Dubai: The AD Ports Group sailed past the Dh400 million mark in net profit for the third quarter, to weigh in at Dh403 million. That’s up 20 per cent, while for the first nine months the profit tally eased past Dh1 billion against Dh940.5 million a year ago.
The numbers come as the Abu Dhabi ports and free zone operator steadily expanded its non-UAE presence through long-term management contracts as well as stake buys in logistics companies.
"AD Ports Group has achieved remarkable growth in Q3 2023, underpinned by our strategic M&A activities and our strong relationships with diverse local economies, looking beyond traditional terminal operations and toward collaborations,” said Capt. Mohamed Juma Al Shamisi, Managing Director and Group CEO.
On the top-line, the July to September period delivered Dh4.23 billion, a substantial increase on the Dh1.46 billion same time last year. And across the nine months, the revenue hit Dh8.1 billion, well over the Dh3.7 billion from 2022.
The robust top-line growth not only reflects our efforts to develop new trade routes, strengthen service offerings to our key trading partners, and invest in our key customers in global supply chains, but stands as a clear indicator of our effective diversification strategy and operational excellence.
“The robust top-line growth not only reflects our efforts to develop new trade routes, strengthen service offerings to our key trading partners, and invest in our key customers in global supply chains, but stands as a clear indicator of our effective diversification strategy and operational excellence,” said Al Shamisi in the statement.
Dh 15 bAD Ports Group's capex program for 2023-27
Steaming in with more investments
On EBITDA margins, the company's projection is for 25-30 per cent in the medium term as it expects the 'revenue mix to continue to rebalance while it continues to invest heavily, both organically and inorganically, in the foreseeable future'.
"The Group also expects its operating profitability to rebalance as it gradually delivers on extracting synergies from densifying our vertically integrated ecosystem and scaling up operations," the statement said.
Overall capital expenditures came to Dh800 million in Q3-2023, and for the year-to-date outlay to Dh3.65 billion. This is 'in line with our front-loaded Dh15 billion capex programme between 2023-27', AD Ports Group added.
“The temporary dip in net operating cash flows is related to our strategic investments and vessel trading activities and we anticipate a normalisation in our leverage and a rebound in Q4," said Martin Aarup, Group Chief Financial Officer, AD Ports Group.
"Our continued focussed investments - both organically and inorganically - align with our long-term vision to enhance shareholder value and our commitment to the diversification of the UAE's economy.
More to follow...