AD Ports Group, the operator of industrial cities and free zones in Abu Dhabi, reported a five-fold jump in its fourth quarter net profit as revenue surged on the back of acquisitions in the UAE and abroad.
Net profit attributable to owners of the company for the three months to the end of December 2024 climbed to Dh383 million ($104.2 million), from Dh74 million reported during the same period a year earlier, the company said on Friday in a statement to the Abu Dhabi Securities Exchange where its shares are traded.
Revenue during the September-December period rose 28 per cent on an annual basis to Dh4.5 billion.
The group’s full-year profit rose 24 per cent year-on-year to Dh1.3 billion, as revenue grew 48 per cent to Dh17.2 billion.
Last year “marked another year of record revenue and earnings with the group delivering on its primary mission to enable trade,” said Capt Mohamed Al Shamsi, managing director and group chief executive of AD Ports.
“Not only did we deploy an agile, effective business strategy that translated geopolitical uncertainty in some regions into record revenue and profit, but we also leveraged the integration of our recent acquisitions to attain a new level of efficiency, international significance, and to maximise the financial synergies from the consolidation of the acquired entities.”
AD Ports completed several new deals last year including acquiring 100 per cent of APM Terminals Castellon in Spain, as well as buying a 60 per cent stake in Dubai Technologies – a trade and transportation solutions developer based in Dubai.
It also acquired 60 per cent stake in Tbilisi Dry Port, a key logistics terminal in Georgia, and secured 81 per cent ownership in the joint venture that signed a 20-year concession to operate and upgrade the existing Luanda Multipurpose Port Terminal in Angola.
The Abu Dhabi company also completed the restructuring and integration of Spanish logistics platform Noatum Group’s assets into AD Ports Group’s existing business verticals to boost its portfolio.
Established in 2006, AD Ports’ portfolio includes 33 terminals, with a presence in more than 50 countries, and economic zones spanning more than 550 square kilometres.
Red Sea uncertainty and Tariffs
The company said all the major global shipping lines continue to avoid the Red Sea, despite a ceasefire deal in Gaza.
“Given recent developments on the subject, a resumption of the conflict, and thus of attacks in the Red Sea, is a possible scenario that cannot be excluded. Global shipping companies are still not ready to return to the Red Sea trade route because of this uncertainty and fear that Yemen's Houthis could intensify again their attacks,” it said.
The imposition of new tariffs by the US is likely to create further trade tension and supply chain disruption globally, leading to changes in trade patterns and flows, with long-term implications to trade corridors, AD Ports said.
“It is likely that China builds up its links with the Global South and that trade among Global South nations accelerates in retaliation to the US tariffs. In other words, it could create opportunities for AD Ports Group, which has been increasing its exposure to Global South nations,” it added.
This month, US announced a 10 per cent duty on all goods imported from China into the US. It also ordered a 25 per cent import tax on all steel and aluminium entering the US, set to take effect on March 12.
