Hindenburg Research Report Total Energies’ Statement on Investments in India in Partnership with Adani Group

Related Vendors

TotalEnergies

Elementar Analysensysteme GmbH

Pörner Ingenieurgesellschaft mbH

ProMinent GmbH

Post the publication of the Hindenburg research report on the Adani Group, Total Energies has issued a statement which reveals details about its joint investments in India in partnership with the Indian multinational conglomerate.

Paris/France – Following the allegations against Adani Group published by the Hindenburg Research company on January 24, 2023, Total Energies wishes to bring the following information regarding its joint investments in India in partnership with Adani since 2018.

Total Energies’ investments in Adani’s entities were undertaken in full compliance with applicable – namely Indian – laws, and with Total Energies’ own internal governance processes. The due diligence, which were carried out to Total Energies’ satisfaction, were consistent with best practices, and all relevant material in the public domain was reviewed, including the detailed disclosures to regulators required under applicable laws. Total Energies welcomes the announcement by Adani to mandate one of the ‘big four’ accounting firms to carry out a general audit.

The entities Total Energies has invested in with Adani are managed in accordance with applicable regulations. The day-to-day operations of the entities listed in India, Adani Total Gas (ATGL) and Adani Green Energy (AGEL), are managed by independent teams of professional managers, and their boards are composed of at least 50 % independent and non-executive directors. (5/9 for ATGL and 5/10 for AGEL). S. R. Batliboi & Co., a member company of the international financial audit firm EY is AGEL’s statutory auditor.

The following table lists Total Energies’ current stakes in ventures with Adani:

Total Energies’ exposure resulting from these stakes is limited, as it represents 2.4 % (3.1 billion dollars at December 31, 2022) of the Company’s capital employed and only 180 million dollars of net operating income in 2022. These investments being accounted for under the equity method, Total Energies has not performed any re-evaluation in its accounts of its stakes in the listed entities ATGL and AGEL in relation to the increase in their stock values.

About Total Energies’ partnerships with Adani Group

In 2018, Total Energies and Adani Group embarked on an energy partnership with the development of a joint LNG business, Adani Total Private Ltd (ATPL). ATPL aims to develop the Dhamra LNG regasification terminal – which is expected to start operations in Q2 2023 – and to market LNG.

In 2019, Total Energies announced the acquisition of a 37.4 % stake in the listed entity Adani Total Gas Ltd, a city gas distribution business. As of end 2022, ATGL operated 33 city gas licenses and some 380 compressed natural gas (CNG) stations.

In 2020, Total Energies and Adani Group extended their relationship, with the acquisition by Total Energies of a 20 % minority interest in the listed company Adani Green Energy Ltd, and a 50 % stake in a 2.35 GWac portfolio of operating solar assets owned by AGEL (AGEL23), for a total investment of 2.5 billion dollars. AGEL has around 7 GWac in operation, 10 GWac in construction and 3 GWac in late development.

(ID:49051963)