AD Ports Group reports strong results for Q1 2024

AD Ports Group has announced its financial results for Q1 2024, with revenue more than doubling Year-on-Year to AED3.89 billion (US$1.06 billion), +22% YoY on a Like-For-Like basis after adjusting for the effect of mergers and acquisitions.

In Q1 2024, AD Ports Group completed 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 growth were driven by the Maritime & Shipping, Ports, Logistics, and Digital Clusters, as well as the mergers and acquisitions effect, particularly Noatum’s acquisition, which was completed on 30th June 2023, and GFS’ acquisition, which was completed on 31st January 2024.

The Group EBITDA margin of 26.7% is well within the 25-30% range guidance confirmed at the end of 2023 for the medium term.

Despite higher depreciation and amortisation charges (+64% YoY) as well as finance costs (+70% YoY) in Q1 2024, and mergers and acquisitions transaction costs, profit before tax and minorities grew by an impressive 27% YoY to AED462 million, including AED62 million dividend income from the Group’s 10% investment in National Marine Dredging Company (NMDC).

The introduction of corporate income tax in the UAE in 2024 and the higher share of profits coming from foreign operations (also taxable) resulted in a total net profit growth of 10% YoY to AED400 million, and a net profit after minorities of AED314 million.

Operational performance

Operationally, the Ports Cluster saw container throughput grow to 1.37 million TEUs in Q1 2024, +26% YoY, driven by higher overall utilisation of 55% compared to 51% in Q1 2023 and 52% in Q4 2023. At Khalifa Port, which accounted for 88% of total throughput, utilisation at the two operational container terminals increased sharply to 62%, up from 55% in Q1 2023 and 56% in Q4 2023. On an LFL basis (adjusting for KGTL and Noatum), container volumes grew 14% YoY.

Container volumes increased more than four-fold YoY to 450,000 TEUs in Q1 2024; and marine services activities (vessel calls, towing services, pilot services) all experienced mid-single-digit growth YoY.

With its combined feeder container shipping operations, which include GFS, Safeen Feeders, and Transmar, AD Ports Group loaded one TEU every 14 seconds in Q1 2024.

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

Ro-Ro volumes increased by more than fourfold YoY to 307,000 vehicles in Q1 2024, including the consolidation of Noatum’s volumes, while cruise passenger volumes declined 8% YoY during the quarter due to the impact of the Red Sea disruptions on the Aqaba Cruise Terminal operations (+2% YoY in cruise passenger volumes in the UAE).

AD Ports Group’s summarised consolidated financial results for Q1 2024: