AD Ports Group’s first-half revenue surges 21%

AD Ports Group on Saturday said its first-half revenue surged 21 per cent to Dh1.832 billion compared to Dh1.517 billion in the same period last year due to organic growth, diversification into new businesses, new leases and partnerships.

In a statement, the Abu Dhabi-based group said its EBITDA rose eight per cent year-on-year basis to Dh770 million, up from Dh714 million in the first half of 2020, with growth across most of the business clusters.

“Our results demonstrate our resilience and the robust growth we have achieved across our business in line with our strategy. We are committed to driving development and diversification to Abu Dhabi and the UAE’s economy,” Captain Mohamed Juma Al Shamsi, Group CEO, AD Ports Group, said.

“Our financial performance is underpinned by continued expansions and increased activity, with key partnerships and joint ventures being established that are expected to deliver reliable returns in the future,” he added.

The underlying business witnessed cargo volumes growing from 15 million metric tonnes in first half of 2020 to 25 million metric tonnes in January-June 2021 period, while container throughput grew from 1.57 million TEUs (twenty-foot equivalent units) to 1.59 million TEUs during the same period. The industrial zones leased about 2.4 million square metres of land during first half of 2021.

“We are focused on growing our customer base across all of our business clusters. A significant part of our business is based on long-term contracts that provide reliable and stable revenues,” said Captain Shamsi.

From a capital-raising standpoint, AD Ports Group successfully issued a Dh3.67 billion bond dually listed on the London Stock Exchange (LSE) and Abu Dhabi Securities Exchange (ADX) in May 2021, achieving the lowest coupon rate for an Abu Dhabi government-related entity at the time.

Operational highlights to date in 2021 include the formal inauguration of the expanded container terminal at Fujairah Port in June 2021.

“Our business model is based on long-term contracts with predictable cash flows, enabling us to plan and invest effectively. Coming out of the peak of the Covid-19 pandemic, we are focusing on delivering solid returns and managing our capital effectively,” Martin Aarup, group chief financial officer, AD Ports Group, said.

“Our invested capital increased from Dh19.4 billion in 2020 to Dh22.4 billion in 2021 in line with our ongoing expansion programme,” he added.

The group reported a slight decline in return on invested capital (ROIC) to 5.04 per cent, which was mainly due to increase in invested capital across the portfolio, especially in the ports and industrial zone businesses, which are expected to yield incremental returns going forward.

— business@khaleejtimes.com