AD Ports Group announced strong revenue growth in the first half of 2021, up 21% year-on-year to AED 1.832 billion (US$ 499 million)

AD Ports Group today announced its financial results for the first half of the year ended June 30, 2021. Reported revenue increased by 21% year-on-year to AED 1.832 billion (US$499 million), compared with AED 1.517 billion (US$413 million) in the same period last year. ) In the first half of 2020, driven by organic growth and diversified development into new businesses, new leases and partnerships.

EBITDA increased by 8% year-on-year to AED 770 million (US$210 million), higher than AED 714 million (US$195 million) in the first half of 2020. Most business clusters achieved growth.

Captain Mohamed Juma Al Shamsi, CEO of AD Ports Group, Said: “Our results demonstrate our resilience and the strong growth that we have achieved throughout our business in accordance with our strategy. We are committed to promoting the development and diversification of the Abu Dhabi and UAE economies. Our financial performance is subject to continued expansion. With the support of increased activities, major partnerships and joint ventures are being established and are expected to provide reliable returns in the future.”

“We are focused on expanding the customer base of all our business clusters. A large part of our business is based on long-term contracts that provide reliable and stable income.”

The freight volume of basic business increased from 15 million tons in the first half of 2020 to 25 million tons in the first half of 2021, while the container throughput increased from 1.57 million TEUs (20-foot equivalent units) to 1.59 million TEUs during the same period. The industrial zone leased approximately 2.4 million square meters of land in the first half of 2021.

From the perspective of fundraising, AD Ports Group successfully issued 3.67 billion dirhams in May (Fitch and Standard & Poor’s rated US$1 billion) on the London Stock Exchange (LSE) and Abu Dhabi Stock Exchange (ADX) In 2021, the dual-listed bond achieved the lowest coupon rate of government-related entities in Abu Dhabi at that time.

Highlights of operations so far in 2021 include the official opening of the expanded container terminal at Fujairah Port in June 2021.

Martin Aarup, Chief Financial Officer of AD Ports Group, Said: “Our business model is based on long-term contracts with predictable cash flow, allowing us to plan and invest effectively. Out of the peak of the COVID-19 pandemic, we focus on providing reliable returns and effectively managing our capital According to our ongoing expansion plan, our investment capital will increase from AED 19.4 billion (USD 5.3 billion) in 2020 to AED 22.4 billion (USD 6.1 billion) in 2021.”

The Group reported a slight decrease in the return on invested capital (ROIC) to 5.04%, which was mainly due to the increase in the investment capital of the entire investment portfolio, especially the port and industrial area business, which is expected to generate incremental returns in the future.