Govt extends petroleum import approval for Krishnapatnam Port; here’s how Adani Ports shares reacted

Shares of Adani Ports and Special Economic Zone (SEZ) gained over 1% intraday on Monday after the government extended petroleum import approval for Krishnapatnam Port. The ministry of ports, shipping, and waterways today extended the approval for petroleum imports at Adani Krishnapatnam Port in Andhra Pradesh till March 1, 2026, according to official statement.

With this, Adani Krishnapatnam Port will be allowed to continue importing petroleum by sea in accordance with operations permitted under the Navigational Safety at Ports Committee (NSPC) certificate. The extension is valid for period of 19 months, from August 25, 2024, to March 1, 2026.

“In exercise of the powers conferred under Rule 16(1) of the Petroleum Rules, 2002, and in continuation of the notification of Government of India, Ministry of Ports, Shipping and Waterways S.O. 3515(E) dated 25th August, 2021, the Central Government, in consideration of the necessity to import petroleum in public interest, hereby extends the notification for Krishnapatnam Port in Andhra Pradesh {M/s Adani Krishnapatnam Port Limited; for importing petroleum into India by sea in accordance with operations permitted in Navigational Safety at Ports Committee (NSPC) certificate number NSPC/041/2021 dated 01.11.2021 for the period from 25.08.2024 to 01.03.2026,” the ministry of ports notified today.

Boosted by the development, shares of Adani Ports gained as much as 1.2% to ₹1,275.75, while the market capitalisation climbed to ₹2.74 lakh crore. Early today, the port heavyweight opened at 1259.95, a tad lower than the previous closing price of ₹1,260.25 on the BSE.

Adani Ports & SEZ is the largest integrated port operator providing allied services as well in India with cargo handling capacity of 627 million metric tonnes (MMT) as of March 2024, spread over 15 domestic ports and terminals and 4 international ports. It has garnered 27% market share in overall cargo and 44% in container volumes handled by Indian ports.

Last month, Adani Ports handled 36 MMT of cargo, led by 21% growth in the container segment. It handled 293.7 MMT of total cargo year-to-date (YTD), representing a 7% year-over-year increase. This growth was supported by containers, which was up 19% YoY, followed by liquids & gas (7%).

In the second quarter ended September 30, 2024, the Adani group company handled a total cargo of 111 Mmt, up 10% YoY despite a weeks-long shutdown at its Gangavaram port in southern India due to a workers’ strike.

For the July-September quarter of FY25, Adani Ports reported a net profit of ₹2,445 crore, up 39.90% YoY. This was attributed to increase in the cargo volumes and “new capacity additions progressing as planned in Gopalpur, Vizhinjam, and Colombo”. The revenue from operations for Q2 FY25 stood at ₹7,067.02 crore, registering a YoY growth of 6.33%.

(DISCLAIMER: The views and opinions expressed by investment experts on fortuneindia.com are either their own or of their organisations, but not necessarily that of fortuneindia.com and its editorial team. Readers are advised to consult certified experts before taking investment decisions.)