• 2024 May 14 13:55

    AD Ports Group announces Q1 results

    AD Ports Group, a leading facilitator of global trade, logistics, and industry, today announced its financial results for the 3 months ending 31st March 2024, reporting strong operational and financial performance, with revenue more than doubling Year-on-Year (YoY) to AED 3.89 billion, +22% YoY on a Like-For-Like (LFL) basis after adjusting for the effect of mergers and acquisitions (M&A). In Q1 2024, AD Ports Group completed the acquisition of APM Terminals Castellon in Spain, Sesé Auto Logistics in Europe, Karachi Gateway Terminal Multipurpose Limited (KGTML) in Pakistan, Dubai Technologies in the UAE, and GFS in the UAE.

    Both Revenue and EBITDA growth were driven by the Maritime & Shipping, Ports, Logistics, and Digital Clusters, as well as M&A effect, particularly Noatum’s acquisition, which was completed on 30th June 2023, and GFS’ acquisition, which was completed on 31st January 2024.

    The Group EBITDA margin of 26.7% is well within the 25-30% range guidance confirmed at the end of 2023 for the medium term.

    Despite higher depreciation and amortisation charges (+64% YoY) as well as finance costs (+70% YoY) in Q1 2024, and M&A transaction costs, Profit Before Tax and Minorities grew by an impressive 27% YoY to AED 462 million, including AED 62 million dividend income from the Group’s 10% investment in National Marine Dredging Company (NMDC).

    The introduction of corporate income tax in the UAE in 2024 and the higher share of profits coming from foreign operations (also taxable) resulted in Total Net Profit growth of 10% YoY to AED 400 million, and a Net Profit after Minorities of AED 314 million.

    Revenues and profits associated with recent organic and inorganic investments are yet to be fully reflected in the Group’s financial performance going forward. Furthermore, normalisation of interest rates will also help narrow the gap between EBITDA performance and bottom-line growth.

    Operationally, the Ports Cluster saw container throughput grow to 1.37 million Twenty-foot Equivalent Units (TEUs) in Q1 2024, +26% YoY, driven by higher overall utilisation of 55% compared to 51% in Q1 2023 and 52% in Q4 2023. At Khalifa Port, which accounted for 88% of total throughput, utilisation at the two operational container terminals increased sharply to 62%, up from 55% in Q1 2023 and 56% in Q4 2023. On an LFL basis (adjusting for KGTL and Noatum), container volumes grew 14% YoY.

    General cargo volumes rose by 36% YoY to reach 13.4 million tonnes in Q1 2024, compared with 9.8 million tonnes in Q1 2023, largely driven by the consolidation of Noatum and KGTML.

    Ro-Ro volumes increased by more than fourfold YoY to 307,000 vehicles in Q1 2024, including the consolidation of Noatum’s volumes, while cruise passenger volumes declined 8% YoY during the quarter due to the impact of the Red Sea disruptions on the Aqaba Cruise Terminal operations (+2% YoY in cruise passenger volumes in the UAE).

    In the Economic Cities & Free Zones (EC&FZ) Cluster, 1.4 sq km of additional new leases (net) were signed in Q1 2024. Occupancy in KEZAD Communities continued to improve, reaching 61% in the first quarter of 2024, up from 47% in Q1 2023 and 60% at the end of 2023. Demand for gas remained steady (-1% YoY), and warehouse occupancy improved further to 88%, up from 71% in Q1 2023 and 87% in Q4 2023.

    In the Maritime & Shipping Cluster, all operational indicators recorded strong growth in Q1 2024. The total vessel fleet reached 263, up from 184 in Q1 2023, adding capacity across all business segments - Marine Services, Container, Bulk, Ro-Ro, and Offshore & Subsea.

    With the consolidation of GFS effective 1st February 2024, AD Ports Group has become the world’s third largest feeder container shipping company by capacity, with a container vessel fleet of 49 and a total vessel fleet capacity of 139,000 TEUs. Maritime connectivity, a key element in the integrated supply chain ecosystem that has been nurtured in Abu Dhabi over the past few years, has leapfrogged with the acquisition of GFS, significantly strengthening the UAE Capital’s hub-and-spoke model with 23 feeder services, connecting customers to 28 countries and 78 ports along key trade routes for Abu Dhabi.

    Container volumes increased more than four-fold YoY to 450,000 TEUs in Q1 2024; and marine services activities (vessel calls, towing services, pilot services) all experienced mid-single digit growth YoY.

    With its combined feeder container shipping operations, which include GFS, Safeen Feeders, and Transmar, AD Ports Group loaded one TEU every 14 seconds in Q1 2024.

    In the Logistics Cluster, polymer volumes increased 34% YoY in Q1 2024, while global ocean and air freight forwarding volumes increased 13% YoY and declined 3% YoY, respectively. Ocean freight forwarding volume good performance was driven by a mix of organic growth, especially in Turkey, new customer acquisition following the deployment of new solutions, and favourable market dynamics. As for air freight forwarding volumes, price discussions with some existing customers exerted pressure on volumes.

    In the Digital Cluster, Foreign Labour Services (FLS) transactions, external projects, and the start of security services (through Nishan Security Services) supported the operational performance of the cluster.

    The EC&FZ Cluster recorded revenue growth of 7% YoY to reach AED 461 million in Q1 2024, driven by warehouse leases and KEZAD Communities as utilisation rates in these two business segments continue to increase steadily.

    The cluster’s EBITDA amounted to AED 305 million for the quarter, translating into an EBITDA margin of 66%, compared to 68% in Q1 2023 and 63% adjusted for a one-off in Q4 2023.

    The Ports Cluster’s revenue grew by 80% YoY to AED 565 million in Q1 2024, fuelled by strong growth of 55%, 115%, and 271% YoY in port leases, general cargo handling, and Ro-Ro handling. This growth was bolstered by the contribution of Noatum and KGTML in the general cargo business and Noatum in the Ro-Ro business while the continued ramp-up of South Quay and KPL at Khalifa Port supported strong momentum in the port leasing business. Additional container revenues, including that from the container terminal in Pakistan-Karachi (KGTL) and Noatum’s container activities in Spain, have further boosted the cluster’s top-line performance since Q3 2023. Adjusting for the M&A effect, consisting of Noatum Terminals business in Spain (3-month contribution) and Pakistan’s KGTL (3-month contribution) and KGTML (2-month contribution), Ports Cluster revenue increased by 17% YoY in Q1 2024.

    The cluster’s EBITDA reached AED 249 million in Q1 2024, implying an EBITDA margin of 44%, down from 55% in Q1 2023 and 45% in Q4 2023 due to the change in business mix from international activities.

    In Q1 2024, the Maritime & Shipping Cluster sustained a strong top line growth momentum, with revenue soaring 92% YoY to AED 1.76 billion in Q1 2024, driven by Marine Services (+384% YoY), Shipping (+90% YoY), and Offshore & Subsea (+48% YoY). Adjusted for M&A effect, 2-month contribution from GFS and 3-month contribution from Noatum Maritime, the Cluster’s revenue growth reached 27% YoY.

    The Maritime & Shipping Cluster was the largest revenue and EBITDA contributor, accounting for 44% and 37% of the Group revenue and EBITDA, respectively. Additional investments were made in Offshore & Subsea capacity to continue to diversify the revenue mix and build a synergistic portfolio of assets less susceptible to fluctuating market dynamics.

    The cluster’s EBITDA amounted to AED 436 million, translating into an EBITDA margin of 25% vs. 32% in Q1 2023 and 23% adjusted for one-offs in Q4 2023.

    As expected, the Red Sea disruptions have had a positive impact on the cluster’s Shipping business, which represented 54% of the cluster’s total revenue in Q1 2024, up from 46% in 2023 given the 2-month contribution of GFS. About 29% of the feeder container volumes transported in Q1 2024 were related to the 7 Red Sea services operated during the quarter. Both demand and rates for shipping operations in the Red Sea have been trending higher and current conditions seem to be entrenched and are likely to persist in the coming quarters.

    The Logistics Cluster’s revenue jumped almost seven-fold YoY to AED 1.08 billion in Q1 2024, primarily driven by the consolidation of Noatum Logistics (3-month contribution) and Sesé Auto Logistics (2-month contribution), and the start of operations of ADL-Ulanish (1-month contribution), a new logistics JV in Uzbekistan. LFL revenue growth for the cluster reached 49% YoY, supported by the polymer business and additional organic revenues from ADL-Ulanish.

    The cluster’s EBITDA almost tripled YoY to AED 93 million in Q1 2024, implying an EBITDA margin of 9% vs. 23% in Q1 2023 and 6% adjusted for one-offs in Q4 2023.

    The Digital Cluster’s revenue grew by 50% YoY to AED 151 million in Q1 2024 (+38% YoY on a LFL basis, adjusting for the consolidation of TTEK (3-month contribution) and Dubai Technologies (1-month contribution). This growth was driven by higher revenue from Foreign Labour Service (FLS) transactions and external projects, and the start of security services (through Nishan Security Services).

    The cluster’s EBITDA amounted to AED 94 million in Q1 2024 (+60% YoY), resulting in an EBITDA margin of 62% vs. 58% in both Q1 2023 and Q4 2023.

    On the Balance Sheet front, total assets grew 34% YoY to AED 58.3 billion in Q1 2024, while total equity increased 12% YoY to AED 25.0 billion.

    Net debt to EBITDA ratio dropped to 3.4x in Q1 2024, from 4.4x at the end of 2023, on the back of the strong quarterly EBITDA performance, which better reflected, although not fully yet, recently completed M&A transactions. The Group’s lower leverage continues to support investment-grade credit ratings.

    The Group’s Capital Expenditure (CapEx) reached AED 1.27 billion in Q1 2024, in line with the Group’s front-loaded AED 12-15 billion organic capex guidance between 2024 and 2028.

    Cash Flow from Operations more than doubled to AED 781 million in Q1 2024 as a result of better operating performance and enhanced working capital, however the significant increase in Cash Used in Investing Activities (one-off impact from the completion of several M&A transactions combined with ongoing organic CapEx investments) led to a larger negative Free Cash Flow for the quarter.

2024 June 19

18:17 Wärtsilä propulsion solutions expected to deliver 5% fuel savings for International Seaways tankers
17:42 TGS market overview report: Strong expectations continue in offshore wind despite short-term downgrades
17:09 Vestas receives 577 MW order in Australia for second stage of the 1.3 GW Golden Plains wind project
16:37 Wintershall Dea makes discovery in Cuvette exploration well
16:07 Equinor expands renewables portfolio in Poland with a new solar plant
15:52 Shell signs agreement to acquire Pavilion Energy
15:19 LR releases its 3rd alternative fuels report concerning LPG as marine fuel
14:39 Greek-owned Liberian-flagged ship hit in Red Sea sinks
14:32 Samsung Heavy Industries unveils revolutionary K-PAW welding technology
13:51 DOF awards new Constructor Compact ROV systems contract to Kystdesign
13:47 Mitsubishi Shipbuilding receives orders for Japan's first methanol-fueled RORO cargo ships
13:28 Sirius Shipping to charter out its new tanker duo to Preem for transportation of renewable fuels, feedstock
12:39 Chartwell and Vard to advance new SOV design working with North Star
11:23 Wartsila launches world’s first large-scale 100% hydrogen-ready engine power plant
11:14 Industrial-scale floating green ammonia plant project enters next phase
10:06 ABP signs MOU with Marine Power Systems to advance floating offshore wind technology
09:44 Port of Antwerp Bruges: Deurganckdok oil spill clean-up completed

2024 June 18

18:13 Atlantic Towing and Svitzer modernise Halifax port fleet with new escort tugboats
17:38 Port of Long Beach sets $760 million annual budget
17:28 Unifeeder and MPC Container Ships announce a new collaboration to make joint investments into Energy Efficiency Technology
17:16 Port of Koper welcomes Astrid Maersk, the world’s second large green methanol-enabled vessel
16:43 Gasum plans a large-scale biogas plant in Sweden
16:15 GONDAN Shipbuilders secures 31-meters passenger catamaran contract from Líneas Romero
15:39 CMA CGM to strengthen its INDAMEX service connecting Indian Subcontinent with US East Coast
15:11 Maersk wins a heavy lift contract from Vestas
14:07 South Korea bolsters shipbuilding industry with $10.75 billion financial support
13:41 MOL joins SFC focused on decarbonizing international logistics
13:11 Fred. Olsen Cruise Lines joins the ISWAN
12:22 Carnival Corporation celebrates shore power launch at PortMiami after exceeding industry-leading milestone
11:45 Nel ASA set to become a fully dedicated electrolyser company
11:24 Temasek signs agreement to divest Pavilion Energy
11:13 IMO's NCSR agreeds pilot transfer arrangements and amendments to SOLAS regulation V/23
10:47 LR awards Quoceant an IECRE Feasibility Statement for the Q-Connect
10:31 DNV: Global grid infrastructure to double by 2050 to meet surging electricity demand
09:43 Tarntank orders tenth hybrid chemical tanker

2024 June 17

18:16 Philippine supply ship bumped Chinese ship
17:49 Survitec secures JMSDF submarine escape suit contract
17:36 First mega cruise ship built for short cruises delivered to Royal Caribbean
17:14 Petroleum chemical product carriers drive order performance of Korea shipbuilding industry
16:37 MPA: Joint oil spill clean-up operations advance to next phase
16:23 Greek shipowners start investing in large new ships to transport ammonia
15:42 BV awards AiP to Antwerp-based Seafar for its remote vessel operation technology
14:31 USACE continues maintenance dredging at Markland Locks
14:29 Green Marine UK partners with C-Power to advance autonomous offshore power systems
13:17 Van Oord releases statement concering collision Vox Maxima with bunker vessel
12:04 Green Marine and Ocean Kinetics form JV Partnership to decomission OpenHydro tidal turbine in Scotland
11:52 ClassNK releases 2nd Edition “FAQs on the FuelEU Maritime”
11:07 Allision of dredger Vox Maxima was caused by a sudden loss in engine and steering control, MPA investigation showed
10:28 Sweden-Belgium Green Shipping Corridor expands ambition for the world's first green ammonia shipping corridor and welcomes new partner
09:23 APM Terminals calls first movers to join Innovators Program to enhance visibility and reliability for customers
09:11 Georgia Ports Authority sees 22% container growth

2024 June 16

16:18 Diana Shipping Inc. announces time charter contract for m/v Myrsini with Cobelfret S.A.
15:16 MPA: Joint oil spill clean-up operations in Singapore continue
14:27 Watershed moment for AMSA’s future maintenance on aids to navigation
14:07 Mammoet awarded construction upgrade of Hawaii dry dock
13:54 CMA CGM announces update on its IEX 2 service
12:31 Jan De Nul order first plug-in hybrid dredging vessel
10:26 Solstad announces contract extension for its CSV duo by Subsea 7

2024 June 15

14:15 VARD hosts a christening ceremony for third VARD 8 02 design stern trawler
12:03 TECO 2030, BLOM Maritime and Samskip receive ENOVA grant to retrofit Samskip LNG Vessel with fuel cells and hydrogen fuel
10:06 The 3rd of 12 plug-in hybrid vessel joins Swedish shortsea operator's fleet
09:51 S&P Global: Guangdong province's market-based power subsidy supports gas demand growth

2024 June 14

18:09 Strategic R&D alliance formed to standardize materials for LH2 carriers
17:44 BSEE conducts first offshore wind turbine inspection
17:23 Aker Artic completes ice-going SOV concept for offshore wind farms
17:19 Orsted completes construction of combined wind and solar project in Texas
16:57 MPA: Oil spill clean-up in progress at Pasir Panjang Terminal
15:37 ADNOC awards $5.5 billion of contracts for Ruwais LNG plant
15:11 Allseas awarded Troll extension pipeline
14:26 Havila Shipping inks deals for its three PSVs with Equinor