AD Ports Group's profit climbs on revenue boost

Abu Dhabi Ports Group , the operator of industrial cities and free zones in the emirate, said first-half net income rose more than 2 per cent on higher revenue, driven by recent acquisitions and its continued diversification strategy. Net profit for the six-month period to the end of June rose to Dh616.77 million ($168 million), the company said in a filing to the Abu Dhabi Securities Exchange, where its shares are traded. Half-yearly revenue jumped 69 per cent to Dh3.87 billion, driven by its maritime, digital and ports business clusters. Net income for the second quarter of this year softened by 4 per cent on an annual basis to Dh286 million, as growth was “diluted by the increase in depreciation and amortisation charges as well as finance costs associated with deployment of new assets with deferred revenue effect”, the company said. Earnings before interest, tax and amortisation (ebitda), however, surged by 29 per cent to Dh686 million. Revenue for the three-month period also rose 66 per cent to Dh2.06 billion. "We are successfully executing our diversification strategy and leveraging synergies from our recent acquisitions, paving the way for continued growth and value creation for our stakeholders," Mohamed Al Shamisi, managing director and group chief executive of AD Ports, said. Established in 2006, AD Ports, which owns and operates 10 ports in the UAE, has been expanding its operations globally. In recent quarters, the group has acquired several assets and signed port management concession agreements across multiple markets in a bid to expand its global reach. Last month, AD Ports acquired Spanish integrated logistics platform Noatum after receiving final approval for the deal from the Spanish authorities. Noatum, with an enterprise value of Dh2.5 billion, has a presence in 26 global markets. Given the scope of its services, Noatum is leading AD Ports Group's logistics cluster, AD Ports said in a statement to the ADX at the time. “Going forward, AD Ports Group’s revenue mix is likely to be more balanced across four of its five clusters with the recently completed acquisition of Noatum,” the company said on Tuesday. “Based on 2023’s first six months financial performance for both AD Ports Group and Noatum, the latter accounts for over 50 per cent of AD Ports Group’s revenue and 13 per cent of its ebitda.” In June, AD Ports signed a 50-year concession agreement with Pakistan’s Karachi Port Trust. The deal includes an investment of $220 million to develop a new concession at Karachi port aimed at boosting its growth over the next 10 years. The UAE-based company also signed a 30-year concession agreement with the government of the Republic of Congo to manage and operate a multipurpose terminal at the New East Mole port in Pointe-Noire. The Abu Dhabi company is also teaming up with Egypt's Red Sea Ports Authority to develop and operate a multipurpose terminal at Port Safaga. Earlier this year, it also signed a partnership with Kazakhstan's state energy company KazMunayGas and a preliminary accord with the country's Ministry of Industry and Infrastructural Development to co-operate in the development of a national marine fleet and coastal infrastructure in the Caspian and Black seas. The company on Tuesday said its maritime, digital, and ports business clusters are proving to be the key growth drivers for the company, with 208 per cent, 26 per cent, and 22 per cent annual growth, respectively, in the second quarter of this year. The company’s “resilient growth” is driven by its expanded service offering and geographic diversification, Martin Aarup, group chief financial officer at AD Ports, said. “At the same time, we continue to invest large amounts of Capex [capital expenditure], Dh1.8 billion in Q2 2023, which will drive our future growth," he added.

AD Ports Group's profit climbs on revenue boost

First-half income was supported by recent acquisitions and the continuing diversification strategy