AD Ports Group today announced its financial results for the quarter ended 31 March 2022.
The Group reported revenue growth of 15 percent year-on-year to AED 1,047 million for Q1 2022, compared with AED 910 million in 2021, with growth across most clusters and a strong contribution from new partnerships and business lines.
Adjusted EBITDA for the period increased by 34 percent year-on-year to AED 524 million (Q1 2021: AED 393 million). Adjusted EBITDA benefitted from a one-off gain of AED 73 million from the sale of a purpose-built warehouse to a related strategic customer as part of concluding a long-term contract with said customer, which will positively impact Ports, Logistics and Economic Cities & Free Zones clusters going forward. The adjusted EBITDA margin for the period was higher year-on-year by 7 percentage points at 50 percent.
Net profit was up 41 percent year-on-year to AED 306 million (Q1 2021: AED 218 million). When adjusted for the AED 73 million one-off gain, the Group’s revenue, adjusted EBITDA, and net profit results grew by 15 percent, 15 percent, and 7 percent year-on-year respectively.
Total assets and total equity reached AED 34.085 billion and AED 17.770 billion, respectively, at the end of Q1 2022. Consolidated capital expenditure during the period was AED 967 million, with investments primarily in the expansion of the vessel fleet as well as enhancements to Khalifa Port South Quay, Khalifa Logistics Port, and new build warehouses.
AD Ports Group reconfirmed its credit ratings of A+ by S&P and A+ by Fitch in February 2022.
Captain Mohamed Juma Al Shamsi, Group CEO, AD Ports Group, said: “We started 2022 with a strong performance that has delivered healthy returns for our stakeholders. The Group’s core businesses are rebounding from the supply chain disruptions of the recent period, while our dynamic new ventures are yielding positive results. Our integrated business model, built upon a firm foundation of long-term contracts and enhanced service offerings, continues to drive growth. We are resolute in our commitment to contribute to the UAE’s economic development.”
AD Ports Group signed a record 3.2 sq.km of new land leases during the period, more than the annual land leases signed in either 2021 or 2020. New agreements included collaborations with Ghassan Aboud Group to develop the ‘Regional Food Hub - Abu Dhabi, in collaboration with Rungis,’ one of the region’s largest multi-category wholesale food trading and logistics hubs, and ‘The Regional Auto Hub - Abu Dhabi’ for automotive import, export and distribution.
Container volumes grew by 23 percent year-on-year, with Ro-Ro and cruise passenger volumes showing a healthy rebound as they gradually recovered from the impact of the COVID-19 pandemic. General cargo volumes decreased by 10 percent year-on-year when adjusted for one-off temporary projects, mainly due to change in the planned completion of certain external projects negatively affecting the 2022 volumes.
During Q1 2022, new maritime business initiatives such as feedering, transhipment, offshore logistics and supply as well as vessel chartering services grew by 167 percent year-on-year to contribute around AED 168 million of the Group’s total revenue.
In January 2022, ADQ transferred ownership in two listed companies to AD Ports Group comprising a 22.32 percent stake in logistics firm Aramex PJSC (“Aramex”) and a 10 percent stake in UAE-based contractor National Marine Dredging Company PJSC (“NMDC”). The combined market value of these stakes was approximately AED 2.5 billion at the time of transfer.
In February 2022, AD Ports Group announced that it had acquired Divetech Marine Engineering Services, a UAE-based topside-subsea solutions provider. In the same month, the Group made its first equity placement through a pre-listing private placement on the Abu Dhabi Securities Exchange (ADX) raising AED 4 billion for organic growth and acquisitions. Post ADX listing, the majority shareholder of the Group, ADQ, holds a 75.42 percent stake.
Martin Aarup, Group Chief Financial Officer, AD Ports Group, said: “AD Ports Group has come through the COVID-19 pandemic as a stronger, more dynamic organisation delivering a diverse range of services. Although the global economy is still going through a turbulent period, based on our resilient business model, the Group expects to deliver full year 2022 revenue in the range of AED 4.4-4.6 billion, adjusted EBITDA in the range of AED 1.875-1.975 billion and net profit in the range of AED 1.050-1.100 billion. Capital expenditure for 2022 is expected to be in the range of AED 4.0-4.5 billion.”