Abu Dhabi Ports Group's first-half revenue surges 21% in 2021

The company earned a revenue of $490.1m during the period

A ship is offloaded at Khalifa Port in Kizad, Abu Dhabi. Courtesy Abu Dhabi Ports *** Local Caption ***  bz18ma-kizad-01.jpg

Abu Dhabi Ports Group, the operator of industrial cities and free zones in the emirate, reported a 21 per cent increase in revenue during the first six months of the year on the back of organic growth, diversification into new businesses, new leases and partnerships.

The company earned revenue of Dh1.8 billion ($490.1 million), compared with Dh1.52bn for the period ending June 30, 2020.

The port operator's earnings before interest, tax, depreciation and amortisation (Ebitda) rose 8 per cent to Dh770m, compared with Dh714m last year on the back of growth across various business clusters.

"Our financial performance is underpinned by continued expansions and increased activity, with key partnerships and joint ventures being established that are expected to deliver reliable returns in the future," said Abu Dhabi Ports chief executive Captain Mohamed Juma Al Shamsi.

"A significant part of our business is based on long-term contracts that provide reliable and stable revenues."

Activity across ports and commercial centres have picked up as global trade gains steam amid an ongoing economic recovery. The volume of world merchandise trade, which slumped by 5.3 per cent in 2020, is expected to grow by 8 per cent in 2021, according to World Trade Organisation estimates.

Cargo volumes grew 66.67 per cent during the first six months of the year to reach 25 million metric tonnes.

Container throughput, which is measured in 20-foot equivalent units, reached 1.57 million TEUs from 1.59 million TEUs during the same period.

Abu Dhabi Ports also leased around 2.4 million square metres of land during the first half of the year.

"Coming out of the peak of the Covid-19 pandemic, we are focusing on delivering solid returns and managing our capital effectively," said Martin Aarup, chief financial offer at Abu Dhabi Ports.

"Our invested capital increased from Dh19.4bn in 2020 to Dh22.4bn in 2021 in line with our ongoing expansion programme."

Last month, Abu Dhabi Ports signed an agreement with the General Company for Ports of Iraq to explore potential investment opportunities and strengthen co-operation in transportation and maritime sectors.

The UAE company will also develop national infrastructure in Iraq, such as roads and rail networks, which will connect the country’s Al Faw Ports with markets in Jordan and Turkey.

AD Ports also signed an agreement with the Aqaba Development Corporation in September to establish a cruise terminal at the Marsa Zayed project in Aqaba, Jordan – its first cruise facility outside the UAE.

Owned by one of the region’s largest holding companies, ADQ, Abu Dhabi Ports also revealed plans to list on the Abu Dhabi Securities Exchange later this year. The listing is subject to market conditions and regulatory approvals.

Abu Dhabi Ports owns and manages 11 ports and terminals in the UAE and Guinea, including Khalifa Port, Zayed Port, Musaffah Port, Fujairah Terminals, Community Ports, Kamsar Port and Abu Dhabi Cruise Terminal. It operates more than 550 square kilometres of industrial zones within Khalifa Industrial Zone Abu Dhabi (Kizad) and ZonesCorp, the largest integrated trade, logistics and industrial business grouping in the Middle East.

Updated: October 16th 2021, 3:35 PM
EDITOR'S PICKS
NEWSLETTERS