France’s TotalEnergies SE said its exposure to Adani Group companies was $3.1 billion of capital employed at the end of December, a small fraction of the energy giant’s globe-spanning interests. 

The Adani Group, which has lost more than $100 billion in market value since Hindenburg Research accused it of stock manipulation and accounting fraud in a Jan. 24 report, has partnerships with TotalEnergies in gas and renewable energy. The Indian conglomerate has repeatedly denied the allegations, but they have undermined investor confidence in shares and bonds of Adani’s companies. 

TotalEnergies owns a 37.4% stake in Adani Total Gas Ltd., a listed gas distribution business, and 50% in Adani Total Private Limited, which is developing a liquefied natural gas import terminal. In 2020, it bought 20% in renewables unit Adani Green Energy Ltd. and a stake in solar assets for $2.5 billion.

“TotalEnergies’ exposure resulting from these stakes is limited, as it represents 2.4% of the company’s capital employed,” and just $180 million of net operating income last year, the French firm said in a statement on Friday. These investments were undertaken in full compliance with Indian laws and its own internal governance processes, Total said.

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For Total, which agreed last year to extend its partnership with Adani through the planned production of green hydrogen, the troubles have the potential to slow its Indian expansion in natural gas and renewables. The two types of energies are the group’s growth engines as it progressively reduces its exposure to oil.     

There appears to be no need for TotalEnergies to write down its holdings in Adani Total Gas or Adani Green because the value of both companies had increased significantly before the recent stock-market rout. Total acquired its 20% stake in Adani Green for $2 billion. The venture’s current market capitalization is $18 billion.    

TotalEnergies said it has accounted for these investments using the equity method and did not perform any re-valuation of its holdings when their market values were increasing.  

TotalEnergies shares were trading 0.4% higher at €55.42 at 9:08 a.m. in Paris Friday, ending a four-day losing streak. –BLOOMBERG