AD Ports Group, an enabler of integrated trade, transport, and logistics solutions, reported today record levels of revenue and profit in Q3 2024 of AED4.66 billion ($1.27 billion) and AED445 million ($121.15 million), respectively, driven by strong growth across its core businesses.
AD Ports Group’s total net profit rose 11 percent year-on-year meanwhile, net profit after minorities declined 21 percent to AED301 million, impacted by a one-off AED40 million accounting charge related to debt refinancing.
“Our strong third-quarter results, which set records for quarterly revenue and profitability, illustrate once again the robust underlying health of our core businesses and the value-enhancing benefits of AD Ports Group’s ‘intelligent’ internationalization strategy, which under the wise guidance of our leadership in the UAE is driving a prudent, selective global expansion coupled with an emphasis on sustainability,” stated Captain Mohamed Juma Al Shamisi, managing director and group CEO, AD Ports Group.
Revenues reach all-time high
The group’s revenues rose 10 percent year-on-year due to a 60 percent surge in vessel trading activities. On a like-for-like basis, adjusted for M&A effect and vessel trading activities, Q3 2024 revenue grew 28 percent annually. AD Ports Group attributed the all-time high quarterly revenue to strong performance across the board, from all clusters. The company added that 40 percent of 9M 2024 revenues were long-term/sticky revenues, primarily diluted by the strong container shipping business performance.
EBITDA grew 60 percent year-on-year to AED1.21 billion in Q3 2024, raising margins from 17.9 percent in Q3 2023 to 26 percent in Q3 2024.
“The group recorded a record quarterly EBITDA of AED 1.21 billion in Q3 2024, up 60 percent year-on-year, and 63 percent on a like-for-like basis. Our demonstrated restraint on capex in Q3 2024, and our near 100 percent cash conversion rate, are strengths that will continue to drive our profitable growth despite prevailing macroeconomic and geopolitical turbulence,” noted Martin Aarup, AD Ports Group chief financial officer.
Total assets surge to AED63.7 billion
AD Ports Group also witnessed a 22 percent annual expansion in total assets to AED63.7 billion and a 21 percent annual increase in total equity to AED28 billion. The limited increase in total debt and strong EBITDA performance resulted in an improving net debt-to-EBITDA ratio to 3.5x as of Q3 2024 compared to 3.6x in Q2 2024 and 4.0x at the end of the same period last year.
“As 2024 comes to a close, there is reason for optimism. While geopolitical disruptions continue to affect visibility, seaborne trade volumes are still expected to grow 2.2 percent this year, and by 2 percent in 2025, according to Clarkson Research. The global economic situation has developed slightly better than expected this year, and the regional macro environment remains solid, supporting demand and rates for AD Ports Group,” added Al Shamisi.
Read: Parkin revenues surge 25 percent to $65.12 million in Q3 2024
Cash flow more than doubles
In September 2024, AD Ports Group also strengthened its liquidity position by refinancing and upsizing its syndicate loan and Islamic debt facility amounting to a total of AED8.2 billion into two new facilities for a total of AED10.2 billion, lowering spreads and extending maturities to 2026 and beyond.
Meanwhile, cash flow from operations more than doubled quarter-on-quarter to AED1.2 billion driven by strong EBITDA performance and a higher cash conversion ratio of close to 100 percent. Combined with a 31 percent quarterly drop in capital expenditure, it resulted in a positive free cash flow of AED307 million for the quarter.
AD Ports Group also spent AED808 million on organic growth capex last quarter, bringing the outlay to AED3.3 billion year-to-date. Capex guidance remains unchanged at AED12-15 billion for the next five years, between 2024 and 2028, while capex for the year is likely to end at around AED4.5 billion.
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