Adani Ports Stock Drops Due to Israel-Hamas Conflict Concerns
Adani Ports’ stock plummeted by nearly five percent on Monday due to concerns about the impact of the Israel-Hamas conflict on its recently acquired Haifa Port. The stock’s 4.9% decline made it one of the top losers on the Nifty50 index.
Haifa Port’s Contribution to Adani Ports
Adani Ports completed the acquisition of Haifa Port earlier this year for $1.2 billion. Despite the stock drop, the company downplayed the impact, stating that Haifa Port’s contribution to its overall operations is minimal. “The overall contribution of Haifa in Adani Ports’ numbers is relatively small at 3% of the total cargo volume. For the current FY24, we have guided for Haifa Cargo volumes range of 10-12 MMT and Adani Ports’ total cargo volume guidance of 370-390 MMT,” the company explained.
Cargo Volume and Business Performance
From April to September 2023, Adani Ports handled a total cargo volume of approximately 203 MMT, with Haifa Port accounting for about 6 MMT. The company expressed confidence in its overall business performance despite the geopolitical tensions.
Geographical Position and Safety Measures
Adani Ports emphasized that Haifa Port is located in northern Israel, far from the conflict zones in the south. “We are closely monitoring the action on the ground, which is concentrated in South Israel, whereas Haifa port is situated in the North,” the company stated.
Rising Tensions in the Middle East
The tensions in the Middle East escalated after Hamas launched an offensive against Israel, capturing several hostages. Israel responded with airstrikes, and Prime Minister Benjamin Netanyahu declared that the country “is at war.”
Preparedness and Employee Safety
Adani Group, one of the few major Indian companies with interests in Israel, assured that it has taken measures to ensure the safety of its employees. “All of them are safe. We remain fully alert and prepared with a business continuity plan that will enable us to respond effectively to any eventuality,” the company added.
