Dubai: The AD Ports Group is doing a lot of things just right as first-half revenues more than doubled to a whopping Dh8 billion, while net profit sailed in with Dh839 million, a gain of 25 per cent.
In the second quarter alone, revenue cleared Dh4.18 billion, while the profit tally was Dh439 million.
“Our strong second-quarter results provide further compelling proof of the success of AD Ports Group’s targeted, value-enhancing international expansion - which is being driven not only by acquisitions, but also by solid organic growth across our core businesses,” said Capt. Mohamed Juma Al Shamisi, Managing Director and Group CEO.
“We are on course for the profitable ‘internationalisation’ of the Group.”
And that ‘innovative thinking’ will ‘guide us through the current geopolitical headwinds’.
Driving H1-24 numbers were 'organic growth' in its Ports, Logistics and Digital Clusters, and by the 'acquisitions of Noatum and GFS on the inorganic front'.
Capex spending
In all, Dh1.18 billion was spent as capex on organic growth in Q2-2024, and Dh2.45 billion for the first-half, which is in 'line with the Group’s organic capital investment guidance of Dh12 billion to Dh15 billion for the next five years and its yearly guidance of Dh4 billion to Dh4.5 billion.
"Our strong Q2-2024 financial results reflect the effects of recent accretive acquisitions, and the positive organic growth of our five-pillar business portfolio, which was led during this period by our Ports, Logistics and Digital clusters," said Martin Aarup, Group CFO. "The Group recorded EBITDA of Dh1.07 billion in Q2-2024, up 56% year-on-year, and 8 per cent on a like-for-like basis excl. the base effect of M&A."
The group's handled general cargo volumes rose 46 per cent year-on-year to 12.8 million tons in Q2-2024, largely 'driven by the consolidation of Noatum Terminals (Spain) and KGTML in Karachi, Pakistan'.
The cruise passenger numbers, however, dropped 73 per cent due to the 'impact of the Red Sea disruptions on the Aqaba Cruise Terminal operations (in Jordan), and due to a base effect coming from ad hoc business booked last year in April and May (after the usual cruise season that runs up until March in the UAE) that was not repeated this year'.
Full steam ahead on more international forays
"We plan to accelerate this strategy of ‘intelligent internalisation’ to leverage synergies of our expanding business ecosystem and global footprint to drive the economic diversification of the UAE away from the energy sector," said Ross Thompson, Group Chief Strategy and Growth Officer.
