Abu Dhabi's AD Ports records 2021 net profit of Dh845m and is all set for ADX listing after Dh4b IPO
AD Ports is latest Abu Dhabi blue-chip to join the Dh1.6t ADX
Dubai: Abu Dhabi’s AD Ports Group, which will list on ADX today (February 8), recorded a 14 per cent increase in revenues for 2021, at Dh3.9 billion, while net profit came to Dh845 million from Dh307 million a year ago. Clearly, better shipping and container movements after the COVID-19 disruptions of 2020 had a hand in the improved numbers.
AD Ports, which raised Dh4 billion via its IPO, now has total assets of Dh28.5 billion – but this does not reflect the company’s recent stake holdings in the delivery company Aramex (of 22.32 per cent) and the Abu Dhabi marine dredging contractor NMDC (10 per cent). The combined market value of these stakes was approximately Dh2.4 billion based on the closing price of Aramex and NMDC shares on February 7.
Shares in the port operator climbed to Dh3.69 dirhams on Tuesday, up from their offering price of Dh3.20. AD Ports, controlled by sovereign wealth fund ADQ, sold 1.25 billion shares in the listing.
- Bloomberg
On the operational side, AD Ports oversaw cargo and container volumes of a “record” 45 million tonnes and 3.4 million TEUs, respectively, while new land leases at its industrial zones totalled 3 million square metres.
“These excellent results (for 2021) demonstrate that AD Ports Group has consolidated our leadership position during a period where global trade and supply chains have experienced many challenges," said Falah Mohammed Al Ahbabi, Chairman.
“As we continue to build the knowledge and expertise required to take our business to the next level and utilize the Dh4 billion in cash proceeds from the pre-listing issuance, we believe that the Group is well positioned to accelerate its local and international expansion plans in 2022,” said Capt. Mohamed Juma Al Shamsi, Group CEO, AD Ports Group.
According to Martin Aarup, Group Chief Financial Officer, "AD Ports Group benefits from our well-balanced capital structure, investment-grade credit ratings, and stable long-term cashflows. This was evidenced by 14 per cent revenue growth compared to 2020.”
ADX's next big bang IPO
Since early 2020, there have been six major IPOs on ADX as the stock market propelled itself to a Dh1.6 trillion plus capitalization, with Etisalat and International Holding Company being the standout stocks. The AD Ports Group listing today is the first big one of the year.
“The shares will be listed in ADX’s ‘first market – first category’,” said Vijay Valecha, Chief Investment Officer at Century Financial. “AD Ports is the operator of the emirate’s biggest free zones and industrial clusters, apart from ports and container terminals. Of late, the company has been widening its regional presence with deals in Iraq and Jordan.”
The Abu Dhabi government-owned holding company ADQ owns the majority stake in Abu Dhabi Ports.
- Last year, AD Ports signed a 35-year concession with CMA to build a new container terminal in Khalifa Port with a total JV investment of Dh565 million.
- There was also a collaboration agreement with Turkey’s sovereign wealth fund - Turkiye Varlik Fonu - to explore major investment opportunities within Turkey.
- There were also multiple agreements with Aqaba Development Corp. to support the development of tourism, logistics, transport and digital infrastructure in Aqaba, Jordan.