Abu Dhabi Ports Q2 income jumps 59% on revenue surge

Net profit in the three-month period to the end of June increased to $81.7m

Abu Dhabi Ports Group reported a 35 per cent increase in its second-quarter revenue. AP

Abu Dhabi Ports Group, the operator of industrial cities and free zones in the emirate, said second-quarter net profit surged 59 per cent on higher revenue as its business continues to rebound from global supply chain disruptions.

Net profit in the three months to the end of June increased to Dh300 million ($81.7m) from the same period a year earlier, the company said in a regulatory filing to the Abu Dhabi Securities Exchange, where its shares are traded.

Revenue increased 35 per cent to Dh1.24 billion during the reporting period, “mainly driven by the maritime and economic cities and free zones clusters, and to a lesser extent by the digital cluster”, the company said.

Adjusted earnings before interest, taxes, depreciation and amortisation (Ebitda) increased 41 per cent on an annual basis to Dh532m.

The company's net income for the first six months of the year climbed 49 per cent year-on-year 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,” said Mohamed Juma Al Shamisi, managing director and group chief executive of the company.

“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.”

Established in 2006, AD Ports Group owns and operates 10 ports in the UAE, including Khalifa Port, Zayed Port, Mussaffah Port, Fujairah Terminals, Community Ports, Kamsar Port and the Abu Dhabi Cruise Terminal, as well as a terminal in Guinea.

It also manages more than 550 square kilometres of industrial zones and an end-to-end logistics business, besides offering a range of maritime services.

The 22.32 per cent stake in Aramex, which was transferred to AD Ports in January, contributed Dh12m to Ebitda and net profit in the April-June period. It accounted for Dh23m in the first-half profit.

The company’s total capital expenditure during the second quarter reached Dh1.6bn.

Maritime cluster including vessel fleet expansion, ports cluster including Khalifa Port expansion and Etihad Rail connectivity, received most of the capex. AD Ports' economic cities and free zones cluster, which includes warehouses, gas network expansion and infrastructure-related investments, also received a fair chunk of spending, the company said.

In June, AD Ports signed a deal with National Marine Dredging Company to set up a joint venture company that will carry out offshore surveys and offer subsea services in the UAE, the GCC and select international markets.

In the same month, it announced its first international acquisition in Egypt with the purchase of a 70 per cent stake in International Associated Cargo Carrier.

Last month, it launched a joint venture with SEG, one of the largest oil and gas companies in Uzbekistan, to open new logistics and freight businesses. It also signed a deal to develop a food storage and distribution hub to enhance Uzbekistan’s food trade across global markets.

The company expects continued pressure on global trade volumes amid macroeconomic headwinds, lockdowns in China and the rising cost of living. However, post Covid-19 pent-up demand for goods will manage to offset some of that pressure, said Ross Thompson, group chief strategy and growth officer of AD Ports Group.

“Global markets are still turbulent with a high inflation environment, rising interest rates, geopolitical tension as well as continued ramifications of the Covid-19 pandemic, including supply chain disruptions and supply shortages,” he said.