Kuwait’s Agility posts KWD14.2m in Q2 2023 profit

Kuwait’s Agility posted KWD14.2m in second-quarter profit, an 11.7 per cent decrease over the same period a year ago, due to higher interest rate expenses in addition to an increase in the company’s debt.

The logistics firm’s earnings before interest, taxes, depreciation and amortisation (EBITDA) surged 63.4 per cent to KWD60.5 in Q2 2023 despite a decrease in profit while its revenues jumped 136.8 per cent to KWD327.8m.

Agility said on a like-for-like basis, excluding the performance of Menzies Aviation and HG Storage International, the company’s EBITDA increased by 9.5 per cent to KWD41.5m while revenues rose by 8.9 per cent in the second quarter of the year.

The company’s profit in the first six months to June 30 rose by 2.3 per cent to KWD29.4m, EBITDA for the same period increased by 70.4 per cent while revenues soared by 139.7 per cent compared to the same period in 2022.

“We continue to see good results in our operating businesses due to organic growth and our acquisitions in 2022. Global equity markets performed better this quarter, reflecting in our investments segment,” said Tarek Sultan, vice chairman of Agility.

“Nevertheless, we continue to take a longer-term view of our strategic investments.”

Agility’s portfolio companies

The combined EBITDA of Agility’s controlled businesses reached KWD61.2n in the second quarter of 2023 on revenue of KWD327.8m, up 54 per cent and 136.8 per cent, respectively.

Agility’s aviation services, Menzies Aviation, posted KWD162.2m in revenue and KWD21.9m in EBITDA in Q2 2023, an increase of 861.8 per cent and 367.2 per cent, respectively, over the same period a year earlier when the logistics firm was reporting solely on National Aviation Services (NAS) results.

The second quarter results include the results of Menzies Aviation, which was acquired in the third quarter of 2022 in addition to those of the legacy NAS business.

The fuel logistics cluster, Tristar, reported a 76.2 per cent growth in revenue compared to Q2 2022 while its EBITDA surged by 33.5 per cent, driven by the momentum of Agility’s maritime and fuel farms segments.

Tristar’s addition of HG Storage International also contributed to this growth, Agility said in a statement, adding that the Q2 2023 results reflect Tristar’s continued operational improvement and demonstrate the effectiveness of the company’s diversified portfolio.

Meanwhile, the company’s other controlled businesses reported EBITDA of KWD23m and revenue of KWD82.1m, increases of 1 per cent and 9 per cent.

Agility entered into a derivative transaction known as a collar trade with banks to hedge its investment in DSV.

The company signed multi-year funded agreements with banks including Morgan Stanley, Citibank, National Association and Goldman Sachs allowing it to draw down up to EUR1bn.

The Kuwait logistics giant is the second-largest shareholder in DSV, with an 8.8 per cent stake, after it sold its Global Integrated Logistics business to the Danish transport firm in an all-share deal in 2021.

Read: Kuwait’s Agility invests $163m to build Jeddah Logistics Park in Saudi Arabia