AD Ports Group sees revenue surge of 21% in H1 2021
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AD Ports sees revenue surge of 21% in H1 2021

18 Oct 2021 (Last Updated October 18th, 2021 15:22)

The company’s EBITDA grew 8% to $210m (AED770m) in H1 2021.

AD Ports sees revenue surge of 21% in H1 2021
Cargo volumes rose to 25 million metric tonnes in H1 2021 from 15 million metric tonnes in H1 2020. Credit: CHUTTERSNAP / Unsplash.

Abu Dhabi Ports (AD Ports) Group has reported a 21% year-on-year increase in revenue in the first half of this year, benefitting from diversification into new businesses and organic growth.

The company’s revenue increased to $499m (AED1.83bn) in H1 2021 compared to $413m (AED1.52bn) in H1 2020.

Other factors contributing to the revenue growth were new leases and partnerships.

The company’s EBITDA in the first six months of 2021 stood at $210m (AED770m), up 8% from $195m (AED714m) in the same period a year before.

Cargo volumes rose to 25 million metric tonnes from 15 million metric tonnes over the period, while container throughput increased from 1.57 million twenty-foot equivalent units (TEU) to 1.59 million TEUs.

During the six-month period that ended on 30 June, the company’s industrial zones leased nearly 2.4 million square metres of land.

AD Ports Group CEO Captain Mohamed Juma Al Shamsi said: “Our results demonstrate our resilience and the robust growth we have achieved across our business in line with our strategy.

“Our financial performance is underpinned by continued expansions and increased activity, with key partnerships and joint ventures being established that are expected to deliver reliable returns in the future.”

AD Ports Group chief financial officer Martin Aarup said: “Coming out of the peak of the Covid-19 pandemic, we are focusing on delivering solid returns and managing our capital effectively. Our invested capital increased from $5.3bn (AED19.4bn) in 2020 to $6.1bn (AED 22.4bn) in 2021 in line with our ongoing expansion programme.”

Furthermore, the company recorded a 5.04% drop in return on invested capital (ROIC).

This was driven by an increase in invested capital across the portfolio, particularly in the ports and industrial zone businesses.

Last month, AD Ports reached a heads of terms agreement with the Aqaba Development Corporation for the development of a cruise terminal at Marsa Zayed in Aqaba, Jordan.