Free Trade Zones

AD Ports Group Q2 net profit up 59%

AD Ports Group recorded a 35% increase in revenue to AED 1.2 billion ($335 million) thanks to the Maritime & Economic Cities and Free Zones (EC&FZ) clusters.

“The port cluster’s revenue performance in the second quarter of 2022 was hampered by an unfavorable base effect from the ad hoc sand supply contract which ran from March to October 2021. However, on a like-for-like basis, revenue from the port cluster grew by 20% year-on-year in Q22022,” said a statement announcing the results.

EBITDA increased by 41% year-on-year to reach AED532 million ($144 million) and EBITDA margin improved by nearly 200 basis points to 42.8%.

Net profit rose 59% to AED300 million ($81 million) despite higher depreciation charges and financial charges, the statement added.

“The momentum of our growth journey has accelerated throughout the first half of the year, and we expect to continue delivering our performance for the rest of the year,” said captain Mohamed Juma Al Shamisi, Group Managing Director and CEO, AD Ports Group. . “We are grateful to our wise leaders for their unwavering support of our efforts to drive economic growth, diversification and industrialization in the UAE. The core business of the group continued to rebound from the severe supply chain disruptions. sourcing last year, while our new ventures, enhanced service offering and strategy of diversifying into new synergistic ventures yielded positive results.

“In Q22022, we continued to invest heavily in order to generate future growth. In addition, we also benefited from the macroeconomic situation in the Gulf region, and in the United Arab Emirates in particular. Not only did oil prices strongly increased, which has accelerated the country’s economic growth, including the non-oil economy, but AD Ports Group is also well positioned to be one of the main beneficiaries of Abu Dhabi’s industrial strategy, which aims to more than double the size of its manufacturing sector to AED172 billion ($46 billion) by 2031.”

Ross Thompson, Group Strategy and Growth Director, AD Ports Group, added: “Global markets are still turbulent with an environment of high inflation, rising interest rates, geopolitical tensions as well as ramifications continuing effects of the Covid-19 pandemic, including supply chain disruptions and Global maritime container trade volumes declined by around 2.5% in the first half of 2022, with full-year forecasts expected to decline. end up at nearly 1% year-on-year growth. On the other hand, shipping rates remain at extraordinary levels and their outlook for the rest of the year remains positive with continued disruptions providing support despite trade headwinds.”

Consolidated capital expenditure during Q22022 reached AED1.6 billion ($432 million), with the top three beneficiaries, in quantum order, being the maritime cluster (ship fleet expansion), the port (Khalifa port expansion and Etihad Rail connectivity) and the economic sector. cluster cities and free zones (new warehouses, extension of the gas network and investments related to infrastructure to unlock additional land), adds the press release.