September 27, 2022

Dubai Week

Complete Dubai News World

606 million dirhams, "Abu Dhabi Ports" profit in the first half, growth of 49%

606 million dirhams, “Abu Dhabi Ports” profit in the first half, growth of 49%

Abu Dhabi: “The Gulf”

Abu Dhabi Ports Group posted a net profit of 606 million dirhams in the first half, a 49% growth, with revenue up 25% to 2.28 billion dirhams.

The group reported a significant increase in its quarterly revenue of 35% year-on-year to reach 1.24 billion dirhams in the second quarter of 2022, recording record growth results in the first half of the year. The digital sector is underperforming.

The port sector’s earnings performance declined in the second quarter due to the negative impact resulting from the contract for the supply of crude sand for the March to October 2021 period. However, on a similar basis, the revenue of the port sector achieved growth. 20% on an annualized basis in the second quarter of 2022.

Contribution of Aramex

The group’s net profit growth rose 59% year-on-year to AED 300 million in the second quarter of 2022, despite increased depreciation expenses and higher financing costs from the ongoing investment programme. Provisions for expected credit losses.

Aramex’s 22.32% stake, transferred to Abu Dhabi Ports Group in January 2022, contributed AED 12 million to EBITDA and net profit in the second quarter of 2022 (AED 23 million in the first half of 2022).

For capital expenditure

The Group’s combined capital expenditure for the first half of 2022 was 2.6 billion dirhams for the fleet of ships) and ports sector (expansion of Khalifa Port connecting to the Etihad rail network), and the economic cities and free zones sector (establishing new warehouses, expanding the gas network and investing additional land in infrastructure projects). .

See also  75% of UAE companies increase hiring as epidemic recovery accelerates

Abu Dhabi Ports Group maintains a strong capital structure in addition to good cash flow and investment valuation to accommodate its future growth. The group’s total debt in the second quarter of 2022 in the form of 10-year bonds issued under the Euro Medium Term Bond Program (EMTN) in 2021 was about 3.6 billion dirhams, while cash reserves stood at 1.8 billion. dirhams, providing a net leverage of 0.9 times. The Group has a well-managed credit maturity history with adequate liquidity, and a $1 billion consolidated revolving credit facility set aside in 2021 with a consortium of local and international banks remains unutilized. The Group continues to pursue a strategy aimed at using bonds as the main means of long-term financing, while continuing to rely on the revolving credit facility as a reserve source of liquidity.

Captain Mohamed Juma Al Shamsi, Managing Director and Chief Executive Officer of Abu Dhabi Ports Group, said, “The Group’s business units were successful in overcoming the significant challenges faced by the supply chain last year. The areas it followed contributed to achieving concrete positive results.

He added: “The Group continued to invest heavily to ensure future growth and was keen to take advantage of the current good conditions in the Gulf region in general and the country in particular, as helped by a significant rise in oil prices. Accelerated economic growth in the country and supported the non-oil economy, allowing the group to be one of the main beneficiaries of Abu Dhabi’s industrial strategy, which aims to double the size of the manufacturing sector to reach 172 billion dirhams by 2031.”

See also  Cryptocurrencies lose a third of their value in May ... Market panics by Investing.com