Abu Dhabi Ports Group has reported Dh1.36 billion in net profit for 2023, a 6% increase compared with its 2022 results. The group’s revenue also doubled year-on-year to Dh11.68 billion, driven by the maritime and shipping, ports, logistics and digital clusters sectors.
The company’s results also reflected the effect of the company’s 2023 mergers and acquisitions (M&A), worth Dh 2.2 billion. The largest of these was the acquisition of Spanish logistics company Noatum, which took place on 30th June 2023.
AD Ports’ yearly revenue would amount to Dh8.71 billion on a like-for-like (LFL) basis after adjusting for the effect of M&A.
AD Port’s profit for the last quarter of 2023 fell to Dh91 million compared to Dh331 million in the same period last year, “primarily due to extraordinary one-off items”, the company said in a filing to the Abu Dhabi Securities Exchange.
However, revenue for the same period more than doubled to Dh3.57 billion,
This came as the leading global facilitator of logistics, industry and trade, today announced its preliminary financial results for the 12 months ending 31st December 2023, reporting strong operational and financial performance, with revenue more than doubling year-on-year to AED11.68 billion, +58% YoY to AED8.71 billion on a like-for-like (LFL) basis after adjusting for the effect of mergers and acquisitions (M&A).
“Navigating the continually evolving, and at times unpredictable, landscape of global trade, our strategic investments have positioned AD Ports Group at the forefront of innovation and growth,” said Captain Mohamed Juma Al Shamisi, Managing Director and Group CEO, AD Ports Group.
The company stressed that “despite strong top-line and operating results, higher depreciation and amortisation charges, including amortization of intangibles following the finalisation of the purchase price allocation process of recent acquisitions, as well as finance costs and tax weighed on total net profit performance”. Interest rate cuts are expected to narrow the gap between top-line and bottom-line growth.
In 2023, AD Port’s total assets grew 44% YoY to Dh55.39 billion in 2023, while shareholders’ equity increased 8% YoY to Dh20.83 billion. The Group’s capital expenditures (CapEx) reached Dh4.57 billion in 2023.
Read Sea disruptions
In the statement, the company also stressed the impact that Red Sea disruptions will have on the outlook for 2024. affecting both volumes and prices.
“The increased transit time of around two weeks for vessels on the main East-West trade lane, rerouted through the Cape of Good Hope, has resulted in a stronger demand for tonnage, it said. “This, in turn, has not only been absorbing new supply coming online, but also initiated an upward trend in freight rates, mainly for ocean freight at this time”
AD Ports said Red Sea disruptions are expected to continue to bolster both rates and demand for freight and might have a more pronounced knock-on effect on AD Ports Group operations.