Adani Ports and Special Economic Zone Ltd could abandon a Myanmar container terminal project and write down the investment if it is found to be violating sanctions imposed by the United States, the company said
Adani Ports and Special Economic Zone, which operates some of the largest commercial ports in India, reported a 285% jump in consolidated net profit for the March quarter at ₹1,287.81 crore. The company had posted a profit of ₹334.39 crore in the corresponding quarter last year. Operating revenue for the firm rose 24% to ₹3,608 crore from ₹2,921 crore in the same quarter last year. Consolidated operating Ebitda advanced 39% to ₹2,287 crore.
Adani Ports and Special Economic Zone Ltd could abandon a Myanmar container terminal project and write down the investment if it is found to be violating sanctions imposed by the United States, the company said on Tuesday.
"In a scenario wherein, Myanmar is classified as a sanctioned country under the Office of Foreign Assets Control (OFAC), or if OFAC opines that the project violates the current sanctions, APSEZ plans to abandon the project and write down the investments," the company said in its fourth-quarter earnings presentation on Tuesday.
"The write-down will not materially impact APSEZ, as it is equivalent to about 1.3% of the total assets," Adani Ports said, adding that it is in discussion with US-based counsels Morrison Foerster to ensure compliance with the OFAC sanctions.
Adani Ports had in May 2019 announced its intent to set up a container terminal at Yangon, Myanmar, and entered through a lease agreement with the democratically elected government. Adani Ports invested $127 million in the project which provides employment to 300-350 people, the company said.
Meanwhile, APSEZ saw its net profit for the March quarter zoom nearly four times to ₹1,287 crore from ₹334 crore in the same quarter last year.
The company handled the highest ever container volume of 7.2 million of twenty-foot equivalent units (TEUs) during the year and achieved a market share of 41%, a gain of 5%. Mundra Port continues to be the largest container handling port in India and handled 5.66 million TEUs which is almost nearly one million TEUs more than JNPT.
Another Adani Group company, Adani Total Gas saw its net profit rise 19% to ₹145 crore in the quarter ended March 2021 as against ₹122 crore during the corresponding previous quarter.