AD Ports third-quarter net income surges as revenue soars

The company’s revenue in the three months to the end of September increased 53%

Established in 2006, AD Ports Group serves as a facilitator of logistics, industry, and trade, as well as a bridge linking Abu Dhabi to the world. AP

AD Ports Group, the operator of industrial cities and free zones in Abu Dhabi, said third-quarter net profit surged 68 per cent as revenue soared.

Net profit attributable to the owners of the company, increased to more than Dh314m ($86m) in the three-month period to the end of September from the same period a year earlier.

The company’s revenue in third quarter increased 53 per cent to Dh1.47 billion 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.

The sales growth was mainly driven by strong performance of the company's maritime cluster and its economic cities and free zones cluster.

Adjusted earnings before interest, taxes, depreciation and amortisation (Ebitda) increased 52 per cent on an annual basis to Dh594m.

“These remarkable results demonstrate the effectiveness and impact of our ambitious growth strategy, as we seek new opportunities even in challenging global market conditions,” said Mohamed Al Shamisi, managing director and group chief executive AD Ports Group.

“We have pursued joint ventures and acquisitions that have built supply chain density along major routes, accelerating trade and building resilience for customers around the world.

"These new ventures have played a key role in expanding our service offering, enabling us to support customers at every stage of their business journey, and delivering exponential growth in our maritime business in particular.”

Established in 2006, AD Ports Group serves as a facilitator of logistics, industry and trade, as well as a bridge linking Abu Dhabi to the world.

The company's nine-month net income attributable to the owners of the company climbed 55 per cent year on year to Dh917m from the same period a year earlier. Revenue for the January-September period increased 35 per cent to nearly Dh3.8bn.

The company said it continued to press ahead with its "ambitious organic revenue generating capital expenditure programme", with spending of Dh1.6bn the third quarter and Dh4.2bn for the first three quarters of the year.

Operating cash flow amounted to Dh1.3bn for the first nine months of the year.

Operationally, ports cluster container volumes grew 31 per cent yearly in the last quarter, driven by increased capacity after the expansion of various terminals last year.

This month, the company also announced the acquisition of an 80 per cent equity stake in Dubai-based Global Feeder Shipping, a global container shipping company, for Dh2.9bn.

GFS, the third largest feeder shipping business globally, operates a service network of 20 services across the GCC, Red Sea, Indian Subcontinent and South-East Asia.

In September, it also completed the acquisition of a 70 per cent stake in International Associated Cargo Carrier in Egypt for Dh514m.

“We have a strong balance sheet … and we see a positive correlation between the fundamentals of the Abu Dhabi economy and the success of our business,” said Martin Aarup, group chief financial officer of AD Ports.

“Our alignment with the emirate’s long-term industrial and manufacturing strategies, the country’s National Food Security Strategy 2051, and the long-term strategy to diversify the economy and boost non-oil exports all auger well for our business in the future.”