AD Ports’ fourth-quarter net profit declines on one-off charges amid sharp rise in revenue

Abu Dhabi Ports Group reported a drop in its fourth-quarter net profit mainly due to one-off charges, even as revenue during the period surged on strong maritime and shipping activity, as well as recent acquisitions.

Net profit attributable to the owners of the company for the three-month period to the end of December fell to Dh91 million ($24.7 million), compared with Dh331 million during the same period last year, “primarily due to extraordinary one-off items”, the company said in a filing to the Abu Dhabi Securities Exchange, where its shares are traded.

Revenue during the period more than doubled to Dh3.57 billion, driven by its maritime and shipping, ports, logistics and digital clusters, as well as the impact of mergers and acquisitions. The acquisition of Spanish logistics company Noatum for Dh2.5 million, which was completed on June 30, had a six-month impact, AD Ports said.

“Despite strong topline and operating results, higher depreciation and amortisation charges – including amortisation of intangibles following the finalisation of the purchase price allocation process of recent acquisitions – as well as finance costs and tax weighed on total net profit performance,” it said.

Expected normalisation of interest rates will also help narrow the gap between topline and bottomline growth, the company added.

AD Ports, which has a portfolio spanning 27 terminals, currently has a presence across more than 40 countries. It also operates more than 550 square kilometres of economic zones within Kezad Group in Abu Dhabi.

The company has been rapidly expanding its presence in recent years. Last month, its Spanish operations division Noatum Terminals acquired APM Terminals Castellon for €10 million ($11 million) in a move to strengthen operations in the western Mediterranean region.

In June, it signed a 50-year agreement with Karachi Port Trust, to boost infrastructure at the port in Pakistan’s commercial hub. This month, AD Ports, with Kaheel Terminals, also secured a second port concession agreement in Karachi for bulk and general cargo operations.

In January, the company also announced a $3 million investment in three cruise terminals in Egypt as part of a 15-year concession agreement with the Red Sea Port Authority that covers the Safaga, Hurghada and Sharm El Sheikh ports.

AD Ports reported 2023 fullyear revenue growth of about 112 per cent to Dh11.68 billion, while net profit attributable to owners in the period dropped 13 per cent to Dh1.09 billion.

General cargo volumes rose by 26 per cent annually to reach 40 million tonnes last year.