AD Ports Group reports 41% revenue growth in 2022

Published February 15th, 2023 - 02:52 GMT
Abu Dhabi Port
A picture shows containers at the new Khalifa Port in Abu Dhabi on September 1, 2012. Oil-rich Abu Dhabi began commercial operations at its new Khalifa Port which cost so far $7.2 billion to take over from its 40-year-old Mina Zayed Port as a container terminal. AFP PHOTO/KARIM SAHIB (Photo by KARIM SAHIB / AFP)

ALBAWABA - The Abu Dhabi Ports Group reported Wednesday a revenue  growth of 41 percent year-on-year to AED5.5 billion ($1.5 billion).

The figure came in the AD Ports Group financial report for 2022.

 The Group's Chief Strategy and Growth Officer Ross Thompson said lauded 2022 as a "banner year for AD Ports Group."

"Despite the global geopolitical and economic headwinds, we continued to build on our foundation in Abu Dhabi by investing in creating assets, routes and expanding our service offerings," Thompson said.

"At the regional level, our ports and maritime expansion has been asset- and network-led," he said. "Our ambitious strategy, not only positioned us for local and regional growth, but also expanded our reach globally with a key focus on our key trading regions, countries, and routes."

The Emirates News Agency WAM said the Group’s strong results were "driven by the performance of its Maritime and Ports Clusters as well as acquisitions and new partnerships."

Pre-tax earnings jumped by 37 percent to AED2.2 billion ($599 million) in 2022, while net profit soared by 53 percent to AED1.3 billion ($354 million), according to the Group.

It said a key highlight of the sound financial outcome was the "acquisition announcement of an 80 percent equity stake in Dubai-based Global Feeder Shipping (GFS), a global container shipping company, for an Enterprise Value of AED2.9 billion ($800 million)."

GFS is the third largest feeder shipping business globally. 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 acquired a 70 percent stake in International Associated Cargo Carrier (IACC) in Egypt for AED514 million ($140 million).

In total, the Group signed seven merger and acquisition transactions in 2022, which totaled AED5.9 billion ($1.6 billion), with GFS and Noatum. A deal with Eskan Al Jamae is yet to be concluded.

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