AD Ports Group Q2 revenue surges by 66% to Dhs2.1bn

UAE’s AD Ports Group reported a 66 per cent year-on-year (YoY) rise in first-quarter revenue, driven by volume growth in key sectors, business diversification as well as local, regional, and international expansion both organically and through mergers and acquisitions (M&A).

The shipping and logistics group’s revenue in the three months to June 30 reached Dhs2.1bn, from Dhs1.2bn in the same period a year earlier.

AD Ports attributed the growth in its revenues to its maritime, digital, and ports clusters portfolios with 208 per cent, 26 per cent, and 22 per cent YoY, respectively.

“With a remarkable 66 per cent YoY revenue growth to Dhs2.1bn, we are successfully executing our diversification strategy and leveraging synergies from our recent acquisitions,” said Mohamed Juma Al Shamisi, managing director and group CEO at AD Ports Group.

The company’s earnings before interests, taxes, depreciation and amortisation (EBITDA) reached Dhs686m in the second quarter of the year, up 29 per cent YoY with an EBITDA margin of 33.3 per cent for the quarter compared to 38.5 per cent in Q2 2022.

AD Ports’ net profit increased by 3 per cent YoY to Dhs310m in Q2 2023 as EBITDA growth was diluted by the increase in depreciation and amortisation charges as well as finance costs associated with the deployment of new assets with deferred revenue effect.

The group’s net operating cash flows reached Dhs508m during the period under review while capital expenditures (capex) stood at Dhs1.8bn as per plan.

AD Ports’ portfolio

AD Ports’ maritime business reported a 208 per cent YoY revenue growth to Dhs1.2bn, driven by the feedering (container and bulk) and offshore logistics and services business segments.

The group’s ports cluster reported Q2 2023 revenue growth of 22 per cent YoY, with container volumes growing by 10 per cent to 1.21 million TEUs (twenty-foot equivalent units).

The cluster also delivered a 64 per cent growth in Ro-Ro volumes, a 152 per cent increase in the number of cruise passengers, and general cargo volumes surged by 40 per cent YoY.

AD Ports signed a 50-year concession agreement to operate and develop the Karachi Gateway Terminal, berths 6 to 9 at Karachi Port, a deal that resulted in immediate earnings contribution.

The company’s digital cluster posted Dhs117m in Q2 2023 revenues, a 26 per cent YoY that was supported by the acquisition of TTEK. TTEK develops and deploys border control solutions and customs systems, and strong performance of ATLP-related services.

AD Ports grows global footprint

Meanwhile, AD Ports completed the acquisition of Spain-based logistics services provider Noatum for Dhs2.65bn in July, a deal that offers the Abu Dhabi-listed logistics giant exposure to maritime and logistics activities in the Mediterranean as well as port facilities in Spain.

Noatum also has a presence across Europe, Asia, Africa, North America and South America.

The company’ foray into the Spanish logistics sector follows a string of deals and agreements that were closed in the first half of the year as the company seeks to become a more diversified and integrated logistics company.

AD Ports, controlled by state investor ADQ, operates the deepwater Khalifa Port in Abu Dhabi along with other ports and logistics parks in the city and the Indian Ocean Fujairah port.

Read: AD Ports Group completes acquisition of Spain’s Noatum