Adani Ports to buy Australian coal facility, expand global footprint

Adani Ports announced on Thursday its intention to purchase the North Queensland Export Terminal, a deep-water coal export facility located on Australia's east coast, for an enterprise value of approximately A$3.98 billion ($2.54 billion). This deal is a strategic move to bolster its global presence in port operations. On Thursday, Adani Ports shares ended 2.2% higher at Rs 1259.90 on BSE. Market cap of the Adani Group firm stood at Rs 2.72 lakh crore. The announcement was made after market hours on April 17. 

Adani Ports shares hit a 52 week high of Rs 1607.95 on June 3, 2024 and fell to a 52 week low of Rs 993.85 on November 21, 2024.

As part of the acquisition, Adani Ports will issue 143.8 million shares to Carmichael Rail and Port Singapore Holdings, acquiring the terminal's operator, Abbot Point Port Holdings, along with assuming certain non-core assets and liabilities from Abbot Point Port's balance sheet. The terminal, initially bought by Adani Ports in 2011 and sold to the Adani family in 2013, boasts a capacity of 50 million tonnes per annum.

Located strategically on Australia's east coast, the North Queensland Export Terminal is poised for significant growth thanks to increasing capacity and potential contract renewals. Additionally, the facility presents opportunities in green hydrogen exports, a burgeoning sector that could further enhance Adani Ports' portfolio. 

Speaking on the acquisition, Ashwani Gupta, Whole-time Director & CEO, APSEZ, said, "NQXT’s acquisition is a pivotal step in our international strategy, opening new export markets and securing long-term contracts with valued users. Strategically located on the East-West trade corridor, NQXT is poised for robust growth as a high-performing asset, driven by increased capacity, upcoming contract renewals in the medium term, and the potential for green hydrogen exports in the long term. We are targeting EBITDA growing to A$ 400 million within 4 years. I am proud to welcome NQXT to our 'Growth with Goodness' initiative, as it exemplifies our commitment to high standards in environmental, social, and governance practices.”

The acquisition marks a significant expansion for Adani Ports, aligning with its objective to diversify and strengthen its global operations. The terminal is expected to benefit from medium-term contract renewals and the growing emphasis on sustainable exports like green hydrogen.

The strategic location and operational capacity will likely enhance Adani Ports' competitiveness in the international maritime market. The purchase will not only increase Adani's port capacity but also potentially drive higher revenues, supporting the company's financial growth targets. This transaction reflects Adani Ports' commitment to leveraging diverse opportunities in the global port industry while also adapting to emerging market trends.