AD Ports Group Starts 2024 with Significant Financial and Operational Performance in Q1

Abu Dhabi, UAE – 14 May 2024: AD Ports Group (ADX: ADPORTS), a number one facilitator of world commerce, logistics, and business, at this time introduced its monetary outcomes for the three months ending thirty first March 2024, reporting robust operational and monetary efficiency, with income greater than doubling Year-on-Year (YoY) to AED 3.89 billion, +22% YoY on a Like-For-Like (LFL) foundation after adjusting for the impact of mergers and acquisitions (M&A). In Q1 2024, AD Ports Group accomplished the acquisition of APM Terminals Castellon in Spain, Sesé Auto Logistics in Europe, Karachi Gateway Terminal Multipurpose Limited (KGTML) in Pakistan, Dubai Technologies in the UAE, and GFS in the UAE.

Both Revenue and EBITDA progress had been pushed by the Maritime & Shipping, Ports, Logistics, and Digital Clusters, in addition to M&A impact, significantly Noatum’s acquisition, which was accomplished on thirtieth June 2023, and GFS’ acquisition, which was accomplished on thirty first January 2024.

The Group EBITDA margin of 26.7% is properly throughout the 25-30% vary steering confirmed on the finish of 2023 for the medium time period.

Despite larger depreciation and amortisation prices (+64% YoY) in addition to finance prices (+70% YoY) in Q1 2024, and M&A transaction prices, Profit Before Tax and Minorities grew by a powerful 27% YoY to AED 462 million, together with AED 62 million dividend revenue from the Group’s 10% funding in National Marine Dredging Company (NMDC).

The introduction of company revenue tax in the UAE in 2024 and the upper share of income coming from international operations (additionally taxable) resulted in Total Net Profit progress of 10% YoY to AED 400 million, and a Net Profit after Minorities of AED 314 million.

Revenues and income related with current natural and inorganic investments are but to be totally mirrored in the Group’s monetary efficiency going ahead. Furthermore, normalisation of rates of interest may even assist slender the hole between EBITDA efficiency and bottom-line progress.

Captain Mohamed Juma Al Shamisi, Managing Director and Group CEO, AD Ports Group, mentioned: “We are happy to have continued the momentum of a profitable 2023 by the primary quarter of 2024, delivering robust monetary and operational outcomes greater than doubling our year-on-year revenues and recording wholesome income. This efficiency highlights our unwavering dedication to excellence and progress as a high participant in international commerce and logistics. Guided by the imaginative and prescient of our sensible management, the Group is properly structured and has constructed stable foundations to help the continued diversification of its port-centric logistics international footprint in gentle of the continued international geopolitical disruptions and polarisation. We are assured that with property in Pakistan, Spain, Jordan, Egypt, Congo Brazzaville, Angola, Uzbekistan, Kazakhstan, Georgia, and the UAE, AD Ports Group is well-placed to learn in at this time’s difficult markets.”

Operational Performance

Operationally, the Ports Cluster noticed container throughput develop to 1.37 million Twenty-foot Equivalent Units (TEUs) in Q1 2024, +26% YoY, pushed by larger total utilisation of 55% in comparison with 51% in Q1 2023 and 52% in This fall 2023. At Khalifa Port, which accounted for 88% of whole throughput, utilisation on the two operational container terminals elevated sharply to 62%, up from 55% in Q1 2023 and 56% in This fall 2023. On an LFL foundation (adjusting for KGTL and Noatum), container volumes grew 14% YoY.

General cargo volumes rose by 36% YoY to succeed in 13.4 million tonnes in Q1 2024, in contrast with 9.8 million tonnes in Q1 2023, largely pushed by the consolidation of Noatum and KGTML.

Ro-Ro volumes elevated by greater than fourfold YoY to 307,000 autos in Q1 2024, together with the consolidation of Noatum’s volumes, whereas cruise passenger volumes declined 8% YoY in the course of the quarter because of the influence of the Red Sea disruptions on the Aqaba Cruise Terminal operations (+2% YoY in cruise passenger volumes in the UAE).

In the Economic Cities & Free Zones (EC&FZ) Cluster, 1.4 sq km of further new leases (web) had been signed in Q1 2024. Occupancy in KEZAD Communities continued to enhance, reaching 61% in the primary quarter of 2024, up from 47% in Q1 2023 and 60% on the finish of 2023. Demand for gasoline remained regular (-1% YoY), and warehouse occupancy improved additional to 88%, up from 71% in Q1 2023 and 87% in This fall 2023.

In the Maritime & Shipping Cluster, all operational indicators recorded robust progress in Q1 2024. The whole vessel fleet reached 263, up from 184 in Q1 2023, including capability throughout all enterprise segments – Marine Services, Container, Bulk, Ro-Ro, and Offshore & Subsea.

With the consolidation of GFS efficient 1st February 2024, AD Ports Group has change into the world’s third largest feeder container transport firm by capability, with a container vessel fleet of 49 and a complete vessel fleet capability of 139,000 TEUs. Maritime connectivity, a key ingredient in the built-in provide chain ecosystem that has been nurtured in Abu Dhabi over the previous few years, has leapfrogged with the acquisition of GFS, considerably strengthening the UAE Capital’s hub-and-spoke mannequin with 23 feeder companies, connecting clients to twenty-eight international locations and 78 ports alongside key commerce routes for Abu Dhabi.

Container volumes elevated greater than four-fold YoY to 450,000 TEUs in Q1 2024; and marine companies actions (vessel calls, towing companies, pilot companies) all skilled mid-single digit progress YoY.

With its mixed feeder container transport operations, which embrace GFS, Safeen Feeders, and Transmar, AD Ports Group loaded one TEU each 14 seconds in Q1 2024.

In the Logistics Cluster, polymer volumes elevated 34% YoY in Q1 2024, whereas international ocean and air freight forwarding volumes elevated 13% YoY and declined 3% YoY, respectively. Ocean freight forwarding quantity good efficiency was pushed by a mixture of natural progress, particularly in Turkey, new buyer acquisition following the deployment of latest options, and beneficial market dynamics. As for air freight forwarding volumes, worth discussions with some current clients exerted strain on volumes.

In the Digital Cluster, Foreign Labour Services (FLS) transactions, exterior initiatives, and the beginning of safety companies (by Nishan Security Services) supported the operational efficiency of the cluster.

Financial Performance

The EC&FZ Cluster recorded income progress of seven% YoY to succeed in AED 461 million in Q1 2024, pushed by warehouse leases and KEZAD Communities as utilisation charges in these two enterprise segments proceed to extend steadily.

The cluster’s EBITDA amounted to AED 305 million for the quarter, translating into an EBITDA margin of 66%, in comparison with 68% in Q1 2023 and 63% adjusted for a one-off in This fall 2023.

The Ports Cluster’s income grew by 80% YoY to AED 565 million in Q1 2024, fuelled by robust progress of 55%, 115%, and 271% YoY in port leases, common cargo dealing with, and Ro-Ro dealing with. This progress was bolstered by the contribution of Noatum and KGTML in the final cargo enterprise and Noatum in the Ro-Ro enterprise whereas the continued ramp-up of South Quay and KPL at Khalifa Port supported robust momentum in the port leasing enterprise. Additional container revenues, together with that from the container terminal in Pakistan-Karachi (KGTL) and Noatum’s container actions in Spain, have additional boosted the cluster’s top-line efficiency since Q3 2023. Adjusting for the M&A impact, consisting of Noatum Terminals enterprise in Spain (3-month contribution) and Pakistan’s KGTL (3-month contribution) and KGTML (2-month contribution), Ports Cluster income elevated by 17% YoY in Q1 2024.

The cluster’s EBITDA reached AED 249 million in Q1 2024, implying an EBITDA margin of 44%, down from 55% in Q1 2023 and 45% in This fall 2023 because of the change in enterprise combine from worldwide actions.

In Q1 2024, the Maritime & Shipping Cluster sustained a powerful high line progress momentum, with income hovering 92% YoY to AED 1.76 billion in Q1 2024, pushed by Marine Services (+384% YoY), Shipping (+90% YoY), and Offshore & Subsea (+48% YoY). Adjusted for M&A impact, 2-month contribution from GFS and 3-month contribution from Noatum Maritime, the Cluster’s income progress reached 27% YoY.

The Maritime & Shipping Cluster was the most important income and EBITDA contributor, accounting for 44% and 37% of the Group income and EBITDA, respectively. Additional investments had been made in Offshore & Subsea capability to proceed to diversify the income combine and construct a synergistic portfolio of property much less vulnerable to fluctuating market dynamics.

The cluster’s EBITDA amounted to AED 436 million, translating into an EBITDA margin of 25% vs. 32% in Q1 2023 and 23% adjusted for one-offs in This fall 2023.

As anticipated, the Red Sea disruptions have had a constructive influence on the cluster’s Shipping enterprise, which represented 54% of the cluster’s whole income in Q1 2024, up from 46% in 2023 given the 2-month contribution of GFS. About 29% of the feeder container volumes transported in Q1 2024 had been associated to the 7 Red Sea companies operated in the course of the quarter. Both demand and charges for transport operations in the Red Sea have been trending larger and present situations appear to be entrenched and are more likely to persist in the approaching quarters.

The Logistics Cluster’s income jumped nearly seven-fold YoY to AED 1.08 billion in Q1 2024, primarily pushed by the consolidation of Noatum Logistics (3-month contribution) and Sesé Auto Logistics (2-month contribution), and the beginning of operations of ADL-Ulanish (1-month contribution), a brand new logistics JV in Uzbekistan. LFL income progress for the cluster reached 49% YoY, supported by the polymer enterprise and further natural revenues from ADL-Ulanish.

The cluster’s EBITDA nearly tripled YoY to AED 93 million in Q1 2024, implying an EBITDA margin of 9% vs. 23% in Q1 2023 and 6% adjusted for one-offs in This fall 2023.

The Digital Cluster’s income grew by 50% YoY to AED 151 million in Q1 2024 (+38% YoY on a LFL foundation, adjusting for the consolidation of TTEK (3-month contribution) and Dubai Technologies (1-month contribution). This progress was pushed by larger income from Foreign Labour Service (FLS) transactions and exterior initiatives, and the beginning of safety companies (by Nishan Security Services).

The cluster’s EBITDA amounted to AED 94 million in Q1 2024 (+60% YoY), ensuing in an EBITDA margin of 62% vs. 58% in each Q1 2023 and This fall 2023.

On the Balance Sheet entrance, whole property grew 34% YoY to AED 58.3 billion in Q1 2024, whereas whole fairness elevated 12% YoY to AED 25.0 billion.

Net debt to EBITDA ratio dropped to three.4x in Q1 2024, from 4.4x on the finish of 2023, on the again of the robust quarterly EBITDA efficiency, which higher mirrored, though not totally but, not too long ago accomplished M&A transactions. The Group’s decrease leverage continues to help investment-grade credit score rankings.

The Group’s Capital Expenditure (CapEx) reached AED 1.27 billion in Q1 2024, in line with the Group’s front-loaded AED 12-15 billion natural capex steering between 2024 and 2028.

Cash Flow from Operations greater than doubled to AED 781 million in Q1 2024 on account of higher working efficiency and enhanced working capital, nevertheless the numerous improve in Cash Used in Investing Activities (one-off influence from the completion of a number of M&A transactions mixed with ongoing natural CapEx investments) led to a bigger damaging Free Cash Flow for the quarter.

Martin Aarup, Group Chief Financial Officer, AD Ports Group, mentioned: “Our robust Q1 2024 monetary outcomes replicate our prioritisation of synergistic and sustainable progress, coupled with income diversification and value optimisation. The Group recorded EBITDA of AED 1.04 billion in Q1 2024, up 49% year-on-year. Through prudent monetary stewardship and targeted capital allocation based mostly on strategic priorities, we’ll proceed to steer AD Ports Group towards a unstable financial backdrop, guaranteeing it stays resilient in the face of financial turbulence and optimally positioned to capitalise on progress alternatives, while we progress alongside our value-enhancing trajectory.”

Ross Thompson, Group Chief Strategy and Growth Officer, AD Ports Group, mentioned:” Our progress technique with complementary drivers – the operational ramp-up of current property, and M&A exercise domestically and internationally – is properly supported by our stable operational and monetary outcomes, and will guarantee resilient enlargement by financial and business cycles. Going ahead, we plan to commercialise and drive up utilisation of current and upcoming property, maximising their worth, whereas we concentrate on consolidating our place in Abu Dhabi throughout all clusters, as international direct investments in the UAE proceed to soar in line with the federal government’s aggressive technique to diversify the financial system away from the oil and gasoline sector.”

Summarised Consolidated Financial Results

AED m	Q1 2023	This fall 2023	Q1 2024	Q1 2024 vs. Q1 2023
Revenue	1,817	3,566	3,888	114%
EBITDA1)	699	524	1,039	49%
EBITDA Margin %	38.5%	14.7%	26.7%	-11.7%
Profit Before Tax	363	273	462	27%
Total Net Profit	363	285	400	10%
Attributable to the Owners of the Company	331	74	314	-5%
Non-Controling Interests	32	211	86	172%
Reported EPS (AED)2)	0.07	0.01	0.06	-5%
Total Assets	43,316	55,611	58,254	14,937
Total Liabilities	21,078	31,302	33,300	12,223
Total Equity	22,238	24,309	24,953	2,715
Cash Flow from Operations	335	1,202	781	134%
CapEx	(1,016)	(1,525)	(1,271)	25%
Cash Flow Used in Investing Activities	(878)	(1,565)	(2,790)	(1,912)
Free Cash Flow (FCFF)	(544)	(364)	(2,009)	(1,465)
Net Debt3)	5,930	11,771	14,330	8,400
Net Debt / EBITDA (x)3)	2.1	4.4	3.4	1.3
Return on Average Capital Employed – RoACE (%)4)	6.7%	5.6%	6.5%	-0.2%