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ABU DHABI, May 15 / Today, the Abu Dhabi Ports Group announced its financial and operating results for the first quarter of 2023, maintaining the momentum of its strong performance during 2022.
The group achieved revenue growth of 73% compared to the same period last year, to reach 1.81 billion dirhams in the first quarter of 2023, driven by the strong performance of the maritime sector, the economic cities and free zones sector, and the ports sector, and benefiting from acquisitions during 2022 and in the first quarter. from 2023, which included Divtec, Alligator Shipping, Seven Offshore Operations, Transmar and TCI, and the Community Housing Company. EBITDA increased by 33% compared to the same period last year, to reach 699 million dirhams in the first quarter of 2023, driven by the performance of the maritime sector, the ports sector and acquisition deals, which was reflected in achieving a profit margin before deducting interest, tax, depreciation and amortization. It reached 38.5% in the first quarter of 2023, in line with the group’s drive to achieve a profit margin of 35-40% in the short term.
Total net profits increased by 18% compared to the same period last year, reaching AED 363 million in the first quarter of 2023. The maritime sector recorded a 259% growth in revenues compared to the same period last year, reaching AED 915 million in the first quarter. The first of 2023, driven by increasing its capabilities, providing broader service offerings and increasing its activities in new business sectors. The growth resulting from new acquisitions, which included Divtec, Alligator Shipping, Seven Offshore Operations, and Transmar, contributed 30% of the sector’s total revenues during the period.
This growth in the marine sector is mainly due to the marine business, regional “container and bulk” freight operations, and marine services.
The economic cities and free zones sector achieved a growth in its revenues by 13% compared to the same period last year, to reach 429 million dirhams in the first quarter of 2023, benefiting from previously signed land lease contracts, high revenues from public utility services, and the merger with the company. Collective housing, whose contribution to the revenues amounted to about 73 million dirhams.
The Economic Cities and Free Zones sector also leased additional lands of 1.4 square kilometers during the first quarter of 2023, to be on the right track towards achieving its annual plan to reach an area of 3.5-4.0 square kilometers, in addition to achieving an increase in warehouse rentals by 46% compared to the same period. period last year.
The ports sector recorded a 24% growth in revenues compared to the same period last year, to reach AED 314 million in the first quarter of 2023. The sector also achieved a growth in the volume of container handling by 18% compared to the same period last year, benefiting from a gradual recovery to the supply chain from the COVID-19 pandemic, and container utilization rates increased by 51% in the first quarter of 2023 compared to 43% in the first quarter of 2022, as a result of partner shipping lines gradually shifting their regional container handling operations to Khalifa Port, in line with its contractual obligations.
The ports sector also achieved a growth of 32% compared to the same period last year in the volume of ro-ro vessel handling, by 361% in the number of cruise ship passengers, and by 40% in the volume of general cargo handling.
The logistics sector contributed to the group’s revenues of 139 million dirhams in the first quarter of 2023, a decrease of 3% year-on-year, as its performance was affected by the closure of a factory for one of the strategic dealers, and the end of the activities of transporting Covid-19 vaccines.
The digital sector also contributed to achieving relatively stable revenues for the group, amounting to 101 million dirhams during the first quarter of 2023, as its performance was affected by the decline in internal demand for information technology services.
The group spent 1.02 billion dirhams in the first quarter of 2023 as part of continuing to implement its ambitious capital spending program in order to diversify the company’s sources of income according to the plan.
On the balance sheet front, Abu Dhabi Ports Group maintained its healthy financial position and solvency with a net debt to EBITDA ratio of 2.1 times at the end of the first quarter of the year, and limited short-term debt service commitments.
With regard to cash flows, the group achieved net operating cash flows of 335 million dirhams in the first quarter of 2023, a significant increase compared to the same period last year.
The capital spending program continued in the first period of its “5-year” cycle to affect the free cash flows according to the plan, which led to a negative financial flow of 544 million dirhams.
The most notable achievement since the beginning of 2023 was the announcement of the acquisition of 100% of the shares of “TTech”, the developer of border control and customs systems solutions, in addition to the completion of the merger deal with the collective housing company.
The efforts of the Abu Dhabi Ports Group are now focused on completing the deal to acquire 100% of the shares of Noatum, the logistics services provider that is present in 26 countries across five continents, as well as 80% of the shares of Global Feeder Shipping (GFS), a company International Container Shipping Company headquartered in Dubai.
These acquisitions will expand the group’s global reach, increase its global business in the field of logistics and freight services, and strengthen its position as the largest single provider of regional container freight services in the region, and the third in the world in terms of capacity, which is approximately 100,000 TEU.
Abu Dhabi Ports Group expects to complete the acquisition
