Abu Dhabi, UAE – AD Ports Group’s revenue grew 53 percent Year on Year to AED1,466 million ($399 million) in the third quarter of 2022 driven by strong growth in its Maritime Cluster and a robust performance of its Economic Cities & Free Zones (EC&FZ) Cluster.
Ports Cluster revenue grew 18 percent YoY on a like-for-like basis when adjusted for the positive effect of a one-off sand supply contract in 2021.
EBITDA increased 52 percent YoY to AED594 million ($162 million) in Q3 2022, implying an EBITDA margin of 40.5 percent in Q3 2022 and 43.9 percent for first nine months (9M) of 2022. The Group’s EBITDA performance continues to be supported by higher operating leverage in the Ports and EC&FZ Clusters going forward.
Net profit soared 77 percent YoY to reach AED334 million ($91 million) in Q3 2022 and over 58 percent YoY growth to AED941 million ($256 million) for 9M 2022.
Earnings per share increased 27 percent YoY to 0.19 for 9M 2022.
AD Ports Group CapEx investment rose to AED1.6 billion ($0.43 billion) in Q3 2022 and AED4.2 billion ($1.14 billion) in 9M 2022.
Operating Cash Flow amounted to AED1.3 billion for 9M 2022, implying a cash conversion of 76 percent while Free Cash Flow remained negative at AED-2.6 billion due to the large ongoing revenue generating growth CapEx investments.
Operationally, Ports Cluster container volumes grew 31 percent YoY in Q3 2022 (+28 percent YoY for 9M 2022), driven by increased capacity after the expansion of ADT and CSP Abu Dhabi Terminals in 2021.
One of the key highlights of the period was the announcement of the acquisition of an 80 percent equity stake in Dubai-based Global Feeder Shipping (GFS), a global container shipping company, for AED2.9 billion (US$800 million), implying a 100 percent Enterprise Value of AED3.7 billion (US$1.0 billion).
GFS is the third largest feeder shipping business globally, with operated capacity of 72,500 TEUs, a total of 26 vessels, and 9,000 owned and 31,000 operated containers across its feeder and NVOCC businesses. It operates a comprehensive service network of 20 services across the GCC, Red Sea, Indian Subcontinent and Southeast Asia.
The acquisition, which is the company’s largest by AD Ports Group to date, is set to position AD Ports Group as the largest pure feeder operator in the region and the third largest globally by container capacity, which will be close to 100,000 TEUs. GFS provides a complementary asset base and portfolio of services that will boost AD Ports Group’s regional and global footprint.
The company expects the GFS acquisition to be c.60 percent EPS accretive on a full-year basis in 2023.
In September, AD Ports Group also completed the acquisition of a 70 percent stake in International Associated Cargo Carrier (IACC) in Egypt, which fully owns Transmar and TCI, for an enterprise value of AED514 million (US$140 million).
“These remarkable results demonstrate the effectiveness and impact of our ambitious growth strategy, as we seek new opportunities even in challenging global market conditions,” Captain Mohamed Juma Al Shamisi, Managing Director and Group CEO, AD Ports Group, said.. “As ever, we are grateful to our wise leadership for their steadfast support for our initiatives at home in the UAE and around the world.”