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AD Ports Group reports strong Q2 2024 results
AD Ports Group’s Q2 2024 revenue more than doubled YoY, driven by organic growth, acquisitions, and increased long-term contracts.
AD Ports Group has announced its financial results for the second quarter of 2024. The group’s revenue more than doubled year-on-year (YoY), reaching AED4.18 billion (US$1.14 billion), driven by both organic expansion and acquisitions.
The group’s revenue in Q2 2024 rose by 6% YoY on a like-for-like (LFL) basis when adjusted for mergers and acquisitions. The overall increase was attributed to the organic growth in the company’s core clusters and the integration of newly acquired entities, such as Noatum and Global Feeder Shipping (GFS).
Notably, 46% of the revenue generated in the first half of 2024 came from long-term contracts, a slight improvement from the 44% recorded in Q1 2024.
AD Ports Group’s earnings before interest, taxes, depreciation, and amortization (EBITDA) soared by 56% YoY to AED 1.07 billion in Q2 2024, with a modest 8% YoY growth on a LFL basis.
However, the EBITDA margin saw a decrease to 25.6%, down from 33.3% in Q2 2023, primarily due to changes in the revenue mix. Despite this, the group’s profitability remained strong, with total net profit reaching AED 439 million, marking a 42% increase YoY.
When adjusted for the introduction of corporate income tax in the UAE, the net profit growth was 55% YoY. Net profit after minorities also rose by 16% YoY to AED 333 million.
Credit: AD Ports Group
Partnerships and acquisitions drive expansion
AD Ports Group continued its expansion into new markets, forming a partnership with Adani Ports to acquire a 30% stake in the Tanzania International Container Terminal Services (TICTS) at Dar es Salaam Port.
Additionally, Noatum, a subsidiary of AD Ports Group, launched new maritime services in Türkiye, further extending the group’s global footprint.
The acquisition of an 81% stake in a joint venture to upgrade and operate the Luanda multipurpose port terminal in Angola, along with a 90% stake in another JV for logistics services in the Angolan market, also highlights the company’s commitment to expanding its international operations.
Ports Cluster performance remains strong
The Ports Cluster delivered a robust financial performance in Q2 2024, driven by the general cargo, container, and Ro-Ro businesses. Revenue for the cluster increased by 13% YoY when adjusted for the M&A impact, though profitability saw a slight decline due to the evolving revenue mix.
Container throughput saw significant growth, with overall utilisation rising to 62%, up from 56% in Q2 2023. Khalifa Port, which accounted for 85% of the group’s total container throughput, experienced a sharp increase in utilisation at its two operational terminals, reaching 71%, compared to 60% in the same period last year.
General cargo volumes also witnessed a substantial increase, rising by 46% YoY to 12.8 million tons in Q2 2024, driven largely by the consolidation of Noatum Terminals and Karachi Gateway Terminal Limited (KGTML) in Pakistan.
Credit: AD Ports Group
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