AD Ports Group reports record net profit of AED 306 mln for Q1 2022
AD Ports Group today announced its financial results for the quarter ended 31 March 2022. The Group reported revenue growth of 15 percent year-on-year to AED 1,047 million for Q1 2022, compared with AED 910 million in 2021, with growth across most clusters and a strong contribution from new partnerships and business lines, according to the company's release.
Adjusted EBITDA for the period increased by 34 percent year-on-year to AED 524 million (Q1 2021: AED 393 million). Adjusted EBITDA benefitted from a one-off gain of AED 73 million from the sale of a purpose-built warehouse to a related strategic customer as part of concluding a long-term contract with said customer, which will positively impact Ports, Logistics and Economic Cities & Free Zones clusters going forward. The adjusted EBITDA margin for the period was higher year-on-year by 7 percentage points at 50 percent.
Net profit was up 41 percent year-on-year to AED 306 million (Q1 2021: AED 218 million). When adjusted for the AED 73 million one-off gain, the Group’s revenue, adjusted EBITDA, and net profit results grew by 15 percent, 15 percent, and 7 percent year-on-year respectively.
Total assets and total equity reached AED 34.085 billion and AED 17.770 billion, respectively, at the end of Q1 2022.
Consolidated capital expenditure during the period was AED 967 million, with investments primarily in the expansion of the vessel fleet as well as enhancements to Khalifa Port South Quay, Khalifa Logistics Port, and new build warehouses. AD Ports Group reconfirmed its credit ratings of A+ by S&P and A+ by Fitch in February 2022.
AD Ports Group signed a record 3.2 sq.km of new land leases during the period, more than the annual land leases signed in either 2021 or 2020. New agreements included collaborations with Ghassan Aboud Group to develop the ‘Regional Food Hub - Abu Dhabi, in collaboration with Rungis,’ one of the region’s largest multi-category wholesale food trading and logistics hubs, and ‘The Regional Auto Hub - Abu Dhabi’ for automotive import, export and distribution. Container volumes grew by 23 percent year-on-year, with Ro-Ro and cruise passenger volumes showing a healthy rebound as they gradually recovered from the impact of the COVID-19 pandemic.
General cargo volumes decreased by 10 percent year-on-year when adjusted for one-off temporary projects, mainly due to change in the planned completion of certain external projects negatively affecting the 2022 volumes.
During Q1 2022, new maritime business initiatives such as feedering, transhipment, offshore logistics and supply as well as vessel chartering services grew by 167 percent year-on-year to contribute around AED 168 million of the Group’s total revenue. In January 2022, ADQ transferred ownership in two listed companies to AD Ports Group comprising a 22.32 percent stake in logistics firm Aramex PJSC and a 10 percent stake in UAE-based contractor National Marine Dredging Company PJSC (“NMDC”).
The combined market value of these stakes was approximately AED 2.5 billion at the time of transfer. In February 2022, AD Ports Group announced that it had acquired Divetech Marine Engineering Services, a UAE-based topside-subsea solutions provider. In the same month, the Group made its first equity placement through a pre-listing private placement that raised AED 4 billion for organic growth and acquisitions, with a subsequent listing on the Abu Dhabi Securities Exchange (ADX). Post ADX listing, the majority shareholder of the Group, ADQ, holds a 75.42 percent stake.
Established in 2006, AD Ports Group today serves as the region’s premier facilitator of logistics, industry, and trade, as well as a bridge linking Abu Dhabi to the world. Operating several clusters covering Ports, Economic Cities & Free Zones, Maritime, Logistics, and Digital, AD Ports Group’s portfolio comprises 10 ports and terminals, and more than 550 square kilometres of economic zones within KIZAD and ZonesCorp, the largest integrated trade, logistics, and industrial business grouping in the Middle East.