AD Ports posted a 6 per cent rise in net profit, reaching Dh1.36 billion during the year. Image Credit: Supplied

AD Ports Group reported on Wednesday its revenue more than doubled to Dh11.68 billion in 2023, driven by its maritime and shipping, ports, logistics, and digital businesses, as well as its recent Noatum acquisition.

During the year, total net profit reached Dh1.36 billion in 2023, up 6 per cent from last year, while core earnings (EBITDA) increased 23 per cent to Dh2.67 billion in 2023.

“Looking ahead, persistent Red Sea disruptions are expected to continue to bolster both rates and demand for freight and might have a more pronounced knock-on effect on AD Ports Group operations,” the company said in a statement.

“Last year ended with renewed supply chain pressures caused by geopolitical tensions in the Middle East and the resulting Red Sea disruptions. These disruptions have significantly altered market perspectives moving into 2024, positively affecting both volumes and prices.

“The increased transit time of around two weeks for vessels on the main East-West trade lane, rerouted through the Cape of Good Hope, has resulted in a stronger demand for tonnage. This, in turn, has not only been absorbing new supply coming online, but also initiated an upward trend in freight rates, mainly for ocean freight at this time.”

It also reported that its EBITDA was impacted by a notable non-cash exceptional one-off impairment charge of Dh139 million related to an investment in a listed associate in the fourth quarter of 2023.

Adjusting for the negative impact of this one-off, EBITDA would have increased by 29 per cent in 2023, the firm added.