TotalEnergies Slashes Stake in Adani Green to Reduce Debt

TotalEnergies, the French energy giant, recently changed its investment strategy and announced plans to exit its Adani Green Energy stake. The company will also reduce its renewable energy holdings outside of the United States, Brazil and Europe as it focuses on managing rising debt.

This decision will affect approximately 25% of India's operational renewable portfolio, including a partnership with the Adani Group and a direct stake in Adani Green Energy.

TotalEnergies' CEO, Patrick Pouyanne, stated that while Adani Green Energy is a strong and growing company, the group would not expand its green portfolio with Adani in the future.

Pouyanne added, "I would be pleased to sell my stake in Adani Green," adding that TotalEnergies initially bought the stake for around $2 billion and that its current value is nearly $8 billion. This sale is part of a broader strategy to reduce debt and free up capital.

Why this move Shift Now?

The company is tightening its spending as it works to bring down debt. It will cut annual capex by $1 billion, guiding to $15–17 billion annually in 2027–2030, as part of a $7.5 billion savings plan.

What does it Mean for India and Adani Green?

About 25% of TotalEnergies' generated renewables portfolio is tied to India via Adani joint ventures and its direct stake in Adani Green. Exiting assets outside its three focus regions implies winding down India renewables exposure as part of this plan.

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Cash Moves to Shore Up the Balance Sheet

To raise cash, TotalEnergies agreed to sell 50% of a 1.4 GW US solar portfolio to KKR for $950 million (sale plus bank refinancing). The deal values the portfolio at $1.25 billion. TotalEnergies will keep the other 50%. Management has flagged ~$3.5 billion of asset sales by year-end.

The company also sold a $510 million stake in Nigeria's Bongo oilfield (10% to Shell, 2.5% to Agip), while two other planned divestments collapsed, a $860 million Nigeria sale to Chappal Energies and the West of Shetland gas assets sale after buyer Prax Group went bankrupt.

Net debt more than doubled in the first half of 2025, bringing the net debt/equity ratio to 18% (or 28% including leases and hybrids). Management says gearing should ease to ~15% by year-end and buybacks have been slowed to match market conditions.

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To Conclude

TotalEnergies is transforming into fewer regions, selling non-core renewables, considering its Adani Green stake and cutting capex to manage debt. It is raising cash via US solar and upstream asset sales while focusing on markets with better returns.