AD Ports Group announces record financial results for 2022 with 41% revenue growth

AD Ports Group, a global premier facilitator of logistics, industry and trade, on Wednesday announced its financial results for the 12 months ended December 31, 2022, reporting strong operational and financial performance, with revenue growth of 41% year-on-year to AED 5.5 billion.

The Group’s strong results were driven by the performance of its Maritime and Ports Clusters as well as acquisitions and new partnerships, and the revenue growth represents an increase of 23% year-on-year to AED 4.8 billion organically.

Among the key highlights, the Group’s EBITDA increased 37% year-on-year (YoY) to AED 2.2 billion in 2022 with an EBITDA margin of 39.8%; total net profit soared by 53% YoY to reach AED 1.3 billion in 2022; and earnings per share (EPS) increased to AED 0.26 for the full year in 2022, up from AED 0.22 in 2021.

The Group also reported an operating cash flow of AED 1.6 billion in 2022, implying a cash conversion of 74%, the Group said in a statement.

Operationally, in the Ports Cluster, container throughput grew to 4.33 million TEUs (twenty-foot equivalent units) in 2022, an increase of 28% year-on-year, as utilisation of the two existing container terminals continued to improve.

On a like-for-like (LFL) basis, general cargo volumes increased by 3% to reach 31.7 million tonnes in 2022, compared with 44.6 million tonnes in 2021, which included a one-off sand supply project of 14.7 million tonnes.

Ro-Ro and Cruise Passenger volumes also rebounded strongly on the back of the abated effect of the COVID-19 pandemic.

In the Maritime Cluster, all operational indicators – vessel fleet, port calls, container feedering volumes, transhipment volumes, marine services activities – recorded strong growth.

In the Logistics Cluster, the key highlight in Q4 2022 was the acquisition announcement of 100% ownership of Noatum, a logistics services provider with presence in 26 countries across five continents, for an Enterprise Value of EUR 660 million. The value and earnings accretive acquisition, will, upon completion, significantly broaden AD Ports Group’s global footprint and position it among the leading logistics and freight forwarding companies in the world, the Group said.

Another key highlight in Q4 2022 was the acquisition announcement of an 80% equity stake in Dubai-based Global Feeder Shipping (GFS), a global container shipping company, for an Enterprise Value of AED 2.9 billion (USD 800 million). GFS is the third largest feeder shipping business globally, operating a comprehensive service network of 20 services across the GCC, Red Sea, Indian Subcontinent and Southeast Asia.

Upon completion, the acquisition, is set to position AD Ports Group as the largest pure feeder operator in the region and the third largest globally by container capacity, which will be close to 100,000 TEUs.

In September 2022, AD Ports Group also completed the acquisition of a 70% stake in International Associated Cargo Carrier (IACC) in Egypt, which fully owns Transmar and TCI, for an Enterprise Value of AED 514 million (USD 140 million).

In total, the Group inked seven M&A transactions in 2022 totalling AED 5.9 billion, with GFS, Noatum, and Eskan Al Jamae yet to be completed.

In terms of financial performance, EC&FZ Cluster recorded revenue increase of 6% year-on-year to reach AED 1,658 million in 2022, benefitting mainly from previously signed land leases, higher utilities revenues, and strong momentum in warehouses revenues.

Overall revenue for the Ports Cluster grew by 7% year-on-year to AED 1,135 million, backed by a healthy product mix as well as revenues from the acquisition of TCI, one of the two entities under IACC, Egypt.

Captain Mohamed Juma Al Shamisi, Managing Director and Group CEO, AD Ports Group, said: “2022 was an exceptional year for AD Ports Group with strong results reflecting the effectiveness of our ambitious growth strategy, and the focus on delivering on our promises to our shareholders and stakeholders, thanks to the continuous support of our wise leadership.

“The Group’s remarkable financial and operational performance was driven by our Maritime and Ports Clusters’ results, coupled with strategic investments, new joint ventures, partnerships and acquisitions that enabled us to expand our geographic footprint, our services and offerings as well as enhance our position as a major player in global trade and logistics. For 2023, we will be focusing on maximising returns and generating portfolio synergies, while providing our customers with superior end to end supply chain outcomes.”

Martin Aarup, Group Chief Financial Officer, AD Ports Group, said: “We are pleased to have achieved an exceptional performance during 2022 by continuing to press ahead with our ambitious organic revenue-generating CapEx program of around AED 15 billion over the next five years, with spending of AED 1.4 billion in Q4 2022 and AED 5.6 billion for the full year in 2022, and by accelerating the pace of M&A transactions, with seven of them completed or announced last year.”