AD Ports Group has announced its financial results for the third quarter of 2022, posting a year-on-year (YoY) profit growth of 77 per cent.
Net profit soared to AED334 million ($90.9 million) in Q3 2022, and registered a 58 per cent YoY growth to AED941 million ($256 million) for the first nine months of this year.
The group’s revenue grew 53 per cent YoY to AED1.46 billion ($397.4 million) in Q3 2022; in 9M 2022, the company achieved a 35 per cent YoY growth to AED3.75 billion ($1 billion) driven by strong growth in its Maritime Cluster and a robust performance of its Economic Cities & Free Zones (EC&FZ) Cluster.
EBITDA increased 52 per cent YoY to AED594 million ($161.7 million) in Q3 2022, and 42 per cent YoY to AED1.65 billion ($449 million) for 9M 2022.
AD Ports Group made investment as part of its CapEx strategy, spending AED1.6 billion ($435.6 million) in Q3 2022 and AED4.2 billion ($1.14 billion) for 9M 2022.
One of the key highlights of the period was the announcement of the acquisition of an 80 per cent equity stake in Dubai-based Global Feeder Shipping (GFS), a global container shipping company, for AED2.9 billion ($800 million).
Upon completion, the acquisition, which is the company’s largest by AD Ports Group to date, is set to position AD Ports Group as the largest pure feeder operator in the region and the third largest globally by container capacity, which will be close to 100,000 TEU.
In September, AD Ports Group also completed the acquisition of a 70 per cent stake in International Associated Cargo Carrier (IACC) in Egypt, which fully owns Transmar and TCI, for an enterprise value of AED514 million ($140 million).
“These remarkable results demonstrate the effectiveness and impact of our ambitious growth strategy, as we seek new opportunities even in challenging global market conditions,” said Captain Mohamed Juma Al Shamisi, Managing Director and Group CEO, AD Ports Group.
“We have pursued joint ventures and acquisitions that have built supply chain density along major routes, accelerating trade, and building resilience for customers around the world.
“These new ventures have played a key role in expanding our service offering, enabling us to support customers at every stage of their business journey, and delivering exponential growth in our maritime business in particular.”
AD Ports and the International Development Bank (IDB) recently signed a Memorandum of Understanding (MoU) to review opportunities for ports and logistics projects that could enhance trade flows between the UAE and Iraq.