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Abu Dhabi Ports Group, the operator of industrial cities and free zones in the emirate, reported a 21 per cent jump in third-quarter net profit driven by robust business activity and recent acquisitions.
Net profit attributable to the owners of the company for the three-month period to the end of September rose to Dh381 million ($103.7 million), the company said in a filing to the Abu Dhabi Securities Exchange, where its shares are traded.
Revenue during the July-September period surged almost 189 per cent to Dh4.23 billion, driven by its logistics, maritime and shipping, and ports business clusters.
Earnings before interest, tax and amortisation increased by 28 per cent to Dh759 million, largely supported by the acquisition of Noatum and Karachi Gateway Terminal, the company said.
The third-quarter growth is underpinned by the company’s merger and acquisition activities and its strong relationships with diverse local economies, beyond traditional terminal operations, said Mohamed Al Shamisi, managing director and group chief executive of AD Ports.
“The robust top-line growth not only reflects our efforts to develop new trade routes, strengthen service offerings to our key trading partners and invest in our key customers in global supply chains, but also stands as a clear indicator of our effective diversification strategy and operational excellence,” he added.
Established in 2006, AD Ports, which has a portfolio of more than 30 ports and terminals, has been expanding its operations globally.
In recent quarters, the group has acquired several assets and signed port management concession agreements across several markets in a bid to expand its global reach.
In July, it acquired Spanish integrated logistics platform Noatum after receiving final approval for the deal from Spanish authorities. Noatum, with an enterprise value of Dh2.5 billion, has a presence in 26 global markets.
Last month, Noatum announced the acquisition of Sese Auto Logistics and the transaction is expected to be completed by the first quarter of next year.
Sese is engaged in road and rail transport logistics of light and heavy vehicles, operating from Spain, Germany, Poland, the Czech Republic and Hungary. It has a fleet of more than 200 lorries that cover more than 30 million kilometres annually across Europe.
In June, AD Ports signed a 50-year concession agreement with Pakistan’s Karachi Port Trust. The deal includes an investment of $220 million to develop a new concession at Karachi port aimed at boosting its growth over the next 10 years.
The company on Tuesday said its maritime and shipping cluster reported a revenue growth of 264 per cent yearly to Dh2.44 billion. While the economic cities and free zones cluster reported a 20 per cent growth to Dh443 million.
Its logistics and digital clusters reported a revenue of Dh852 million and Dh100 million, respectively.
Last week, AD Ports acquired 10 offshore vessels for about Dh735 million, boosting its offshore and subsea capabilities in the Middle East and South-East Asia by about 20 per cent.
“These strategic alignments, coupled with our prudent financial management, position us exceptionally well for sustained success and profitability in the evolving economic landscape,” said Martin Aarup, the company’s group chief financial officer.
The company’s capital expenditure reached Dh800 million in the September quarter, putting the total year-to-date outlay at Dh3.65 billion. AD Ports said it is in line with the company’s front-loaded Dh15 billion capex programme between 2023 and 2027.
Updated: November 14, 2023, 6:55 PM
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