AD Ports Posts Record Quarterly Profit of Dh975 Million Despite Hormuz Disruption

Revenue for the three months to September rose 48 per cent to Dh7.99 billion. Earnings before interest, tax, depreciation and amortisation (EBITDA) climbed 63 per cent to Dh1.97 billion, lifting the margin to 24.6 per cent from 22.3 per cent a year earlier. Profit attributable to owners of the company rose 73 per cent to Dh767 million, or Dh0.16 a share.

The figures show how the Abu Dhabi group has leaned on its fleet, its logistics arm and alternative routes while its home ports run far below capacity. Group chief executive Dr Afif Saif Al Yafei described the period as "one of the most challenging" in the company's 20-year history and credited its operational resilience and end-to-end services for customers.

The damage at UAE terminals shows up clearly in the volume data. Container throughput in the UAE fell 57 per cent year on year to 751,000 twenty-foot equivalent units, although that was more than 30 per cent higher than in the second quarter. Bulk and general cargo dropped 54 per cent to 4.5 million tonnes, up 48 per cent on the previous quarter. Utilisation of UAE container capacity was 29 per cent, up from 22 per cent in the second quarter, compared with 73 per cent at the group's international terminals.

The company said it had consolidated alternative multimodal routes across the UAE under the National Programme to Strengthen Supply Chain Resilience, limiting the impact on customers and the wider GCC economy. Since March it has rerouted cargo and feeder shipping services to Fujairah Terminals and Khor Fakkan Port on the Gulf of Oman, outside the strait, and added land and air bridges as well as extra warehousing and storage.

Shipping Carries the Quarter

The maritime and shipping cluster produced 58 per cent of group revenue. Its sales rose 56 per cent to Dh4.74 billion and its EBITDA more than doubled to Dh1.23 billion, driven by added capacity and higher rates in container feeder, roll-on/roll-off and tanker shipping. The bulk, multipurpose and Ro-Ro fleet grew to 76 vessels from 48 a year earlier.

Logistics revenue increased 76 per cent to Dh1.96 billion, or 24 per cent of the group total, and EBITDA rose 246 per cent to Dh116 million, more than offsetting a 36 per cent annual fall in UAE polymer volumes. The ports cluster grew revenue 12 per cent to Dh798 million, with EBITDA up 8 per cent to Dh388 million, a 48.7 per cent margin. Economic cities and free zones revenue rose 15 per cent to Dh690 million and EBITDA 6 per cent to Dh398 million. The group added 1.2 square kilometres of net new industrial land leases at Kezad Abu Dhabi in the quarter, taking this year's net additions to 3.2 square kilometres.

Cash and Leverage

Cash flow from operations reached Dh2.94 billion, roughly three times the year-earlier level, a cash conversion rate of 150 per cent. Free cash flow to the firm was negative Dh691 million because the group funded its acquisition of Corredor Logística e Infraestrutura, an independent agri-bulk port terminal operator in Brazil; excluding that deal it would have been a positive Dh1.17 billion. Net leverage fell to 3.5 times, from 3.7 times in the second quarter and 4.4 times a year earlier.

For the first nine months of the year, revenue rose 41 per cent to Dh20.83 billion and total net profit increased 64 per cent to Dh2.46 billion.