AD Ports Group Q1 profit rises 16% as core clusters drive double-digit revenue growth

AD Ports Group reported a 16 per cent year-on-year rise in net profit to Dhs464m in Q1 2025, as its Ports, Economic Cities & Free Zones (EC&FZ), and Maritime & Shipping clusters continued to deliver strong operational performance.

Group revenue rose 18 per cent year-on-year to Dhs4.60bn, supported by robust contributions from the three core clusters. EBITDA grew 9 per cent to Dhs1.14bn, with margins slightly narrowing to 24.7 per cent from 26.7 per cent in Q1 2024. Earnings per share increased 14 per cent to Dhs0.07.

Capital expenditure in the quarter reached Dhs954m, down from Dhs1.28bn in Q1 2024, as capex intensity declined to 21 per cent of revenue, compared to 33 per cent in the same period last year.

Operating cash flow stood at Dhs725m, slightly below the previous year, primarily due to timing of collections.

Free cash flow to the firm was negative Dhs173 million.

“The positive momentum from our record 2024 financial results continued into the first quarter of 2025,” said Captain Mohamed Juma Al Shamisi, MD and group CEO of AD Ports Group. “Our value-adding business ecosystem weathered prevailing macroeconomic and geopolitical uncertainties to drive strong, double-digit growth in revenue and net profit.”

The group maintained a stable net debt to EBITDA ratio of 3.4x, compared to 3.3x at the end of 2024, supported by a strong liquidity position.

AD Ports Group leverages new partnerships and international expansion

AD Ports continued its international expansion during the quarter, including:

• A 51 per cent joint venture to develop a grain terminal at Kuryk Port in Kazakhstan.
• The start of port and logistics operations at Luanda Port in Angola.
• A 50-year land lease with Al Ain Mills for a 300,000-metric-tonne grain facility at Khalifa Port South Quay.
• A joint venture with CMA CGM Group (49 per cent ownership) to develop a multipurpose terminal at Pointe Noire in the Republic of Congo.
• A contract to manage and operate Al Madouneh Customs Centre in Amman, Jordan, integrating AI, blockchain, and IoT logistics.

The group also entered marine services and fleet optimisation through a 70 per cent-owned JV with Arab Shipbuilding & Repair Yard Company (ASRY) in Bahrain, and a 50 per cent-owned JV with Columbia Group to launch an AI-powered digital platform for third-party vessel optimisation.

Other major developments included the start of Al Faya Dry Port operations between Abu Dhabi and Dubai, and lease agreements in KEZAD for sustainable polymer and food manufacturing facilities.

Geopolitical resilience and green shipping

Despite ongoing geopolitical volatility in the Red Sea and evolving US tariff policies, AD Ports said it remains well-positioned to adapt, citing its geographic footprint and five-cluster integrated model.

The Red Sea disruptions have positively impacted the group’s container shipping business, while current US tariff shifts have had a minimal effect.

The group also ramped up its ESG and decarbonisation efforts, including investments in electric tugboats, LNG-powered Ro-Ro vessels, and LNG bunkering services at Khalifa Port, with its first ship-to-ship operation completed in April.

The company said it will continue to prioritise investment in resilient infrastructure across Ports and Economic Cities & Free Zones, supported by its maritime, logistics, and digital capabilities.