TotalEnergies SE said its $3.1 billion investment in the gas and renewables units of Indian conglomerate Adani Group are healthy, but a hydrogen partnership is on hold for the moment.
The French energy giant has stakes in assets such as Adani Total Gas Ltd. and Adani Green Energy Ltd. which represent 2.4% of the French firm’s capital employed last year.
Shares of the companies of the Indian conglomerate have slumped in recent week after Hindenburg Research accused Adani Group of stock manipulation. The company has repeatedly denied the allegations.
“These companies have assets and revenue” and are healthy, TotalEnergies’ Chief Executive Officer Patrick Pouyanne said at an earnings presentation in Paris on Wednesday. The French company conducted due diligence before and after investing in the Adani companies, he said.
Shares of Adani Green and Adani Total Gas are still up by a factor of two and eight, respectively, since Total invested in them, Pouyanne added.
Total hasn’t yet signed a contract announced last year to extend its partnership with Adani through the production of green hydrogen, Pouyanne said. That will have to wait for the result of the audit launched by the Indian conglomerate in response to the allegations of Hindenburg Research, he said.