Adani Ports says monitoring Haifa port situation after stock slumps

The Adani Group’s ports and logistic arm has clarified that it is closely monitoring the swiftly escalating conflict in Israel after its shares fell due to concerns over the Haifa Port, which it operates.

Adani Ports and Economic Zone (APSEZ), in a media statement on Monday, stressed that the port is situated in the North while the fighting is taking place in the country’s southern region.

“We have taken measures to ensure the safety of our employees and 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’s spokesperson said.

This came after the Adani Ports’ stock dropped 4.5% over fears of escalation of the conflict in Israel, which has declared an all-out war against Hamas after surprise rocket attacks from the Gaza Strip. Billionaire Gautam Adani’s ports arm had acquired operations of the port in January this year along with a local company for $1.03 billion.

“At a time like this, our thoughts continue to be with the people of Israel,” the statement added.

Stressing that it is confident of APSEZ’s business performance, the company said that the Haifa port contributes to only 3% of its total cargo volume. In the first two quarters of the current financial year, APSEZ’s total cargo volume was close to 203 million metric tonne (MMT), of which Haifa’s share was nearly 6 MMT, it said.

“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.”

The conflict has caused oil prices to spike while sending Israel’s currency, the Shekel, to its lowest since 2016, affecting companies in multiple emerging markets and heightening fears of inflation, Reuters reported on Monday. Many global companies have asked employees in the country to work from home for the foreseeable future.