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AD Ports doubles first quarter revenue

AD Ports AD Ports group building
AD Ports Group has more than doubled its first quarter earnings compared to Q1 2023, with a 22% uplift on a like-for-like basis.

The expanding group recorded revenues of AED 3.89bn ($1.06bn) in Q1 2024, up from AED1.82bn in the same period last year. Q4 2023 revenues were AED3.57bn.

In Q1 2024 alone, the group completed acquisitions 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. The completion of its acquisition of Noatum in June 2023 further increased the merger and acquisition impact on its results compared to Q1 2023.

Total net profit was up 10% on-year to AED400m, while net debt rose by AED8.4bn to AED14.3bn.

Reflecting on its operational performance, AD Ports said revenues at its ports cluster grew by 80% on-year to AED565m, with ro-ro handling up 271%, general cargo handling up 115% and a 55% increase in port leases. The figures were bolstered by the acquisitions of Noatum and KGTML, with overall ports cluster revenue up 17% on-year on a like-for-like basis. 

The group’s maritime & shipping cluster was the largest contributor to group revenue and EBITDA, with revenues rising by 92% on-year to AED1.76bn in Q1 2024. Adjusted for mergers and acquisitions, cluster’s revenue growth was 27%.

AD Ports said that Red Sea disruptions had a positive impact on the cluster’s shipping business as expected, with around 29% of the feeder container volumes transported in Q1 2024 related to the seven Red Sea services it 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 company said in a statement.

The acquisition of Noatum brought a near sevenfold increase in revenue for the logistics cluster, further supported by a tw-month contribution from Sesé Auto Logistics and the start of operations of at new Uzbekistan logistic JV ADL-Ulanish. Logistics cluster revenues weer AED1.08bn for the quarter.

Captain Mohamed Juma Al Shamisi, Managing Director and Group CEO, AD Ports Group, said: “We are pleased to have continued the momentum of a successful 2023 through the first quarter of 2024, delivering strong financial and operational results more than doubling our year-on-year revenues and recording healthy profits.

“We are confident that with assets in Pakistan, Spain, Jordan, Egypt, Congo Brazzaville, Angola, Uzbekistan, Kazakhstan, Georgia, and the UAE, AD Ports Group is well-placed to benefit in today’s challenging markets.”