AD Ports Group reports 41% rise in net profit for Q1 2022

AD Ports Group reported a net profit of Dhs306m for the first quarter, ending March 31, 2022, up 41 per cent year-on-year compared to Dhs218m during an year-earlier period.

The group also reported Dhs1.047bn in revenue for Q1 2022, posting 15 per cent year-on-year growth, compared to Dhs910m. Adjusted EBITDA for the period increased 34 per cent year-on-year to Dhs524m, compared to Dhs393m recorded in the first quarter of last year.

.@ADPortsGroup’s net profit rose to a record AED306m in Q1 2022, reflecting the success of steps taken to strengthen its core business and its continuing contribution to #AbuDhabi’s economy. pic.twitter.com/G2FLx0OmxM

— مكتب أبوظبي الإعلامي (@admediaoffice) May 13, 2022

Adjusted EBITDA benefitted from a one-off gain of Dhs73m from the sale of a purpose-built warehouse to a related strategic customer to conclude a long-term contract with the said customer, Abu Dhabi Government Media Office reported.

Total assets and total equity reached Dhs34.085bn and Dhs17.77bn, respectively, at the end of Q1 2022. Consolidated capital expenditure during the period was Dhs967m, with investments primarily in the expansion of the vessel fleet as well as enhancements to Khalifa Port South Quay, Khalifa Logistics Port, and new build warehouses, a statement said.

Captain Mohamed Juma Al Shamsi, managing director and group CEO, AD Ports Group, said: “The group’s core businesses are rebounding from the supply chain disruptions of the recent period, while our dynamic new ventures are yielding positive results. Our integrated business model, built upon a firm foundation of long-term contracts and enhanced service offerings, continues to drive growth.”

AD Ports Group signed 3.2 sq km of new land leases during the period, more than the annual land leases signed in either 2021 or 2020. It partnered with UAE conglomerate Ghassan Aboud Group, to establish one of the region’s largest wholesale food trading and logistics hub in KIZAD.

Read: Abu Dhabi to house zero-waste wholesale food trading hub

Container volumes grew by 23 per cent year-on-year. During Q1 2022, new maritime business initiatives such as feedering, transhipment, offshore logistics and supply as well as vessel chartering services grew by 167 per cent year-on-year to contribute around Dhs168m of the group’s total revenue.

In January 2022, ADQ transferred ownership in two listed companies to AD Ports Group comprising a 22.32 per cent stake in logistics firm Aramex and a 10 per cent stake in UAE-based contractor National Marine Dredging Company.

Read: AD Ports Group lists shares on Abu Dhabi Securities Exchange

In February 2022, AD Ports Group announced that it had acquired Divetech Marine Engineering Services, with a subsequent listing on the Abu Dhabi Securities Exchange (ADX).