AD Ports Group Delivers Record Revenue of AED 4.66 billion and Total Net Profit of AED 445 million in Q3 2024; Turns Free Cash Flow Positive for the Quarter
- For the first time since listing, AD Ports Group turned free cash flow positive on a quarterly basis amidst continued EBITDA growth acceleration, higher cash conversion, and lower CapEx spend
- Double-digit LFL revenue and EBITDA growth for Ports, EC&FZ, Maritime & Shipping, and Logistics
- Strong operational performance across the boar
Abu Dhabi, UAE – 12 November 2024: AD Ports Group (ADX: ADPORTS), an enabler of integrated trade, transport and logistics solutions, today reported record levels of revenue and profit in Q3 2024 of AED 4.66 billion and AED 445 million, respectively, driven by strong growth across its core businesses.
Condensed Consolidated Balance Sheet & Cashflow Statement
AED m |
Q3 2023 |
Q2 2024 |
Q3 2024 |
YoY (%) |
9M 2023 |
9M 2024 |
YoY (%) |
Total Assets |
52,202 |
61,407 |
63,725 |
22% |
52,202 |
63,725 |
22% |
Total Liabilities |
28,967 |
34,205 |
35,715 |
23% |
28,967 |
35,715 |
23% |
Total Equity |
23,235 |
27,201 |
28,011 |
21% |
23,235 |
28,011 |
21% |
Net Debt 3) |
11,393 |
15,273 |
15,436 |
4,043 |
11,393 |
15,436 |
4,043 |
Net Debt / EBITDA (x) 3) |
4.0 |
3.6 |
3.5 |
-0.5 |
4.0 |
3.5 |
-0.5 |
RoACE (%) 4) |
6.5% |
6.6% |
6.9% |
+0.4% |
6.5% |
6.9% |
+0.4% |
|
|
|
|
|
|
|
|
Cash Flow from Operations |
(579) |
591 |
1,199 |
- |
263 |
2,571 |
876% |
CapEx |
(800) |
(1,176) |
(808) |
1% |
(3,652) |
(3,255) |
-11% |
Cash Flow from Investments |
(822) |
(1,310) |
(892) |
8% |
(5,316) |
(4,992) |
-6% |
Free Cash Flow (FCFF) |
(1,401) |
(719) |
307 |
- |
(5,053) |
(2,421) |
-52% |
illustrate once again the robust underlying health of our core businesses and the value-enhancing benefits of AD Ports Group’s ‘intelligent’ internationalisation strategy, which under the wise guidance of our leadership in the UAE is driving a prudent, selective global expansion coupled with an emphasis on sustainability. As 2024 comes to a close, there is reason for optimism. While geopolitical disruptions continue to affect visibility, seaborne trade volumes are still expected to grow 2.2% this year, and by 2.0% in 2025, according to Clarkson Research. The global economic situation has developed slightly better than expected this year, and the regional macro environment remains solid, supporting demand and rates for AD Ports Group.”
Martin Aarup, Group Chief Financial Officer, commented
“Our strong Q3 2024 financial results, in which the Group turned free cash flow positive for the first time on a quarterly basis, provide further corroboration of the accretive growth benefits of our synergistic five-pillar business portfolio, which generated strong growth across the board. The Group recorded a record quarterly EBITDA of AED 1.21 billion in Q3 2024, up 60% year-on-year, and 63% on a like-for-like basis. Our demonstrated restraint on CapEx in Q3 2024, and our near 100% cash conversion rate, are strengths that will continue to drive our profitable growth despite prevailing macroeconomic and geopolitical turbulence.”
Container Shipping Market Update and Outlook
- The industry-wide disruptions since December 2023, forcing vessels on the main East-West shipping lane to divert and take longer routes around the Cape of Good Hope, are likely to persist in the short-term.
- Geopolitical tensions in the Middle East, which arguably have been deteriorating since the beginning of the year, have led to continued attacks on ships in the Red Sea / Gulf of Aden, which in turn have resulted in continued global supply chain disruptions.
- Visibility on a normalisation of the situation is still poor.
- Although we are seeing more operators returning to the Red Sea, the resumption of full-scale operations transiting through the Suez Canal is not yet on the horizon. Shipping giants Maersk, Hapag-Lloyd and COSCO have all recently confirmed they will continue to sail around the Cape of Good Hope up until the end of 2024 and into 2025.
- Rates softened in September and October but the following upcoming events could confirm the renewed recent strength: 1) Trump’s win of the US presidential election is likely to lead to US tariff hikes triggering cargo front-loading; 2) re-stocking ahead of next year’s Lunar New Year break, which will start 11 days earlier at the end of January; and 3) fears of a potential re-emergence of US East Coast port strike (mid-Jan 2025), with negotiations on new labour contracts starting later this month. The global economic situation has also been slightly better than expected so far this year and regional macro remains solid supporting demand and rates for AD Ports Group.
- Despite newbuild container ship deliveries being in line with the expected 2.9 million TEUs for this year (+5.7% in global containership fleet during H1 2024) the Red Sea crisis has seen all the new ships being fully employed - vessels rerouting to avoid the Red Sea is estimated to require 10% to 20% additional industry capacity. Fleet renewal is also a way for shipping companies to keep supply-demand dynamics in check.
Financial Performance - AED m |
Q3 2023 |
Q2 2024 |
Q3 2024 |
YoY (%) |
9M 2023 |
9M 2024 |
YoY (%) |
Revenue |
442 |
471 |
512 |
16% |
1,312 |
1,444 |
10% |
EBITDA |
278 |
257 |
304 |
10% |
869 |
866 |
0% |
EBITDA Margin (%) |
63% |
55% |
59% |
- 4% |
66% |
60% |
-6% |
Operational KPIs |
|||||||
Land Leases (sq km) |
66.5 |
69.3 |
70.0 |
5% |
66.5 |
70.0 |
5% |
Land Lease Net Additions (sq km) |
0.4 |
0.6 |
0.7 |
- |
2.0 |
2.7 |
- |
Warehouse Leases ('000 sqm) |
501 |
536 |
555 |
11% |
501 |
555 |
11% |
Warehouse Utilization (%) |
85% |
92% |
92% |
7% |
85% |
92% |
7% |
KEZAD Communities Leased Beds |
74,647 |
85,698 |
89,215 |
20% |
74,647 |
89,215 |
20% |
KEZAD Communities Bed Occupancy |
55% |
63% |
64% |
9% |
55% |
64% |
9% |
Gas Volumes (MMBTU m) |
5.1 |
6.7 |
5.2 |
2% |
14.9 |
16.8 |
13% |
Financial Performance - AED m |
Q3 2023 |
Q2 2024 |
Q3 2024 |
YoY% |
LFL% |
9M 2023 |
9M 2024 |
YoY% |
Revenue |
487 |
563 |
603 |
24% |
18% |
1,108 |
1,731 |
56% |
EBITDA |
270 |
235 |
287 |
6% |
3% |
608 |
771 |
27% |
EBITDA Margin (%) |
55% |
42% |
48% |
-7% |
- |
55% |
45% |
-10% |
Operational KPIs |
||||||||
General Cargo Volumes (m tons) |
10.8 |
12.8 |
13.6 |
26% |
5% |
29.3 |
39.8 |
36% |
Container Volumes (m TEUs) |
1.4 |
1.6 |
1.7 |
24% |
24% |
3.7 |
4.7 |
28% |
Container Capacity Utilization (%) |
56% |
62% |
68% |
12% |
- |
55% |
63% |
8% |
Ro-Ro Volumes ('000) |
312 |
384 |
318 |
2% |
2% |
432 |
1,009 |
133% |
Cruise Passengers ('000) |
1.8 |
17.7 |
0.0 |
-98% |
-98% |
482.4 |
397.6 |
-18% |
- Revenue in the Ports Cluster grew 24% YoY in Q3 2024 and 18% YoY on a LFL basis adjusted for the contribution from Karachi Gateway Multipurpose Terminal (KGTML), which has been consolidated since 1st February 2024.
- The strong revenue growth for the cluster was led by strong performance in General Cargo (+42% YoY, driven by revenue mix in the UAE and KGTML in Pakistan), Container Concession fees in the UAE (+49% YoY, including fixed concession fees from CMA Terminals Khalifa Port from July), and international container operations (Spain and Pakistan).
- 22% YoY growth in container throughout at the flagship Khalifa Port in the UAE, which accounted for 87% of total container throughout for the quarter, translating into an all-time high utilization of 76%. Overall container capacity utilization reached 68% for the quarter vs. 56% in Q3 2023.
- The current Red Sea crisis continued to support the quarterly Ro-Ro volumes in Khalifa Port (+53% YoY) while subdued demand in Europe and EV-related trade tensions with China has led to some softening in Ro-Ro volumes in Spain (-11% YoY). Overall, Ro-Ro volumes registered a steady 2% YoY growth for the quarter.
- With strong top line performance and the increasing contribution of container concession fees, EBITDA margin trended back close to the 50% mark.
Financial Performance - AED m |
Q3 2023 |
Q2 2024 |
Q3 2024 |
YoY (%) |
LFL (%) |
9M 2023 |
9M 2024 |
YoY (%) |
Revenue |
853 |
1,080 |
1,265 |
48% |
42% |
1,119 |
3,426 |
206% |
EBITDA |
66 |
96 |
92 |
38% |
32% |
119 |
281 |
135% |
EBITDA Margin (%) |
8% |
9% |
7% |
-1% |
- |
11% |
8% |
-3% |
Operational KPIs |
||||||||
Polymer Volumes (m Tons) |
1.15 |
1.20 |
1.16 |
1% |
- |
3.06 |
3.49 |
14% |
Air Freight Volumes (Tons) |
8,103 |
8,605 |
9,212 |
14% |
- |
22,969 |
25,565 |
11% |
Ocean Freight Vol. ('000 TEUs) |
97 |
98 |
99 |
1% |
- |
299 |
294 |
-2% |
Financial Performance - AED m |
Q3 2023 |
Q2 2024 |
Q3 2024 |
YoY (%) |
LFL (%) |
9M 2023 |
9M 2024 |
YoY (%) |
Revenue |
100 |
154 |
162 |
62% |
44% |
317 |
467 |
47% |
EBITDA |
47 |
50 |
48 |
3% |
-5% |
173 |
192 |
11% |
EBITDA Margin (%) |
47% |
32% |
30% |
-17% |
- |
54% |
41% |
-13% |
Operational KPIs |
||||||||
FLS Transactions (Nos) |
39,699 |
42,182 |
42,397 |
7% |
- |
130,376 |
125,976 |
-3% |
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