Adani Ports Makes Defense As Company Stock Falls on Israel-Hamas War
India”s Adani Ports and Special Economic Zone Ltd. (APSEZ) on Monday stepped up its defense against the fall in share price, making it clear that the Israel-Hamas war will not affect the company”s state of affairs.
In a statement, the company said that Israel”s Haifa port, which is being operated by the group, is contributing only 3% to its total cargo volume. The current fiscal, Haifa”s contribution to total cargo is 10-12 million metric tons (MMT), while the total cargo stands at 370-390 MMT. In the first six months, the total cargo volume was around 203 MMT, where Haifa”s contribution was 6 MMT. The spokesperson of the company expressed his optimism on the company”s future growth.
The statement said that the company is conscious about the matter and is ready to embark on a new business continuity plan. On Monday, shares of the APSEX had fallen 3.8%.
Adani, an Indian multinational conglomerate, operates the Haifa Port in northern Israel in partnership with a local company. The purchase of the port was completed in January for 4 billion shekels ($1.03 billion). Haifa is one of the main seaports in Israel, where about 99% of all goods move in and out of the country by sea.
Investor concerns have arisen as Hamas, a Palestinian Islamist group, launched the largest military assault on Israel in decades on Saturday, killing hundreds of Israelis. Adani Ports” shares have declined by 2.1% this year, compared to nearly 8% gains in the broader Nifty 50 index.
Haifa is a significant trading hub on the Mediterranean, located north of the present conflict zone. Adani”s founder and chairman had stated in January that the group would continue to invest in Israel. However, Adani has not yet responded to Reuters” request for comment on the potential impact on operations in Israel.
Earlier this year, Adani Ports sold its port in sanction-hit Myanmar for $30 million, significantly lower than its investment in the project. Meanwhile, other listed Adani Group stocks were down 1-4% on Monday.
