India: Essar Ports’ Performance is Consistent with Growth Targets, Says Agarwal

Essar Ports Ltd., part of the Essar Group, today announced its unaudited results for the quarter ended September 2013.

Speaking on the key highlights for the quarter, Mr. Rajiv Agarwal, Managing Director, Essar Ports Ltd. said: “Our performance is consistent with the growth targets we have set for ourselves and we are confident of delivering good performance in the coming quarters. We will further strengthen our performance once we execute the projects in hand and third party terminals at Paradip and Vizag.”

Eventful First Half:

– Company achieved 25% minimum public shareholding requirements of SEBI by successfully completing dilution through Offer for Sale.

– Won the bid for 23 MMTPA Iron Ore terminal at Vizag. Project will significantly enhance third party mix of the Company and gives strategic presence on the east coast after Paradip.

– The Company declared dividend of 5% for FY 2012-13.

– Salaya Jetty construction completed.

Operations on track:

– 13.01 million tonnes of cargo handled during Q2 FY14 as against 12.70 million tonnes of cargo handled during Q2 FY13.

– 27.08 million tonnes of cargo handled during H1 FY14 as against 25.36 million tonnes of cargo handled during H1 FY13.

– Company has earned trade revenues and incurred purchase expenses of Rs 301.92 cr each during the quarter on account of fulfilling export obligations under EPCG.

– Vadinar terminal completed 2500 Loss Time Injury free days during the quarter and also completed over 1 million accident free man hours reflecting the QHSE of the terminal operations.

– Vadinar terminal won the safety Award in Lloyds List Middle East and Indian Subcontinent Awards 2013.

– Hazira expansion project obtained Consent to Establish (CTE) from GPCB for the Expansion Project.

– Hazira Terminal received Gold Award in the Greentech Safety Awards 2013.

Essar Ports Ltd. is one of the largest port companies of India, with a current capacity of 104 MMTPA. The capacity is being expanded to 181 MMTPA over the next few years.

Essar Ports has three operational terminals at Hazira, Vadinar and Paradip. The Hazira port is an all-weather, deep-draft port with 30 MMTPA of dry bulk and break bulk cargo handling capacity. Vadinar is also an all-weather, deep-draft port with 58 MMTPA of liquid cargo handling capacity. Paradip dry bulk terminal was commissioned in December 2012 and is an all-weather, deep-draft port with 16 MMTPA of dry bulk cargo handling capacity.

Essar Ports is currently developing one terminal at Paradip which will be a coal berth of 14 MMTPA. The Company is also setting up a dry bulk terminal at Salaya with a capacity of 20 MMTPA. Additionally, the Company plans to expand its Hazira port capacity by 20 MMTPA – taking its capacity to 50 MMTPA. Essar Ports has won the bid for the development of three iron ore berths totaling 23 MMTPA at Visakhapatnam Port.

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Press Release, October 31, 2013