AD Ports Group pulls in Dh1.2 billion as 9-month 2024 net profit
ADX-listed port and zones operator continues to make headway in overseas push
Dubai: The AD Ports Group has sailed in with a Dh1.2 billion plus net profit for the nine months of 2024, built on a strong 57% growth in revenue to Dh12.72 billion. The profit tally is up 19% from a year ago.
The Abu Dhabi company - busy with raising its overseas presence, most recently with a deal in Pakistan – confirmed there was ‘strong growth across its core businesses’. Its onshore operations in the form of industrial clusters are also paying off, with recent deals including 50-year land lease agreements with Azizi Developments for 12 factories and another with Abundance Solar Panel Industries to build solar panels and photovoltaic modules.
Better economic situation
“The global economic situation has developed slightly better than expected this year, and the regional macro-environment remains sold, supporting demand and rates for AD Ports Group,” said Capt. Mohamed Juma Al Shamsi, Managing Director and Group CEO.
"As 2024 comes to a close, there is reason for optimism. While geopolitical disruptions continue to affect visibility, seaborne trade volumes are expected to grow 2.2% this year and by 2.0% in 2025."
Debt load
The latest financials show the debt load has risen but within limited levels. This meant an improved net debt-to-EBITDA ratio of 3.5x as of Q3-2024 against 3.6x in Q2 2024 and 4.0x at the end of the same period last year.
In September, AD Ports Group firmed up its liquidity position by refinancing and upsizing its syndicate loan and Islamic debt facility amounting to Dh8.2 billion into two new facilities for a total of Dh10.2 billion, thus 'lowering spreads and extending maturities to 2026 and beyond'. (It was also one of the first UAE companies to announce a refinancing deal after the announcement of the first US Federal Reserve rate cut in September.)
During the third quarter, its net profit after minorities totalled Dh301 million, which is 21% lower than a year ago, 'impacted by a one-off Dh40 million accounting charge related to debt refinancing'.
“Our strong Q3-2024 financial results - in which the Group turned free cash flow positive for the first time on a quarterly basis - provide further corroboration of the accretive growth benefits of our five-pillar business portfolio, which generated strong growth across the board," said Martin Aarup, Group CFO.
"The Group recorded a record quarterly EBITDA of Dh1.21 billion in Q3-2024, up 60% year-on-year, and 63% on a like-for-like basis. Our demonstrated restraint on capex in Q3 2024, and our near 100% cash conversion rate, are strengths that will continue to drive our profitable growth despite prevailing macroeconomic and geopolitical turbulence.”