Ross Thompson, group chief strategy and growth officer, AD Ports Group, says that disruption in the post Covid-19 market has been off-set by pent-up demand helping the company experience record growth in the first half of 2022.
Net Profit growth accelerated to 59% YoY reaching $81,676,767 in Q2 2022 (+49% YoY growth in H1 2022) “despite higher depreciation charges and higher finance costs from the ongoing investment programme as well as higher provisions for ECL (Expected Credit Loss)”, said DP World in statement.
According to its Q2 financial report, it added: “revenue grew 35% YoY to $338,141,815 in Q2 2022 (+25% YoY growth in H1 2022), achieving record results for H1 growth mainly driven by the Maritime and Economic Cities & Free Zones (EC&FZ) Clusters, and to a lesser extent by the Digital Cluster.”
The 22.32% stake in Aramex, which was transferred to AD Ports Group in January 2022, contributed £3,267,070.68 to EBITDA and Net Profit in Q2 2022 ($6,261,885 in H1 2022).
In June 2022, AD Ports Group reached an agreement with National Marine Dredging Company (NMDC) to launch a new JV, SAFEEN Surveys and Subsea Services. The new company will offer offshore surveys and subsea services, including commercial diving services and unmanned vessel inspections, in the UAE, the GCC, and some international markets. In addition, the JV will provide innovative solutions to meet the needs of offshore operations related to the oil and gas and renewable energy sectors.
In the same month, AD Ports Group announced its first international acquisition in Egypt with the purchase of a 70% stake in International Associated Cargo Carrier (IACC), which fully owns Transmar International Shipping Company and Transcargo International (TCI) – a regional container shipping company that operates across the Middle East, Red Sea, Arabian Gulf and Eastern Coast of Africa and a terminal operator and stevedoring company, mainly operating out of the Adabiya Port, where it is the exclusive container operator, respectively.
“Global markets are still turbulent with a high inflation environment, rising interest rates, geopolitical tensions as well as continued ramifications of the COVID-19 pandemic, including supply chain disruptions and supply shortages,” said Thompson.
“Therefore, pressure on global trade volumes is increasing with macroeconomic headwinds, lockdowns in China and a ‘cost of living crisis’ but has been largely offset by post COVID-19 pent-up demand for goods for the time being. As a result, global seaborne container trade volumes decreased around 2.5% in H1 2022, with full-year forecasts expected to finish higher at near 1% YoY growth.
“On the other hand, shipping rates remain at extraordinary levels and their outlook for the rest of the year remains positive, with continuing disruptions providing support despite trade headwinds.
“In this challenging global context, our unique integrated business model, built upon a firm foundation of long-term contracted revenues, offers good revenue stability and visibility while our extensive investment programme, both organically and through acquisitions, provides a healthy growth platform.”
In July 2022, AD Ports Group launched a joint venture with SEG, one of the largest oil and gas companies in Uzbekistan, to open new logistics and freight businesses and signed a Memorandum of Understanding to develop a food storage and distribution hub to enhance Uzbekistan’s food trade across global markets and drive Central Asian food security.
Captain Mohamed Juma Al Shamisi, managing director and Group CEO, AD Ports Group, added: “The momentum of our growth journey has accelerated throughout the first half of the year, and we anticipate continuing to deliver on our performance for the remainder of the year. We are grateful to our wise leadership for their unwavering support towards our endeavours that seek to drive the economic growth, diversification, and industrialisation of the UAE.
“The Group’s core businesses have continued to rebound from the severe supply chain disruptions of last year while our new ventures, enhanced service offering, and diversification strategy into synergistic new businesses have been yielding positive results.
“In Q2 2022, we continued to invest heavily in order to deliver future growth. Moreover, we have also benefitted from the macro picture in the Gulf region, and in the UAE in particular. Not only have oil prices been increasing sharply, which has accelerated the country’s economic growth, including the non-oil economy, but AD Ports Group is also well-positioned to be one of the key beneficiaries of Abu Dhabi’s Industrial Strategy, which aims to more than double the size of its manufacturing sector to AED 172 billion by 2031.”
More generally, AD Ports Group has been strategically aligning its business with many of the emirate and the country’s long-term objectives, including Abu Dhabi’s Industrial Strategy, the UAE’s Net-Zero by 2050 strategic initiative, and the country’s National Food Security Strategy 2051.”
