AD Ports Group, an enabler of integrated trade, transport and logistics solutions, has reported record levels of revenue and profit in Q3 2024 of US$1.26 billion and US$124 million, respectively, driven by strong growth across its core businesses.
Condensed Consolidated Profit & Loss
Revenue was US$1.26 billion in Q3 2024, +10% Year-on-Year (YoY), +60% normalised for vessel trading activities booked in Q3 2023. On a Like-For-Like (LFL) basis, adjusted for M&A effect & vessel trading activities, Q3 2024 revenue grew 28% YoY.
The all-time high quarterly revenue was driven by a strong performance across the board, from all Clusters: +24% YoY for Ports, +96% YoY for Maritime & Shipping (normalised for the vessel trading activities in Q3 2024), +16% YoY for Economic Cities and Free Zones, +48% YoY for Logistics, and +62% YoY for Digital.
EBITDA margin improved from 17.9% in Q3 2023 to 26.0% in Q3 2024 (and vs. 25.6% in Q2 2024).
In Q3 2024, Cash Flow from Operations more than doubled Quarter-on-Quarter (QoQ) to US$326 million driven by strong EBITDA performance and a higher cash conversion ratio of close to 100%.
Captain Mohamed Juma Al Shamisi, Managing Director and Group CEO, said: “Our strong third-quarter results, which set records for quarterly revenue and profitability, 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.”
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