27 C
Dubai
Friday, May 24, 2024
spot_img

AD Ports Group Achieves Record-Breaking Performance in Q3 2023

Abu Dhabi Ports Group has reported outstanding results for the third quarter of 2023, with a remarkable 189% year-on-year increase in revenue, reaching Dh4.24 billion. The growth was significantly influenced by strategic mergers and acquisitions, including Noatum’s Logistics, Maritime, and Ports businesses.

Cluster Contributions

On a like-for-like (LFL) basis, excluding the impact of M&A, revenue surged by 113% year-on-year. Key growth drivers included the logistics, maritime & shipping, ports, and EC&FZ clusters, with performances of 546%, 264%, 71%, and 20% year-on-year, respectively.

EBITDA and Margin Dynamics: AD Ports Group

AD Ports Group’s Q3 2023 EBITDA witnessed a 28% year-on-year increase, reaching Dh759 million. However, a higher contribution from maritime & shipping and logistics sectors led to a further EBITDA margin dilution to 17.9% for the quarter, compared to 40.5% in Q3 2022. The group maintains its EBITDA margin guidance of 25-30% in the medium term.

Net Profit and Cash Flow

Total net profit experienced a 20% year-on-year surge to Dh403 million, aligning with EBITDA performance. Despite negative net operating cash flows of Dh579 million, impacted by temporary working capital deterioration related to vessel trading activities, the group expects a recovery in Q4 2023 with associated cash collections.

Strategic Investments and Future Outlook: AD Ports Group

Capital Expenditures (CapEx) reached Dh800 million in Q3 2023, contributing to a year-to-date outlay of Dh3.65 billion in line with the group’s front-loaded Dh15 billion CapEx program for 2023-2027. The group’s Net Debt to EBITDA ratio stood at 4.0x at the end of Q3 2023, with an expectation of leverage normalization in the last quarter of the year.

Leadership Perspectives

Captain Mohamed Juma Al Shamisi, Managing Director and Group CEO of AD Ports Group, expressed satisfaction with the Q3 2023 growth, emphasizing strategic M&A activities and strong collaborations beyond traditional terminal operations. Martin Aarup, Group Chief Financial Officer, underscored the strength and resilience of the diversified business model, anticipating a normalization in leverage and a rebound in cash flows in Q4. Both leaders reiterated the group’s commitment to long-term vision, shareholder value enhancement, and contributing to the UAE’s economic diversification.

Also Read

Photographers in Dubai: Capturing the Essence of the Cit

New Charter Flight Services Connecting UAE to India and China on the Horizon

Related Articles

UAE: Silver Shines Bright Amid Record-High Gold Prices.

UAE: Silver Shines Bright Amid Record-High Gold Prices In a year marked by economic fluctuations and global uncertainties, the United Arab Emirates (UAE) has witnessed...

UAE Banks Report Increased Profits in Q1 2024, Al Ghurair Confirms.

UAE Banking Sector Thrives: Al Ghurair Reports Record Profits in Q1 2024 Surpassing Previous Year According to statements from prominent figures like Al Ghurair, chairman...

US Business Figure Condemns Elon Musk’s China Preference as Detrimental to India’s Interests

US Business Figure Condemns Elon Musk's China Preference as Detrimental to India's Interests In a surprising turn of events, a prominent US business figure has...

Walmart Implements Layoffs, Prompts Worker Relocation, Corporate Realignment

Walmart Implements Layoffs, Prompts Worker Relocation In a strategic move aimed at optimizing operations and adapting to changing market dynamics, retail giant Walmart has announced...

Dubai gold pricing: Why an attraction for gold enthusiasts?

Dubai Gold Pricing: Exploring the Allure for Gold Enthusiasts In Dubai, gold holds a special place in the hearts of both residents and visitors. The...

Latest Articles