54% Rise In Adani Green This Year Tempts TotalEnergies To Record Profits

Since the beginning of 2022, the value of Adani Green's shares has increased by almost 54%, which has persuaded TotalEnergies, one of the company's major shareholders, to declare a profit. Patrick Pouyanne, CEO of TotalEnergies, stated during an analyst call that the increase in the value of Adani Green is a "source of potential cash," suggesting that the energy giant may lower its holding and book gains while the stock is still rising.

Pouyanne outlined TotalEnergies' commitment to Adani Green and stated that the company has no immediate plans to reduce its stake in the business. To make up for some of its investments, TotalEnergies would only sell a small portion of its stock if it chose to post profits.

It's important to remember that in 2021, TotalEnergies paid $2 billion to acquire a 20% interest in Adani Green. The value of that investment has increased by a healthy 5x in just over a year to $10 billion.

Despite having experienced a significant bull run in its shares in 2022, Adani Green is just the sixth-best performer out of the seven Adani Group firms (excluding the newly acquired Ambuja Cements and ACC).

Despite mounting worries about the Adani Group being "over-leveraged," Pouyanne stated the balance sheet of Adani Green is "secure," despite the stock falling 30% from its peak in April and Adani Green's 54% returns this year.