APSEZ had announced on April 17 that it will acquire NQXT by issuing new equity shares to the Australian coal terminal’s shareholders
| Photo Credit:
ANI
Characterising Adani Ports and Special Economic Zone’s (APSEZ) recent acquisition of North Queensland Export Terminal (NQXT) in Australia as “credit neutral”, Fitch Ratings on Friday said the move will support APSEZ’s effort towards international diversification, without affecting its financial stability.
“We expect APSEZ’s financial profile to remain intact after the acquisition, with forecast gross leverage of around three times from the financial year ending March 2026 (FY26) to FY29 in Fitch’s rating case. The acquisition will increase the share of APSEZ’s EBITDA from global operations to 10 per cent from four per cent currently. It will also raise the share of coal in APSEZ’s cargo mix by around 3-4 per cent,” Fitch stated.
APSEZ had announced on April 17 that it will acquire NQXT by issuing new equity shares to the Australian coal terminal’s shareholders, which are the same promoter group as for APSEZ.
The acquisition is unlikely to have any impact on NQXT’s operations as APSEZ already operates the terminal. “NQXT’s annual throughput of 35 million tonnes is entirely coal-related and comprises 55 percent metallurgical and 45 percent thermal coal. However, we expect the share of coal to reduce over the medium to long term given the faster growth of APSEZ’s other cargo segments, mainly containers,” it added.
NQXT requires minimal capex in the medium term, with current capacity utilisation at 70 per cent. The terminal benefits from medium-term take-or-pay contracts and a long remaining terminal lease life of 85 years, which will improve the stability of APSEZ’s cash flows, though the terminal’s contribution is likely to remain modest, Fitch said.
NQXT also has minimal refinancing risk, with no debt maturity until 2030. In addition, NQXT’s debt structure also includes features like restrictions on additional indebtedness and cash outflows, it added.
More Like This
Published on April 25, 2025
