Kuwait's Agility, one of the biggest logistics companies in the Gulf, posted an 8 per cent year-on-year rise in its third-quarter net profit on the back of growth in its infrastructure business even as global trade tensions affected its logistics unit.
Net income for the three months ending September 30 rose to 21.7 million Kuwaiti dinars (Dh262m), Agility said in a statement to the Dubai Financial Market on Thursday. Third-quarter net revenue climbed 6.5 per cent to 133.3m dinars.
"Our Infrastructure portfolio of companies drove our results in the third quarter, with all major entities seeing growth," Tarek Sultan, Agility vice chairman and chief executive, said. "Our Global Integrated Logistics (GIL) business, on the other hand, was affected by challenging market conditions and trade war headwinds that have affected the industry as a whole."
Agility's infrastructure companies' revenue jumped 13 per cent in the third quarter to 119.7m dinars driven by growth across all of its businesses, led by Agility Logistics Parks.
"Near-term growth will be driven by development of new logistics parks and warehouses in Saudi Arabia and Africa, along with optimisation of the company’s land bank in Kuwait," the company said.
Agility's core logistics business Global Integrated Logistics (GIL) recorded earnings before interest, tax, depreciation and amortisation (Ebitda) of 7.8m dinars, excluding the impact of new IFRS16 accounting rules, a 1 per cent decline from same period in 2018.
GIL posted third quarter net revenue of 67.3m dinars, a 4 per cent increase year-on-year, or 5.3 per cent increase on a constant currency basis.
GIL's overall net revenue increase was driven mainly by growth in ocean freight, project logistics and contract logistics, Agility said.
Air freight volumes fell 15.8 per cent on the back of lower customer demand across industries and regions, it noted.
The decline in volume was partially offset by higher yields — expressed as net revenue per tonne — which increased 15.5 per cent. As a result, air freight net revenue decreased 2.8 per cent compared to the same quarter last year.
Shrinkage in air freight volumes is in line with a global decline in air cargo of 4.5 per cent in September compared to the same month a year ago — the 11th consecutive month of decline in freight volumes and the longest period since the 2008 global financial crisis, industry body International Air Transport Association (Iata) said in its latest report.
"The US-China trade war continues to take its toll on the air cargo industry. October’s pause on tariff hikes between Washington and Beijing is good news," Alexandre de Juniac, Iata's director general said earlier this month. "But trillions of dollars of trade is already affected … and we can expect the tough business environment for air cargo to continue."
Explainer: Tanween Design Programme
Non-profit arts studio Tashkeel launched this annual initiative with the intention of supporting budding designers in the UAE. This year, three talents were chosen from hundreds of applicants to be a part of the sixth creative development programme. These are architect Abdulla Al Mulla, interior designer Lana El Samman and graphic designer Yara Habib.
The trio have been guided by experts from the industry over the course of nine months, as they developed their own products that merge their unique styles with traditional elements of Emirati design. This includes laboratory sessions, experimental and collaborative practice, investigation of new business models and evaluation.
It is led by British contemporary design project specialist Helen Voce and mentor Kevin Badni, and offers participants access to experts from across the world, including the likes of UK designer Gareth Neal and multidisciplinary designer and entrepreneur, Sheikh Salem Al Qassimi.
The final pieces are being revealed in a worldwide limited-edition release on the first day of Downtown Designs at Dubai Design Week 2019. Tashkeel will be at stand E31 at the exhibition.
Lisa Ball-Lechgar, deputy director of Tashkeel, said: “The diversity and calibre of the applicants this year … is reflective of the dynamic change that the UAE art and design industry is witnessing, with young creators resolute in making their bold design ideas a reality.”
October 26: Bahrain withdraws from a proposal to create a federation of nine with the seven Trucial States and Qatar.
December: Ahmed Al Suwaidi visits New York to discuss potential UN membership.
1971
March 1: Alex Douglas Hume, Conservative foreign secretary confirms that Britain will leave the Gulf and “strongly supports” the creation of a Union of Arab Emirates.
July 12: Historic meeting at which Sheikh Zayed and Sheikh Rashid make a binding agreement to create what will become the UAE.
July 18: It is announced that the UAE will be formed from six emirates, with a proposed constitution signed. RAK is not yet part of the agreement.
August 6: The fifth anniversary of Sheikh Zayed becoming Ruler of Abu Dhabi, with official celebrations deferred until later in the year.
August 15: Bahrain becomes independent.
September 3: Qatar becomes independent.
November 23-25: Meeting with Sheikh Zayed and Sheikh Rashid and senior British officials to fix December 2 as date of creation of the UAE.
November 29: At 5.30pm Iranian forces seize the Greater and Lesser Tunbs by force.
November 30: Despite a power sharing agreement, Tehran takes full control of Abu Musa.
November 31: UK officials visit all six participating Emirates to formally end the Trucial States treaties
December 2: 11am, Dubai. New Supreme Council formally elects Sheikh Zayed as President. Treaty of Friendship signed with the UK. 11.30am. Flag raising ceremony at Union House and Al Manhal Palace in Abu Dhabi witnessed by Sheikh Khalifa, then Crown Prince of Abu Dhabi.
December 6: Arab League formally admits the UAE. The first British Ambassador presents his credentials to Sheikh Zayed.
David Einhorn closed out 2018 with his biggest annual loss ever for the 22-year-old Greenlight Capital.
The firm’s main hedge fund fell 9 per cent in December, extending this year’s decline to 34 percent, according to an investor update viewed by Bloomberg.
Greenlight posted some of the industry’s best returns in its early years, but has stumbled since losing more than 20 per cent in 2015.
Other value-investing managers have also struggled, as a decade of historically low interest rates and the rise of passive investing and quant trading pushed growth stocks past their inexpensive brethren. Three Bays Capital and SPO Partners & Co., which sought to make wagers on undervalued stocks, closed in 2018. Mr Einhorn has repeatedly expressed his frustration with the poor performance this year, while remaining steadfast in his commitment to value investing.
Greenlight, which posted gains only in May and October, underperformed both the broader market and its peers in 2018. The S&P 500 Index dropped 4.4 per cent, including dividends, while the HFRX Global Hedge Fund Index, an early indicator of industry performance, fell 7 per cent through December. 28.
At the start of the year, Greenlight managed $6.3 billion in assets, according to a regulatory filing. By May, the firm was down to $5.5bn.
