AD Ports Q2 net profit surges 42% to Dhs439m

Image: AD Ports Group

AD Ports Group’s Q2 2024 financial results reflected a 56 per cent year-on-year (YoY) increase in earnings before interest, taxes, depreciation and amortisation (EBITDA), reaching Dhs1.07bn for the period.

For H1, the figure saw a 51 per cent YoY jump, reaching Dhs2.1bn.

The company’s total net profit also surged by 42 per cent YoY to Dhs439m, with net profit for H1 hitting Dhs839m – a 25 per cent YoY increase.

AD Ports Group’s revenue more than doubled YoY to Dhs4.18bn in Q2, with the number touching Dhs8.06bn for H1,  a 108 per cent YoY increase. According to oup statement, 46 per cent of H1’s revenue was long-term/sticky revenue (versus 44 per cent of Q1 2024 revenue).

This growth was driven by a combination of organic expansion in its ports, logistics, and digital clusters, along with strategic acquisitions, including Noatum and GFS.

Read: AD Ports Group’s Noatum inaugurates maritime services in Türkiye

On a like-for-like basis, adjusted for mergers and acquisitions (M&A), revenue grew by 6 per cent YoY.

The company’s EBITDA margin stood at 25.6 per cent in Q2 2024, slightly lower than the 33.3 per cent recorded in Q2 2023, reflecting the impact of acquisitions and evolving revenue mix. Despite this, AD Ports Group maintained strong profitability, with net profit after minorities reaching Dhs333m, marking a 16 per cent YoY increase.

AD Ports Group’s total assets grew by 24 per cent YoY to Dhs61.4bn, while total equity increased by 21 per centto Dhs27.2bn.

The group’s net debt to EBITDA ratio remained stable at 3.6 times, indicating controlled leverage amidst continued expansion. Additionally, the company’s credit ratings were affirmed at ‘A+’ and ‘gcAAA’ by S&P Global, citing improved operational performance and a stable outlook.

Captain Mohamed Juma Al Shamisi, MD and group CEO of AD Ports Group, highlighted the success of the group’s international expansion strategy, driven by both acquisitions and organic growth. He emphasised the company’s commitment to navigating current geopolitical challenges while pursuing profitable growth.

AD Ports’ strategic expansion

In Q2 2024, AD Ports Group continued its strategic expansion, signing several key agreements, including a 50-year land lease deal with UAE-based Astha Biotech and a partnership with Adani Ports to enter the Tanzanian market.

The group also acquired an 81 per cent stake in a joint venture to upgrade and operate the Luanda multipurpose port terminal in Angola.

The company noted ongoing disruptions in global supply chains due to geopolitical tensions and challenges in the Red Sea and Gulf of Aden.

Despite these headwinds, AD Ports Group remains optimistic, expecting continued demand and strong rates in the container market through H2 2024.