Dubai: Abu Dhabi Ports - the operator of ports, free zones and maritime operations in the emirate - reported a 59 per cent surge in net profit to Dh300 million in Q2-2022.
The Group’s revenue increased 35 per cent to Dh1.24 billion during the reporting period, mainly driven by the Maritime and Economic Cities & Free Zones (EC&FZ) Clusters.
EBITDA increased 41 per cent to Dh532 million in Q2-2022.
The company’s net profit for the first six months of the year climbed 49 per cent to Dh606m. Revenue for the reporting period increased 25 per cent to Dh2.29bn.
“The momentum of our growth journey has accelerated throughout the first half of the year, and we anticipate continuing to deliver on our performance for the remainder of the year,” Captain Mohamed Juma Al Shamisi, Managing Director and Group CEO, AD Ports Group. “The Group’s core businesses have continued to rebound from the severe supply chain disruptions of last year while our new ventures, enhanced service offering, and diversification strategy into synergistic new businesses have been yielding positive results.”
The 22.32 per cent stake in Aramex, which was transferred to AD Ports Group in January 2022, contributed Dh12 million to EBITDA and net profit in April-June period. It accounted for Dh23 million in the first six months of 2022.
The Group’s capital expenditure during Q2-2022 reached Dh1.6 billion.
Maritime Cluster (vessel fleet expansion), the Ports Cluster (Khalifa Port expansion and Etihad Rail connectivity), and the Economic Cities & Free Zones Cluster (new warehouses, gas network expansion and infrastructure-related investments to unlock additional land), received most of the company’s capex.
Busy making deals
In June 2022, AD Ports Group reached an agreement with National Marine Dredging Company (NMDC) to set up a new joint venture to offer offshore surveys and subsea services in the UAE, the GCC, and some international markets.
In the same month, AD Ports Group announced its first international acquisition in Egypt with the purchase of a 70 per cent stake in International Associated Cargo Carrier (IACC).
In July 2022, AD Ports Group launched a joint venture with SEG, one of the largest oil and gas companies in Uzbekistan, to open new logistics and freight businesses. The Group signed a deal to develop a food storage and distribution hub to enhance Uzbekistan’s food trade across global markets and drive Central Asian food security.
“Global markets are still turbulent with a high inflation environment, rising interest rates, geopolitical tensions as well as continued ramifications of the COVID-19 pandemic, including supply chain disruptions and supply shortages,” said Ross Thompson, Group Chief Strategy and Growth Officer, AD Ports Group.
Therefore, pressure on global trade volumes is increasing with macroeconomic headwinds, lockdowns in China and a ‘cost of living crisis’ but has been largely offset by post COVID-19 pent-up demand for goods for the time being, he said. As a result, global seaborne container trade volumes decreased around 2.5 per cent in H1-2022, with full-year forecasts expected to finish higher at near 1 per cent growth.
On the other hand, shipping rates remain at extraordinary levels and their outlook for the rest of the year remains positive, with continuing disruptions providing support despite trade headwinds.