Aegis Vopak Terminals Limited (AVTL), India's largest independent owner and operator of tank storage terminals for LPG and liquid products, has reported a robust financial performance for Q2, along with significant strategic developments that underscore its ambitious growth trajectory.

Financial Highlights

AVTL demonstrated strong financial growth in Q2:

The company's liquid terminalling revenue increased by 28.3% year-on-year to ₹106.00 crore, while gas terminalling revenue grew by 23.7% to ₹81.50 crore. The gas throughput for the quarter reached 0.68 million metric tons, up from 0.52 million metric tons in the previous quarter.

Strategic Expansions and Acquisitions

AVTL announced several strategic initiatives to strengthen its market position:

1. Acquisition of Hindustan Aegis LPG Limited (HALPG): AVTL plans to acquire a 75% stake in HALPG, subject to shareholder approval. This acquisition will add 25,000 metric tons of LPG capacity at Haldia, marking AVTL's entry into the East Coast market.

2. Expansion at JNPA Port: The company is progressing with its ₹1,675.00 crore expansion project at JNPA, which includes adding 318,100 cubic meters of liquid capacity and 77,286 metric tons of LPG storage.

3. New Developments at Kandla Port: AVTL is developing a new liquid terminal with 94,148 cubic meters capacity at Kandla Port. The company has also signed a non-binding MoU with Larsen & Toubro to set up Ammonia Terminals.

4. Capacity Additions at Other Ports: The company plans to add 60,000 cubic meters of capacity each at Kochi and Mangalore ports.

5. Vadhavan Port Investment: AVTL has signed a non-binding MoU to invest approximately ₹20,000.00 crores in the upcoming Vadhavan Port.

Operational Updates

• The new LPG terminals at Pipavav and Mangalore are now fully operational and contributing to revenues.
• AVTL expects significant volume boosts once the Kandla-Gorakhpur Pipeline (KGPL) and Jamnagar-Loni Pipeline (JLPL) become operational.
• The company is gearing up for the commencement of Very Large Gas Carrier (VLGC) berthing at Kandla, which will allow handling of larger cargoes efficiently.

Future Outlook

Raj Chandaria, Chairman & Managing Director of AVTL, expressed confidence in the company's growth strategy: "With a strong balance sheet, expanding asset base, and growing demand for LPG, Ammonia, and Liquids, we are well-placed to deliver consistent growth and strengthen our leadership in India's energy logistics sector."

AVTL aims to achieve a cumulative capital expenditure of USD 1.20 billion by next year and targets an aggregate CAPEX of around USD 5.00 billion by 2030. The company plans to expand its presence from the current 6 ports to potentially 8-12 ports by 2030, significantly increasing its liquid and gas storage capacities.

As AVTL continues to execute its strategic roadmap, investors can anticipate sustained growth and value creation in the coming years, solidifying the company's position as a key player in India's rapidly expanding energy logistics ecosystem.

Aegis Vopak Terminals Limited , a leading provider of liquid and gas storage solutions in India, has announced a significant financial move alongside its latest quarterly results. The company's board has given the green light for the issuance of Non-Convertible Debentures (NCDs) worth ₹660 crore, marking a strategic step in its financial planning.

NCD Issuance Details

The board of Aegis Vopak Terminals has approved the allotment of 66,000 Redeemable, Senior, Rated, Listed, Secured, Taxable Non-Convertible Debentures. Each debenture is valued at ₹1,00,000, culminating in a total issue size of ₹660 crore. This private placement is set to be listed on the National Stock Exchange (NSE).

Key features of the NCDs include:

• Tenure: 3 years (Maturity date: November 7, 2028)
• Interest Rate: 6.92% per annum, payable quarterly
• Principal Repayment: Bullet payment at maturity
• Security: Backed by tangible moveable fixed assets at Mangalore Port and the company's cash flows, receivables, and bank accounts

Q2 Financial Highlights

Alongside this development, Aegis Vopak Terminals has released its financial results for the second quarter, showcasing robust growth:

The company's performance demonstrates strong growth across all key financial metrics. The revenue split between gas and liquid terminalling segments stands at 43.5% and 56.5% respectively for the current quarter.

Operational Highlights

• Commissioned new LPG terminals at Pipavav (48,000 MT) and Mangalore (82,000 MT)
• Ongoing expansion at JNPA with ₹1,675 crore investment for new liquid and LPG capacities
• Construction of India's first independent ammonia terminal (36,000 MT) at Pipavav
• On track to reach a capex of USD 1.2 billion by FY27 and USD 5 billion by 2030

Management Commentary

Raj K. Chandaria, Chairman & Managing Director, stated, "Our Q2 results reflect the strength of our business model and the growing demand for our storage solutions. The approval for NCD issuance will provide us with the necessary capital to fuel our ambitious expansion plans and reinforce our position as India's leading third-party liquid and gas storage provider."

Aegis Vopak Terminals continues to capitalize on India's expanding energy logistics sector, with strategic investments in capacity and infrastructure. The company's focus on diversification and expansion across key ports positions it well for sustained growth in the coming years.