Abu Dhabi, UAE — AD Ports Group posted total net profit of AED310 million ($84 million) in the second quarter of 2023, a 3 per cent year-on-year increase.
The Group said in a statement that the increase was low as EBITDA growth was diluted by the increase in depreciation and amortization charges, as well as finance costs associated with deployment of new assets with deferred revenue effect.
The Group posted 66 per cent year-on-year revenue growth to AED2.1 billion in the second quarter of 2023, driven by volume growth in key sectors, business diversification as well as local, regional, and international expansion both organically and through mergers and acquisitions.
Revenue growth reached 44 per cent year-on-year on a like-for-like basis (LFL), excluding effect from mergers and acquisitions.
Maritime, Digital, and Ports Clusters were the key growth drivers with 208 per cent, 26 per cent, and 22 per cent year-on-year, respectively.
AD Ports Group Q2 2023 EBITDA rose by 29 per cent year-on-year to AED686 million, mainly driven by maritime, digital, and ports clusters as well as acquisitions (+13 per cent year-on-year on a LFL basis).
The Maritime Cluster reported a revenue growth of 208 per cent year-on-year to AED1.20 billion, primarily driven by the feedering (container and bulk) and offshore logistics and services business segments (+161 per cent year-on-year on LFL basis).
The Economic Cities & Free Zones Cluster (EC&FZ Cluster) reported a 10 per cent year-on-year decline to AED441 million, mainly due to temporary lower utilization of Razeen staff accommodation as it ceased to be used as COVID-19 isolation and quarantine facilities.
The Ports Cluster reported Q2 2023 revenue growth of 22 per cent year-on-year (+15 per cent year-on-year on a LFL basis), with container volumes growing 10 per cent year-on-year to 1.21 million twenty-foot equivalent units (TEUs).
The Logistics Cluster contributed AED127 million to AD Ports Group’s revenue in Q2 2023, representing a 3 per cent year-on-year increase as 8 per cent year-on-year growth in polymer volumes was partly offset by cessation of COVID-19 vaccine business.
Captain Mohamed Juma Al Shamisi, Managing Director and Group CEO of AD Ports Group, said, “With a remarkable 66 per cent year-on-year revenue growth to AED2.1 billion, we are successfully executing our diversification strategy and leveraging synergies from our recent acquisitions, paving the way for continued growth and value creation for our stakeholders, driven by the support of our wise leadership.”