AD Ports Group Q2 net profit up 59%
Revenue increased to AED 1.2bn ($335 million), driven by maritime and economic cities & free zones (EC&FZ) clusters.
AD Ports Group reported a 35 percent increase in revenue at AED 1.2 billion ($335 million) driven by the maritime and economic cities & free zones (EC&FZ) clusters.
"The ports cluster Q22022 revenue performance was hampered by an unfavourable base effect from the one-off sand supply contract that ran from March until October 2021. However, on a like-for-like basis, the ports cluster revenue grew by 20 percent YoY in Q22022," says a release announcing the results.
EBITDA increased 41 percent YoY to AED 532 million ($144 million) and EBITDA margin improved by close to 200 bps to 42.8 percent.
Net Profit increased 59 percent to AED 300 million ($81 million) despite higher depreciation charges and higher finance costs, the statement added.
"The momentum of our growth journey has accelerated throughout the first half of the year, and we anticipate continuing to deliver on our performance for the remainder of the year," says Captain Mohamed Juma Al Shamisi, Managing Director and Group CEO, AD Ports Group. "We are grateful to our wise leadership for their unwavering support towards our endeavours that seek to drive the economic growth, diversification, and industrialisation of the UAE. The Group's core businesses have continued to rebound from the severe supply chain disruptions of last year while our new ventures, enhanced service offering, and diversification strategy into synergistic new businesses have been yielding positive results.
"In Q22022, we continued to invest heavily in order to deliver future growth. Moreover, we have also benefited from the macro picture in the Gulf region, and in the UAE in particular. Not only have oil prices been increasing sharply, which has accelerated the country's economic growth, including the non-oil economy, but AD Ports Group is also well-positioned to be one of the key beneficiaries of Abu Dhabi's Industrial Strategy, which aims to more than double the size of its manufacturing sector to AED 172 billion ($46 billion) by 2031."
Ross Thompson, Group Chief Strategy and Growth Officer, AD Ports Group, adds: "Global markets are still turbulent with a high inflation environment, rising interest rates, geopolitical tensions as well as continued ramifications of the Covid-19 pandemic including supply chain disruptions and supply shortages. Global seaborne container trade volumes decreased around 2.5 percent in H12022, with full-year forecasts expected to finish higher at near 1 percent YoY growth. On the other hand, shipping rates remain at extraordinary levels and their outlook for the rest of the year remains positive with continuing disruptions providing support despite trade headwinds."
Consolidated capital expenditure during Q22022 reached AED 1.6 billion ($432 million) with the three main recipients, by order of quantum, being the maritime cluster (vessel fleet expansion), the ports cluster (Khalifa Port expansion and Etihad Rail connectivity), and the economic cities & free zones Cluster (new warehouses, gas network expansion and infrastructure-related investments to unlock additional land), the release added.