TotalEnergies Considers The Possibilities Of The 5X Jump In Value Of AGEL Investment

Patrick Pouyanne, CEO at French energy major  TotalEnergies’ SE  has indicated that the firm will consider the possibility of selling a small part of its 20% stake in Adani Green Energy Ltd. At current prices, that stake is worth just around $10 billion. In 2021, the French energy company had paid $2 billion for its 20% stake. Total Energies also has a partnership with the Adani Group in its Gas distribution business, Adani Total gas.

However at the same presentation to analysts,  Pouyanne added that the engagement with the Adani group was a deep and long term commitment, so no immediate changes should be expected.

With a target of taking its RE investments to 33% of net investments, Total has been aggressively adding renewable assets worldwide to its portfolio. The firm hopes to add electricity generation as a major part of its energy basket by 2030, at 100 GW capacity.

In India, it has clearly found the Adani partnerships very rewarding and more than adequate, as seen by its willingness to commit to the group’s Green Hydrogen plans with the purchase of a 25% share in Adani New Industries Ltd. for an undisclosed sum. Adani New Industries houses all the renewable focused firms within the Adani Group, itself being a subsidiary of listed group holding firm Adani Enterprises Limited. Adani Enterprises itself has also become part of the key Nifty stock index, indicating the high impact and prospects for the firm as seen by the investment community. Back in 2020, it had also invested over $500 million on a separate portfolio of solar assets owned by the Adani group.  

Adani Green Energy Limited itself , as the developer or renewable energy generation arm of the group, has been digesting it’s $3.5 billion acquisition of SB Energy’s renewable portfolio in India, and has enjoyed elevated valuations for quite some time now, when compared to peers in India or worldwide.