With strong performances across all its businesses and on the back of its latest acquisitions, the Abu Dhabi-based AD Ports Group revenue grew 73 percent year-on-year to AED1,817 million ($500 million) in the first quarter of 2023.
In a regulatory filing with Abu Dhabi Securities Exchange (ADX), AD Ports said the growth is driven by Maritime, Economic Cities & Free Zones, and Ports Clusters divisions, as well as its acquisitions of Transmar & TCI in Egypt and Divetech, ASCL, SAFEEN Subsea, and Al Eskan Al Jamae (EAJ) in Abu Dhabi.
Total net profit jumped 18 percent to AED363 million ($98.8 million). EBITDA increased 33 percent YoY to AED699 million ($190.3 million), implying an EBITDA margin of 38.5 percent for the quarter, which is in line with the short-term guidance of 35-40 percent communicated to the market.
Captain Mohamed Juma Al Shamisi, Managing Director and Group CEO, said the five-year CapEx plan (2023-27) of AED15 billion ($4.1 billion) will further boost growth for the company.
“I am thrilled to announce that our successful momentum from 2022 has carried through the first quarter of 2023, with strong financial and operational results. Our investment in organic growth is bearing fruit, and the strategic M&A activity has provided a further boost,” said Al Shamisi.
“The Group’s performance across its five clusters demonstrates our strong business resilience with over 70 percent of Q1 2023 revenue being long-term, sticky and recurring business.
“As we press ahead with our 5-year CapEx plan, and further expand our capabilities and market presence, we expect our growth trajectory to continue, especially since the macro outlook for the UAE and the region remains positive.”
During the quarter, the company continued with its CapEx programme to diversify its income, spending AED1.02 billion ($280 million). The heavy and planned CapEx program continued to weigh on free cash flows, resulting in a negative free cash flow of AED544 million ($148.1 million).
A combination of capacity increases, expanded service offerings and increased activity in new business segments helped the Maritime Cluster report triple-digit revenue growth of 259 percent YoY to AED915 million ($249 million). New acquisitions accounted for 30 percent of total Maritime Cluster revenue.
The Economic Cities & Free Zones Cluster reported top-line growth of 13 percent YoY to AED 429 million ($116.8 million), driven by previously signed leases, higher utilities revenues, and the merger with EAJ, whose contribution was around AED73 million ($19.8 million). The Cluster leased an additional 1.4 sqkm of land during the quarter, on track to achieve the 3.5-4.0 sqkm annual guidance.
The Ports Cluster reported revenue growth of 24 percent to AED 314 million ($85.5 million). Container volumes grew 18 percent with gradual recovery from COVID-19 and supply chain disruptions and container utilisation rates was higher (51% in Q1 2023 vs. 43% in Q1 2022) as partner shipping lines are gradually shifting their regional volumes to Khalifa Port. The Ports Cluster also benefited from a 361 percent growth in cruise passengers.
The Logistics Cluster contributed AED139 million, while the Digital Cluster revenue stood at AED101 million.
The Group is focusing on completing the previously announced 100 percent acquisition of Noatum, a logistics services provider with a presence in 26 countries across five continents, and 80 percent equity stake in Dubai-based container shipping company, Global Feeder Shipping (GFS).
These acquisitions will turn the company into the largest pure feeder operator in the region and the third largest globally by container capacity, which will be close to 100,000 TEUs.
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