Abu Dhabi’s AD Ports Group said Tuesday its second-quarter revenue increased 66% year-on-year to $572 million (AED 2.1 billion), driven by growth in volumes in key sectors, business diversification, and expansion both organically and through mergers and acquisitions.
On a like-for-like basis, the company posted a 44% year-on-year growth in revenues, excluding the effect of M&A activity. The key growth drivers included maritime (208%), digital (26%), and ports clusters (22%), the company said in a statement.
During the quarter, earnings before interest, taxes, depreciation, and amortization (EBITDA) soared 29% year-on-year to $187 million (AED 686 million), driven by acquisitions and growth in maritime, digital, and port clusters.
Total net profit for the quarter rose by 3% year-on-year to $84 million (AED 310 million) as its growth in earnings before interest, taxes, depreciation and amortization (EBITDA) was diluted by the increase in depreciation and amortization charges, as well as finance costs associated with the deployment of new assets with deferred revenue effect.
The Abu Dhabi ports operator said net operating cash flows continued to improve, reaching $138.3 million (AED 508 million) during the quarter, while capital expenditures totaled $490 million ((AED 1.8 billion).
The company’s maritime cluster posted a massive 208% revenue growth year-on-year to $330 million (AED 1.2 billion), primarily driven by the feedering (container and bulk) and offshore logistics and services business segments.
The economic cities & free zones cluster saw a 10% drop to $120.1 million (AED 441 million), mainly due to temporary lower utilization of Razeen staff accommodation as it ceased to be used as a COVID-19 isolation and quarantine facility.
The company's ports cluster recorded a 22% increase in second-quarter revenue, with container volumes growing 10% year-on-year to 1.21 million twenty-foot equivalent units (TEUs).
The logistics cluster contributed $35 million (AED 127 million) to the group’s quarterly revenues, representing a 3% year-on-year increase. Similarly, the digital cluster posted a 26% rise to $32 million (AED 117 million) in the quarter.
“With a remarkable 66% year-on-year revenue growth to AED 2.1 billion ($570 million), 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,” Mohamed Juma Al Shamisi, AD Ports Group managing director and group CEO, said in the statement.
In June, AD Ports Group signed a 50-year concession deal with Pakistan’s Karachi Port Trust to form a UAE-based joint venture to develop and manage a new container terminal in Karachi.
In May, AD Ports announced plans to buy five bulk carriers and three crude oil tankers, together costing $260 million (AED 955 million), to support its commercial shipping capacity.
In March, the group formed a joint venture, ADL-Ulanish, with Uzbekistan’s multi-sectoral holding firm SEG Enera Group to provide end-to-end global logistics services across the Central Asian country.
