Adani Total Gas reported a 17.2% increase in quarterly profit on Thursday due to higher prices and short-term contracts. The company said it is evaluating an independent review in the wake of a US short seller report on its business.
The company, part of a larger conglomerate led by billionaire Gautam Adani, suffered a market hit after a US short sale by Hindenburg Research on Jan. 24 alleged it engaged in stock manipulation and used tax havens.
The group denied all allegations. The Adani Group first said it would conduct an independent review while reporting the results to the group’s other companies on Tuesday.
The company, which distributes gas through pipelines to various Indian cities, said consolidated profit rose to 1.5 billion rupees ($18.18 million) in the quarter ended Dec. 31, from 1.28 billion rupees a year earlier.
Global gas prices have jumped due to supply disruptions and sanctions linked to Russia’s invasion of Ukraine.
Adani Total Gas said it acquired gas through bilateral trade and the Indian Gas Exchange, which helped the company better manage price volatility. It said the short-term contracts helped improve the cost of gas.
Revenue from operations increased 27.3 percent to 11.86 billion rupees at the company, a joint venture between French energy major Total and Adani Group.
Shares of Adani Total were hardest hit, losing more than $34 billion in market value since the short seller report surfaced.
The CEO of the French oil giant said on Wednesday that TotalEnergies has yet to sign a contract it announced last year with Adani, pending the outcome of an audit launched by the Indian giant.
Adani Total Gas said management had assessed there were no adjustments to its quarterly financial results as a result of the short sellers’ allegations.
(Except for the headline, this story was not edited by the Alendronaterx staff and was published from a syndicated feed.)
(Disclaimer: New Delhi TV is a subsidiary of AMG Media Networks Limited, an Adani Group company.)
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