The loss of a multibillion-dollar contract with the US government was responsible for a major decline in earnings at Agility, as the region's biggest logistics company reported a 66 per cent drop in third-quarter profits.
The company, based in Kuwait, is the region's largest logistics firm. It lost lucrative contracts to supply food to US troops in Kuwait, Iraq and Jordanafter an indictment against it was issued last year.
The company was accused of overcharging the US government for the supply contracts. After the allegation of fraud, Agility lost its position as the main logistics supplier to the US army in the Gulf. Contracts with the US government reportedly contributed up to 35 per cent of Agility's annual revenues.
In April, the Dubai logistics company Anham was awarded a US$2.2 billion (Dh8.08bn) contract to handle the work after the US government replaced Agility. The US army's contracts with Agility were worth a reported $8.5bn.
The company and the US authorities are in discussions over the dispute. According to a report issued in September, a US magistrate said US prosecutors failed to follow the correct procedures when they indicted the Kuwaiti company. The magistrate said Agility was not properly notified about the charges made against it.
Agility's net income for the third quarter fell to 13.89 million dinars (Dh181.5m), from 40.6m dinars in the same quarter last year. Revenue declined to 405.9m dinars, from 413.6m dinars a year earlier.
"One segment of Agility's business has disappeared, which is the US army contracts, so that is why we are seeing comparable decline in the quarter," said Yazan Abdeen, a fund manager at ING Investment Management in Dubai.
The share price of Agility, which is listed on the Kuwait Stock Exchange, fell by 5.5 per cent in the month leading up to the earnings statement. The stock fell by 3.7 per cent last Thursday alone, closing at 510 fils.
"This expected decrease in profitability and revenue is attributable to the challenges facing Agility's defence and government services business," the company said in a statement quoted by Bloomberg.
"Major US government contracts wind down and the company is unable to replace them with new government business due to the legal case with the US government," the statement added.
Tarek Sultan, the chairman of Agility, said "although we anticipate continued challenges through the middle of 2011, we believe that we will emerge as a stronger and more flexible company".
Next year would be "difficult", Mr Sultan was reported as saying last month. The company is expected to be seeking private-sector contracts following the loss of business from the government sector.
Mr Abdeen said Agility would look east as it sought to increase its profits and replace lost business. "The company has become more active in initiating new streams of revenues. They have a very talented management," he said.
"Their new direction now is to raise money from Asia and I would expect Agility's new focus will offset the loss of business from the US army."
*with reporting from Hadeel al Sayegh
bflanagan@thenational.ae
halsayegh@thenational.ae
Skewed figures
In the village of Mevagissey in southwest England the housing stock has doubled in the last century while the number of residents is half the historic high. The village's Neighbourhood Development Plan states that 26% of homes are holiday retreats. Prices are high, averaging around £300,000, £50,000 more than the Cornish average of £250,000. The local average wage is £15,458.
The smuggler
Eldarir had arrived at JFK in January 2020 with three suitcases, containing goods he valued at $300, when he was directed to a search area.
Officers found 41 gold artefacts among the bags, including amulets from a funerary set which prepared the deceased for the afterlife.
Also found was a cartouche of a Ptolemaic king on a relief that was originally part of a royal building or temple.
The largest single group of items found in Eldarir’s cases were 400 shabtis, or figurines.
Khouli conviction
Khouli smuggled items into the US by making false declarations to customs about the country of origin and value of the items.
According to Immigration and Customs Enforcement, he provided “false provenances which stated that [two] Egyptian antiquities were part of a collection assembled by Khouli's father in Israel in the 1960s” when in fact “Khouli acquired the Egyptian antiquities from other dealers”.
He was sentenced to one year of probation, six months of home confinement and 200 hours of community service in 2012 after admitting buying and smuggling Egyptian antiquities, including coffins, funerary boats and limestone figures.
For sale
A number of other items said to come from the collection of Ezeldeen Taha Eldarir are currently or recently for sale.
Their provenance is described in near identical terms as the British Museum shabti: bought from Salahaddin Sirmali, "authenticated and appraised" by Hossen Rashed, then imported to the US in 1948.
- An Egyptian Mummy mask dating from 700BC-30BC, is on offer for £11,807 ($15,275) online by a seller in Mexico
- A coffin lid dating back to 664BC-332BC was offered for sale by a Colorado-based art dealer, with a starting price of $65,000
- A shabti that was on sale through a Chicago-based coin dealer, dating from 1567BC-1085BC, is up for $1,950
COMPANY PROFILE
Name: HyperSpace
Started: 2020
Founders: Alexander Heller, Rama Allen and Desi Gonzalez
Based: Dubai, UAE
Sector: Entertainment
Number of staff: 210
Investment raised: $75 million from investors including Galaxy Interactive, Riyadh Season, Sega Ventures and Apis Venture Partners
Real estate tokenisation project
Dubai launched the pilot phase of its real estate tokenisation project last month.
The initiative focuses on converting real estate assets into digital tokens recorded on blockchain technology and helps in streamlining the process of buying, selling and investing, the Dubai Land Department said.
Dubai’s real estate tokenisation market is projected to reach Dh60 billion ($16.33 billion) by 2033, representing 7 per cent of the emirate’s total property transactions, according to the DLD.
Golden Shoe top five (as of March 1):
Harry Kane, Tottenham, Premier League, 24 goals, 48 points
Edinson Cavani, PSG, Ligue 1, 24 goals, 48 points
Ciro Immobile, Lazio, Serie A, 23 goals, 46 points
Mohamed Salah, Liverpool, Premier League, 23 goals, 46 points
Lionel Messi, Barcelona, La Liga, 22 goals, 44 points
Wenger's Arsenal reign in numbers
1,228 - games at the helm, ahead of Sunday's Premier League fixture against West Ham United.
704 - wins to date as Arsenal manager.
3 - Premier League title wins, the last during an unbeaten Invincibles campaign of 2003/04.
1,549 - goals scored in Premier League matches by Wenger's teams.
10 - major trophies won.
473 - Premier League victories.
7 - FA Cup triumphs, with three of those having come the last four seasons.
151 - Premier League losses.
21 - full seasons in charge.
49 - games unbeaten in the Premier League from May 2003 to October 2004.
The specs
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Transmission: Eight-speed auto
Fuel economy, combined: 6.5L/100km
On sale: December
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Specs
Engine: 51.5kW electric motor
Range: 400km
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The White Lotus: Season three
Creator: Mike White
Starring: Walton Goggins, Jason Isaacs, Natasha Rothwell
Rating: 4.5/5
How to register as a donor
1) Organ donors can register on the Hayat app, run by the Ministry of Health and Prevention
2) There are about 11,000 patients in the country in need of organ transplants
3) People must be over 21. Emiratis and residents can register.
4) The campaign uses the hashtag #donate_hope
