capital employed and only 180 million dollars in terms of net operating income for 2022.

TotalEnergies and the Adani group entered a partnership in 2018 by jointly developing a first joint venture in the liquefied natural gas (LNG) sector, Adani Total Private Limited (ATPL), in which the group holds a 50% stake.

TotalEnergies then extended its partnership with Adani in 2020 with the acquisition of a 20% minority stake in the listed company Adani Green Energy Limited (AGEL), followed by a 50% stake in a portfolio of solar assets owned by AGEL for a total investment of 2.5 billion dollars.

The due diligence carried out in connection with these investments was deemed to be "satisfactory" after being conducted in accordance with best practice, it added.

The Adani Enterprises share has been under pressure for more than a week following accusations of fraud by the American investment firm Hindenburg Research.

TotalEnergies shares have fallen by over 5% this week in the wake of the affair, although their price rebounded by 0.6% in early trading on Friday morning.


Copyright (c) 2023 CercleFinance.com. All rights reserved.