The group said it achieved revenue growth of 73% compared to the same period last year, reaching 1.81 billion dirhams (about $490 million) in the first quarter of 2023.
Abu Dhabi Ports attributed these results to the strong performance of the maritime sector, the economic cities and free zones sector and the port sector, and benefited from acquisitions in 2022 and the first quarter of 2023, which included Divtec, Alligator Shipping, Seven Marine Operations, Transmar, TCI, and Co. collective housing.
Results from Abu Dhabi Ports Group’s business showed that earnings before interest, tax, depreciation and amortization increased by 33% compared to the same period last year, reaching 699 million dirhams (190, $3 million) in the first quarter of 2023. , driven by the performance of the maritime segment and the port segment and acquisitions, which resulted in the achievement of a profit margin before interest, taxes, depreciation and amortization of 38, 5% in the first quarter of 2023, in line with the group’s strategy. direction to achieve a profit margin of 35-40% in the short term.
Total net profit increased by 18% compared to the same period last year, reaching AED 363 million in the first quarter of 2023.
The maritime sector recorded revenue growth of 259% compared to the same period last year, reaching 915 million dirhams in the first quarter of 2023, driven by increased capacities, expanded service offerings and increased activities in new business sectors.
Growth from new acquisitions, which included Divtech, Alligator Shipping, Seven Offshore Operations and Transmar, contributed 30% of total segment revenue during the period.
This growth in the maritime sector is mainly driven by maritime activity, regional “container and bulk” freight operations and maritime services.
The economic towns and free zones sector achieved revenue growth of 13% compared to the same period last year, reaching 429 million dirhams in the first quarter of 2023, benefiting from previously signed land lease agreements , high utility revenue, and the merger with the collective housing company, whose revenue contribution amounted to approximately 73 million dirhams.
The economic towns and free zones sector also leased additional land of 1.4 square kilometers during the first quarter of 2023, to be on track towards achieving its annual plan to reach an area of ​​3.5 to 4.0 square kilometres, in addition to achieving a 46% increase in warehouse rentals compared to the same period last year.
The port sector recorded a 24% growth in revenue compared to the same period last year, reaching 314 million dirhams in the first quarter of 2023.
The sector also recorded container handling volume growth of 18% compared to the same period last year, benefiting from the gradual recovery of the supply chain after the Covid-19 pandemic, and a container utilization rates increased by 51% in the first quarter of 2023, compared to 43% in the first quarter. Starting in 2022, partner shipping lines have gradually shifted their regional container handling operations to Khalifa Port, in accordance with their contractual obligations.
The port sector also saw growth of 32% over the same period last year in ro-ro ship handling volume, 361% in cruise ship passenger numbers and 40% in cargo handling volume. general.
The logistics sector contributed to the group’s revenues of 139 million dirhams in the first quarter of 2023, down 3% year on year, its performance having been affected by the closure of a factory for one of the strategic concessionaires. , and the end of Covid-19 vaccine transport activities.
The digital sector also contributed to the achievement of relatively stable revenues for the group, amounting to 101 million dirhams during the first quarter of 2023, its performance having been affected by the drop in internal demand for IT services.
The group spent 1.02 billion dirhams in the first quarter of 2023 as part of the continued implementation of its investment program in order to diversify the company’s sources of income according to the set plan.
On the balance sheet, Abu Dhabi Ports Group maintained its sound financial position and solvency with a net debt to EBITDA ratio of 2.1x at the end of the first quarter of the year and limited debt service commitments short term.
Regarding cash flow, the group achieved net operating cash flow of 335 million dirhams in the first quarter of 2023, a marked increase compared to the same period last year.
The investment program continued in the first period of its “five-year” cycle to allocate free cash flow in accordance with the plan, which led to a negative financial flow of 544 million dirhams.
The most notable achievement since the start of 2023 was the announcement of the acquisition of 100% of the shares of T-Tech, the developer of border control and customs systems solutions, in addition to the finalization of the merger agreement with the collective housing company.
Abu Dhabi Ports Group’s efforts are now focused on closing the deal to acquire 100% of the shares of Noatum, a logistics services provider with operations in 26 countries across five continents, as well as 80% of the shares of Global Feeder . Shipping (GFS), an International Container Shipping Company headquartered in Dubai.
These acquisitions will expand the group’s global reach, increase its global logistics and freight services business, and strengthen its position as the largest single provider of regional container freight services in the region, and the third largest in the world. world in terms of capacity. , or about 100,000 TEUs.
The Abu Dhabi Ports Group expects to complete the acquisition of Noatum before the end of the second quarter of 2023, while the acquisition of GFS will be finalized before the end of the third quarter of the year.
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