Abu Dhabi Ports Group announced its 2021 financial results Tuesday. The logistics giant reported a 14 percent year-on-year growth in revenue to AED3.9 billion ($1.06bn), up from AED3.4 billion in 2020.
The firm said that its revenue growth was driven by volume growth, business diversification and new partnerships, UAE state-news agency WAM reported.
Net profit also increased to AED845mn up from AED397mn in 2020.
“These excellent results demonstrate that AD Ports Group has consolidated our leadership position when global trade and supply chains have experienced many challenges. Buoyed by our culture of innovation and our key strategic partnerships with global companies, we continue to deliver robust results and maintain our positive momentum,” Falah Mohammed Al Ahbabi, Chairman of AD Ports Group, said in a statement carried by WAM.
As of the end of 2021, AD Ports total assets stood at AED28.5bn, with equity at AED10.7bn. These numbers have grown since then, however, with the firm taking a 22.32 percent ownership stake in logistics firm Aramex and a 10 percent stake in UAE-based contractor National Marine Dredging Company (NMDC) in January 2022, from AD Ports majority shareholder ADQ.
“AD Ports Group delivered strong growth in 2021, driven by excellent performance across our business. Our Ports and Economic Cities continue to deliver excellent returns, while the expansion of our logistics services and growth in shipping also made a significant contribution,” Captain Mohamed Juma Al Shamsi, Group CEO, AD Ports Group, said in the statement.
“As we continue to build the knowledge and expertise required to take our business to the next level and utilise the AED4 billion in cash proceeds from the pre-listing issuance this month, we believe that the Group is well-positioned to accelerate its local and international expansion plans in 2022 and beyond with transformational impact across a broad range of industries,” he added.
Martin Aarup, Group Chief Financial Officer, AD Ports Group, said, “At the core of these results is the stability of our long-term contract business and our prudent investment strategy. AD Ports Group benefits from our well-balanced capital structure, investment-grade credit ratings, and stable long-term cash flows. This was evidenced by 14 percent revenue growth compared to 2020.”
Abu Dhabi Ports’ shares surge on ADX
AD Ports Group is rated A+ by S&P and A+ by Fitch.
On Monday, AD Ports announced the listing of its shares on the main market of the Abu Dhabi Securities Exchange (ADX), with trading beginning on Tuesday under the ticker ADPORTS. The AED4 billion of proceeds will be used to fund the company’s organic and inorganic growth plans, allowing it to accelerate its local and international expansion plans, a statement said.
AD Ports shares rose 15 percent on its debut, climbing to AED3.69, up from the offering price of AED3.20.
“We are pleased to see that our continued efforts to drive the growth of trade and industry across the UAE and beyond have achieved another key milestone with the official start of trading of AD Ports Group’s shares on the Abu Dhabi Securities Exchange,” Captain Mohamed said in a statement after the listing.
“And now, as a publicly listed company, we welcome new shareholders in joining us on our remarkable journey to develop the maritime and logistics industries across the region and globally,” he added.
Saeed Hamad Al Dhaheri, Managing Director and Chief Executive Officer, ADX, said: “We are pleased to welcome Abu Dhabi Ports Group on the Abu Dhabi Securities Exchange, the second listing of 2022. The listing of AD Ports on ADX follows a robust pipeline of listings and new products that we introduced in 2021. As part of our ‘ADX One’ we will continue to encourage the listings pipeline to enhance our dynamic capital market.”
ADQ, an Abu Dhabi-based investment and holding company with a broad portfolio of major enterprises, remains a majority shareholder with a 75.44 percent stake in the listed entity. ADQ sold 1.25 billion shares in the listing.
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