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Abu Dhabi Ports Group recently announced its financial results for the second quarter of 2022.
The group’s revenue grew 35% year-on-year to AED1.242 billion in Q2 2022 (reflecting a 25% year-on-year increase in the first half of 2022), achieving a growth driven mainly by Maritime and Economic Cities and Free Zones (EC&FZ) clusters and digital clusters .
The port cluster’s revenue performance was hampered by unfavorable base effects from one-off sand supply contracts from March to October 2021. However, on a similar basis, the port cluster’s revenue grew 20% year over year.
Earnings before interest, taxes, depreciation and amortization (EBITDA) rose 41% year-on-year to AED532 million in the second quarter of 2022 (reflecting a 37% year-on-year increase in the first half of 2022), with improved EBITDA margins, according to Abu Dhabi Media Office Nearly 200 basis points to 42.8%.
As operations across all clusters continue to ramp up, and barring a one-time negative impact, the group’s EBITDA performance should continue to be supported by higher operating leverage.
This is despite higher depreciation expense and higher financial costs and higher expected credit loss provisions (expected credit losses) from the ongoing investment program.
The 22.32% stake in Aramex, which was transferred to AD Ports Group in January 2022, contributed AED12 million to EBITDA and net profit in Q2 2022 (AED23 million in H1 2022).
Consolidated capital expenditures in Q2 2022 reached AED 1.6 billion (AED 2.6 billion in H1 2022 compared to AED 1.1 billion in H1 2021).
AD Ports Group maintains a solid capital structure, sufficient liquidity and an investment grade credit rating to meet its future growth needs. As of the second quarter of 2002, the group had total debt of AED3.6 billion in 10-year bonds issued under the EMTN scheme in 2021, a cash position of AED1.8 billion and a net leverage ratio of 0.9 times.
The group has a well-managed debt maturity profile and adequate liquidity facilities. A $1 billion syndicated revolving credit facility (RCF) secured by a consortium of local and international banks in 2021 remains unused. The strategy remains to use bonds as the primary long-term funding tool, with RCF as liquidity support.
Captain Mohamed Juma Al Shamisi, Managing Director and Group Chief Executive Officer of AD Ports Group, said: “Our growth momentum has been accelerating in the first half of the year and we expect to continue delivering our performance for the remainder of the year. The Group’s core business continues to grow from Rebounding from severe supply chain disruptions last year, our new business, enhanced service offerings and diversification strategy to synergistic new businesses have all delivered positive results.”
He added: “In the second quarter of 2022, we continued to invest heavily for future growth. In addition, we benefited from the macro situation in the Gulf region, especially in the UAE. Not only has the oil price surged, accelerating the country, including the non-oil economy, AD Ports Group is also well-positioned to be one of the key beneficiaries of Abu Dhabi’s industrial strategy, which aims to double its manufacturing sector to Dh172 billion by 2031 Ram.”
Ross Thompson, Group Chief Strategy and Growth Officer, AD Ports Group, said: “Global markets remain volatile due to a high inflation environment, rising interest rates, geopolitical tensions and the ongoing impact of the COVID-19 pandemic, including supply chain disruptions and supply shortages. .
“As a result, pressure on global trade volumes is increasing with macroeconomic headwinds, China’s lockdown and the ‘cost of living crisis’, but this is largely being temporarily offset by pent-up commodity demand post-Covid-19. As a result, global Sea container trade volumes declined by around 2.5% in the first half of 2022 and the full-year forecast is expected to end with a year-on-year increase of nearly 1%.”
Thompson added: “Freight rates, on the other hand, remain at extraordinary levels and the outlook for the remainder of the year remains positive, supported by ongoing disruptions despite trade headwinds.
“In this challenging global context, our unique integrated business model, built on a solid foundation of long-term contracted revenue, provides excellent revenue stability and visibility, while our broad investment program, both organic and Both provide a healthy growth platform through acquisitions.”
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