Mundra Port & SEZ's (Mundra) Rs 8,694-crore acquisition of a 99-year lease of Abbot Point X50 Coal Terminal in Queensland, Australia would not only add more international assets to its kitty but also enable transportation of coal from mines owned by its parent in the region. This would be the second terminal to be operated by Mundra in Queensland. The company is developing a coal export terminal at Dudgeon Point Port in Queensland, as a Greenfield project, with capacity of 30-60 million metric tonnes per annum (MMTPA).
The Abbot Point port, which is an operational facility, has a 50 MMTPA capacity with scope to expand it by another 30 million tonnes. The bid price of 1.8 billion Australian dollars (Rs 8,694 crore) for this terminal may appear aggressive, given that the company is expected to receive about A$110 million or Rs 530 crore as revenue (and Rs 285 crore EBITDA) in 2011. Based on these numbers, the Enterprise Value to EBITDA at 30 times appears to be at a premium. At full capacity, the terminal would generate about A$305 million or Rs 1,500 crore of revenue (at current exchange rates) and Rs 1,030 crore of EBITDA on annual basis.