AD Ports Group sees profits soar to Dhs1.36bn in 2023

February 15, 2024 134

Revenue growth was driven by the Maritime & Shipping (M&S), Ports, Logistics, and Digital Clusters, with M&S contributing the most

Logistics giant and port operator, AD Ports Group reported strong operational and financial results in 2023.

Revenue soared 112 per cent year-on-year (YoY) to Dhs11.68bn in 2023. Earnings before interest, taxes, depreciation, and amortisation (EBITDA) grew 23 per cent YoY to Dhs2.67bn, with a strong 22.8 per cent EBITDA margin.

Acquisitions, organic investments, and an evolving business mix impacted EBITDA margins.

Revenue growth was driven by the Maritime & Shipping (M&S), Ports, Logistics, and Digital Clusters, with M&S contributing the most.

The Noatum acquisition announced in June last year also contributed to the group’s strong results.

Profit before tax reached Dhs1.41bn, and total net profit reached Dhs1.36bn, up 6 per cent YoY.

The group strategically invested Dhs4.57bn in growth capital expenditure, focusing on organic expansion.

Free cash flow remained negative due to ongoing investments, but the group maintains a solid financial position.

The group has said it maintains a strong balance sheet and investment-grade credit ratings.

We’re proud to announce AD Ports Group’s record-breaking financial results for 2023! pic.twitter.com/ECfGgot6XJ
— AD Ports Group (@ADPortsGroup) February 15, 2024

Operational performance highlights

  • Container throughput increased 13 per cent YoY to 4.91 million TEUs.
  • General cargo volumes rose 26 per cent YoY to 40 million tonnes.
  • Ro-Ro volumes jumped nearly fourfold YoY to 777,000 vehicles.
  • Cruise passenger volumes soared 183 per cent YoY despite temporary disruptions.
  • Strong growth in logistics, digital, and EC&FZ Clusters.

Captain Mohamed Juma Al Shamisi, managing director and Group CEO, AD Ports Group, said: “Navigating the continually evolving, and at times unpredictable, landscape of global trade, our strategic investments have positioned AD Ports Group at the forefront of innovation and growth. Our focus on expanding our infrastructure and enhancing operational efficiencies continue to set a new benchmark for excellence in the maritime and logistics sector.

“This steadfast approach, guided by the vision of the UAE’s wise leaders, has led us to contribute significantly to the economic diversification and industrial advancement of our nation.”