AD Ports Group Q3 net profit up 77%
Q3 revenue up 53% YoY to AED 1.5bn ($405mn), driven by the maritime and EC&FZ clusters
AD Ports Group reported a 53 percent increase in Q3 revenue to AED 1.5 billion ($405 million) driven by strong growth in its maritime operations and robust performance of its economic cities & free zones (EC&FZ) cluster.
EBITDA increased 52 percent to AED 594 million ($160 million) in Q32022, implying an EBITDA margin of 40.5 percent. Net Profit increased 77 percent YoY to AED 334 million ($90 million).
"AD Ports Group continued to press ahead with its ambitious organic revenue generating CapEx programme with spending of AED 1.6 billion in Q32022 and AED 4.2 billion for 9M 2022," says an official release.
Ports cluster container volume increased 31 percent on increased capacity after the expansion of ADT and CSP Abu Dhabi Terminals in 2021.
"One of the key highlights of the period was the announcement of the acquisition of an 80 percent equity stake in Dubai-based Global Feeder Shipping (GFS), a global container shipping company, for AED 2.9 billion ($800 million), implying a 100 percent enterprise value of AED 3.7 billion ($1 billion). GFS is the third largest feeder shipping business globally with an operating capacity of 72,500 TEUs, a total of 26 vessels, and 9,000 owned and 31,000 operated containers across its feeder and NVOCC businesses. It operates a comprehensive service network of 20 services across the GCC, Red Sea, Indian Subcontinent and Southeast Asia.
"Upon completion, the acquisition, which is the largest by AD Ports Group to date, is set to position AD Ports Group as the largest pure feeder operator in the region and the third largest globally by container capacity, which will be close to 100,000 TEUs. GFS provides a complementary asset base and portfolio of services that will boost AD Ports Group's regional and global footprint."
In September, AD Ports Group also completed the acquisition of a 70 percent stake in International Associated Cargo Carrier (IACC) in Egypt, which fully owns Transmar and TCI, for an enterprise value of AED 514 million ($140 million), the release added.
"These remarkable results demonstrate the effectiveness and impact of our ambitious growth strategy as we seek new opportunities even in challenging global market conditions," says Captain Mohamed Juma Al Shamisi, Managing Director and Group CEO, AD Ports Group. "We have pursued joint ventures and acquisitions that have built supply chain density along major routes, accelerating trade and building resilience for customers around the world. These new ventures have played a key role in expanding our service offering, enabling us to support customers at every stage of their business journey, and delivering exponential growth in our maritime business in particular."
Ross Thompson, Group Chief Strategy and Growth Officer, AD Ports Group, adds: "Globally, we can see signs of economic recession and a slowing of international trade but our operations are thriving in markets and along routes that still show tremendous capacity for growth, particularly in the MENA region, along the Red Sea coast, and the Indian subcontinent.
"We are successfully executing a three-stage growth strategy with clear objectives and outcomes, consolidating our position as the leader in logistics and trade services in Abu Dhabi and the UAE; executing customer-led regional expansion along critical trade routes and through focused service launches; and expanding globally across major maritime and inland supply chains. We can offer confident medium-term visibility that will see positive strong revenue, EBITDA and profit growth for the next five years."
For the first nine months, revenue increased 35 percent to AED 3.8 billion ($1 billion), EBITDA was up 41 percent to AED 1.6 billion ($432 million) and net profit increased 58 percent to AED 941 million ($254 million).