Wednesday, February 15, 2023 – 12:19 PM
ABU DHABI, 15th February, 2020 (WAM) — The Abu Dhabi Ports Group, the leading global engine of trade, industry and logistics, announced its results for the year 2022, recording strong operational and financial results with revenue growing by 41% year-on-year to reach 5.5 billion dirhams.
The group said, in a statement today, that net profits amounted to 1.3 billion dirhams during the year 2022, an increase on an annual basis by 53%, and attributed this to the remarkable performance in the work of the maritime sector and the port sector, in addition to acquisitions and new partnerships.
The company achieved an increase in EBITDA of 2.2 billion dirhams during 2022, and as a result of organic growth, EBITDA increased by 27% year-on-year to reach 2 billion dirhams.
The EBITDA margin reached 39.8% in 2022, and the earnings per share increased to reach 0.26 dirhams for the full year 2022, compared to 0.22 dirhams in 2021.
The volume of cash flow from operations reached 1.6 billion dirhams during 2022, which means a cash transfer of 74%, while capital expenditure directed towards organic growth amounted to 5.6 billion dirhams during 2022, as the group continues to implement organic capital investment plans.
On the operational front, the port sector achieved a growth in the volume of container handling that reached 4.33 million TEU (20-foot measurement) during 2022, a rate of more than 28% on an annual basis, which is attributed to the continued improvement of occupancy at the two current container terminals.
The freight of rolled goods and the transportation of passengers via cruise ships witnessed a strong recovery due to the easing of restrictions as a result of the (Covid-19) pandemic. As for the economic cities and free zones sector, during the year 2022 it witnessed the signing of new lease contracts for a net area of 4.2 square kilometers.
In the maritime sector, strong growth rates were recorded in all operational indicators including vessel fleet, anchorage rates, regional sea freight volumes, transshipment volumes and offshore services activities.
As for the logistics sector, its most notable achievement during the fourth quarter of 2022 was the announcement of the acquisition of 100% of the Noatum company, a leader in logistics services spread in 26 countries across four continents, with an institutional value of 2.5 billion dirhams (660 million euros).
Upon completion, the acquisition of value and cumulative profits will significantly expand the Group’s footprint and position it among the leading logistics and freight forwarding companies globally.
With regard to financial performance, the economic cities and free zones sector recorded a 6% growth in revenues on an annual basis, to reach 1,658 million dirhams during 2022, benefiting from previously signed land lease contracts, and high revenues from public utility services, as well as recording the highest levels of warehouse revenues. In addition to the positive impact of previous asset revenues related to lease contracts for Al Razeen residential cities for workers for the purposes of isolation and quarantine during the (Covid-19) pandemic.
Overall, Ports segment revenue grew 7% year-on-year to AED 1,135 million, supported by a mix of freight products and revenue from the acquisition of TCI, one of two companies under the International Cargo Affiliate Company (IACC). in Egypt.
Continued double-digit growth in concession and charter fees as well as a strong recovery in ro-ro and cruise ship operations offset the decline in general cargo revenues, which benefited from the positive impact of the one-off sand supply project during 2021.
On a like-for-like basis, Ports revenue grew 21% year-on-year, adjusted for the sand supply project contract as well as the acquisition of TCI.
Captain Mohamed Juma Al Shamsi, Managing Director and CEO of Abu Dhabi Ports Group, said: “The year 2022 was exceptional for us, as we achieved strong results that reflected the impact of our ambitious growth strategy, and our focus on fulfilling our promises to our partners and stakeholders, thanks to the continuous support of our wise leadership.”
Al Shamsi added: “The Group’s outstanding operational and financial performance is attributed to the strong performance of the maritime sector and the ports sector, supported by strategic investments, joint ventures, partnership contracts and acquisitions that enabled us to expand our geographical reach. Our services and offers played a role in strengthening our position as a major player in global trade and services.” In 2023, we will focus on maximizing returns and achieving more integration in our business portfolio, while providing our customers with a high-performance supply chain from start to finish.”
For his part, Martin Arup, CEO of the Financial Affairs Group – Abu Dhabi Ports Group, said: “We are pleased with the remarkable results we have achieved during the year 2022 by continuing to implement the ambitious organic capital spending program of 15 billion dirhams over the next five years, which aims to generate revenues with Spending 1.4 billion dirhams during the fourth quarter of 2022 and 5.6 billion dirhams during the entire year 2022, as well as by accelerating the pace of mergers and acquisitions, as we announced the conclusion of seven deals during the past year.
He added: “With the ratio of net debt to EBITDA reaching 1.9 times at the end of 2022 (compared to 2.3 times in 2021), the Abu Dhabi Ports Group maintains a strong financial position and a strong balance sheet, with large capital resources that are still available for growth.” With our recent announcement of mergers and acquisitions, we have updated our mid-term guidance (for the 5-year compound annual growth rate between 2022 and 2027) to 25-30% for revenue, and a rate ranging between 20-25% for EBITDA. and consumption.”
In turn, Ross Thompson, CEO of the Strategy and Growth Group – Abu Dhabi Ports Group, said: “Despite the adverse global geopolitical and economic conditions, the year 2022 was a remarkable year for the Abu Dhabi Ports Group, as we continued to build on the strong foundation of our business in Abu Dhabi by investing in the construction of assets and expand trade lines and our service offerings.At the regional level, the expansion of the maritime sector and the ports sector contributed to strengthening our assets and expanding our business network.Our ambitious strategy enabled us not only to grow locally and regionally, but also to expand our global reach with a primary focus on the regions countries and major trade lines.
Dina Omar / Ramy Samih
