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Adani Ports Clarifies Haifa Port Contribution to Revenue

2023-10-10

Adani Ports and Special Economic Zone Ltd of India published a clarification during a dip in stock prices, noting that Haifa's entire contribution to APSEZ's stats is only 3% of total cargo volume.

“The overall contribution of Haifa in APASEZ’s numbers is relatively small at 3 per cent of the total cargo volume. For the current financial year (Apr 23-Mar 24), we have guided for Haifa Cargo volumes range of 10-12 MMT and APSEZ’s total cargo volume guidance of 370-390 MMT. In the initial six months (Apr-Sep 23), APSEZ’s total cargo volume was 203 MMT, of which the Haifa share is 6 MMT. We stay confident of APSEZs business performance,” the company spokesperson said.

The statement also stated that the corporation is on high alert and has a business continuity strategy in place.

Shares of billionaire Gautam Adani's APSEZ plummeted as much as 3.8% as investors were concerned about the possibility of escalation of a conflict in Israel, where the firm operates a major port.

Adani manages the Haifa Port in northern Israel in collaboration with a local company, which it purchased for 4 billion shekels ($1.03 billion) in January.

Haifa is a major seaport in Israel, where almost 99 percent of all commodities enter and exit the nation by sea.

Investors are concerned after the Palestinian Islamist group Hamas unleashed the most devastating military attack on Israel in decades, killing hundreds of Israelis.

Adani Ports shares are down 2.1 percent this year, compared to roughly 8% advances on the broader Nifty 50 index.

Haifa, located north of the current battle zone, is an important commerce hub on the Mediterranean.

Adani, the group's founder and chairman, stated in January that the company would continue to invest in Israel. Adani Ports completed the sale of its port in sanction-hit Myanmar earlier this year for $30 million, which was much less than the company's investment in the project.