AD Ports first-quarter net income jumps as revenue surges

Company’s revenue grew 73 per cent annually in the January-March period

Established in 2006, AD Ports Group serves as a facilitator of logistics, industry and trade. AP

Abu Dhabi Ports Group, the operator of industrial cities and free zones, reported an 8.5 per cent increase in its first-quarter net profit as strong business performance and the company's acquisitions boosted revenue.

Net profit attributable to owners for the January-March period jumped to Dh330.9 million ($90 million), the company said in a filing on Monday to the Abu Dhabi Securities Exchange, where its shares are traded.

The company’s revenue grew 73 per cent annually to more than Dh1.8 billion in the first quarter, “driven by the robust performance” of its maritime, economic cities and free zones, and ports clusters, as well as the acquisitions made in 2022 and the first quarter of 2023 — including Transmar and TCI in Egypt as well as Divetech, ASCL, Safeen Subsea and Al Eskan Al Jamae in Abu Dhabi, the company said.

“Our investment in organic growth is bearing fruit and the strategic M&A [merger and acquisition] activity we undertook has provided a further boost to our growth,” said Capt Mohamed Al Shamisi, managing director and group chief executive of AD Ports Group.

“As we press ahead with our five-year capex plan [2023-2027] of around Dh15 billion and further expand our capabilities and market presence … we expect our growth trajectory to continue, especially since the macro outlook for the UAE and the region remains positive.”

Established in 2006, the AD Ports Group, which owns and operates 10 ports in the UAE, has been expanding its operations globally.

Last month, AD Ports’ digital arm Maqta Gateway announced the acquisition of TTEK, a developer of border control solutions and customs systems, for $26.7 million to expand its digital trade solutions portfolio.

In March, it signed a 30-year concession agreement with Egypt's Red Sea Ports Authority to develop and operate a multipurpose terminal at Port Safaga to boost operations in the country.

In January, the company also signed a partnership with Kazakhstan's state energy company KazMunayGas and a preliminary accord with the country's Ministry of Industry and Infrastructural Development to co-operate in the development of a national marine fleet and coastal infrastructure in the Caspian and Black seas.

AD Ports also teamed up with Angolan organisations in January to develop and improve maritime connectivity along Africa’s west coast.

In April, the company signed a funding deal worth $2 billion with a syndicate of 13 regional and international banks to strengthen its financial position. It secured funding through a general corporate facility agreement.

In the first quarter, the company’s earnings before interest, taxes, depreciation and amortisation increased 33 per cent year-on-year to Dh699 million.

It generated net operating cash flows of Dh335 million.

The maritime cluster reported sales growth of 259 per cent yearly to Dh915 million, on the back of “capacity increases, wider service offerings and increased activity in new business segments”, AD Ports said.

The economic cities and free zones division reported a jump of 13 per cent to Dh429 million in the January to March period.

It was driven by previously signed leases, higher utilities revenue and the merger with property developer Al Eskan Al Jamae in Abu Dhabi, the company said.

The ports cluster posted a revenue of Dh314 million, nearly 24 per cent up compared with the first quarter of last year.

Ports cluster container volumes grew 18 per cent on an annual basis, mainly boosted by the gradual recovery from the Covid-19 pandemic and supply chain disruptions, the company said.

AD Ports’ logistics cluster added Dh139 million to the company’s revenue in the first quarter, while the digital business contributed Dh101 million.