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.
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