AD Ports Group Reports Record Net Profit for Q1 2022
AD Ports Group has announced its financial results for the quarter ended 31 March 2022.
The Group reported revenue growth of 15% year-on-year to $285 million for Q1 2022, compared with $245 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% year-on-year to $143 million (Q1 2021: $107 million).
Adjusted EBITDA benefitted from a one-off gain of $20 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%.
Net profit was up 41% year-on-year to $83 million. When adjusted for the $20 million one-off gain, the Group’s revenue, adjusted EBITDA, and net profit results grew by 15%, 15%, and 7% year-on-year respectively.
Total assets and total equity reached $9.25 billion and $4.83 billion, respectively, at the end of Q1 2022.
Consolidated capital expenditure during the period was $263 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, Managing Director and 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% 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% 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% year-on-year to contribute around $46 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% stake in logistics firm Aramex PJSC and a 10% stake in UAE-based contractor National Marine Dredging Company PJSC (“NMDC”).
The combined market value of these stakes was approximately $680 million 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 that raised $1.08 billion for organic growth and acquisitions, with a subsequent listing on the Abu Dhabi Securities Exchange (ADX).
Post ADX listing, the majority shareholder of the Group, ADQ, holds a 75.42 % stake.