Agility has unveiled its financial achievements for the fourth quarter and the entirety of 2023.
With Q4 earnings hitting KD 26 million, or 10.2 fils per share, the company mirrored its performance from the previous year. Notably, the EBITDA for the same quarter saw a substantial rise of 21.6%, reaching KD 77.5 million, alongside a revenue increase of 2.2% to KD 343.9 million.
For the year 2023, Agility disclosed a net profit of KD 83.6 million, marking a 22% increase from the prior year, with earnings per share at 32.7 fils. The company’s EBITDA surged by 42.4% to KD 257.2 million, while revenues leaped by 56.7% to an impressive KD 1,353 million. This growth trajectory is particularly remarkable considering the only inclusion of DSV cash dividends in the income statement, which, if adjusted for DSV’s EBITDA, would amplify Agility’s EBITDA by an estimated KD 90 million.
Agility’s Vice Chairman, Tarek Sultan, expressed optimism about the company’s future, emphasizing its successful navigation through volatile markets and a challenging macroeconomic landscape. The company’s significant EBITDA growth was attributed to robust performance across its operating entities and a buoyant global equity market, particularly benefiting its Investments segment. Agility’s strategic moves, including two funded equity collar agreements to protect the value of its DSV stake, underscore its proactive approach to growth and value preservation.
“Agility delivered on a track record of positive momentum in 2023, despite ongoing volatile markets and the challenging macro environment. Agility ended the year with a 42.4% growth in EBITDA, driven by strong performance across our operating entities,” said Sultan.
The board of Agility is proposing a cash dividend of 10%, equivalent to 10 fils per share for 2023, pending General Assembly approval. This decision reflects the company’s steadfast commitment to shareholder value, especially against the backdrop of global market unpredictability. This follows the board’s decision on March 28 to distribute interim dividends, including a cash dividend of KD 25.5 million and a significant stock dividend from its Agility Global PLC subsidiary.
Agility’s controlled businesses, encompassing Aviation Services, Fuel Logistics, and other sectors, have shown exceptional growth in revenue and EBITDA, propelled by strategic expansions, recovery in global air travel, and diversified service offerings. Menzies Aviation and Tristar notably outperformed expectations, with significant revenue increases and operational expansions across geographic regions.
Tristar’s consolidated revenue grew 33.3% vs. FY 2022. This performance was driven by Tristar’s diversified portfolio of services.
Tristar ended 2023 with revenue exceeding $1 billion. This was driven by the acquisition of HG storage in 2022 in addition to the growth in the Fuel and Road Transport & Warehousing segments, underpinned by new contract wins. The Maritime segment showed continued resilience as markets remained strong throughout the year. Tristar expects to maintain its momentum in 2024.
Agility’s strategic investments, particularly in DSV, have been meticulously managed to safeguard value and leverage market opportunities, demonstrating Agility’s adeptness at navigating complex global markets. The company’s portfolio of controlled businesses and strategic investments underscore its robust financial health and optimistic outlook for continued growth and shareholder value creation in 2024 and beyond.
