AD Ports Group Achieves Net Profit Of AED 1.78 Billion For Financial Year 2024

AD Ports Group has shared its preliminary unaudited financial results for the fourth quarter and full year ending 31st December 2024. The company experienced robust organic growth both operationally and financially, bolstered by inorganic growth from Noatum and GFS. The balance sheet was strengthened with reduced leverage and improved liquidity, resulting in positive Free Cash Flow to the Firm (FCFF) for two consecutive quarters in Q3 and Q4 of 2024.

Revenue saw a remarkable increase of 48% year-on-year, reaching AED17.29 billion. This growth was driven by mergers and acquisitions, alongside healthy double-digit organic growth across the Group's five business clusters. EBITDA also showed significant improvement, growing by 69% year-on-year to AED4.51 billion, with an EBITDA margin of 26.1%, up from 22.8% in 2023.

The Maritime & Shipping, Ports, and Logistics Clusters were key contributors to this strong operating performance. Profit Before Tax and Minorities rose by 45% year-on-year to AED2.04 billion in 2024, while the Group's Total Net Profit increased by 31% year-on-year to AED1.78 billion, resulting in a Net Profit margin of 10.3%. Despite the introduction of a corporate income tax of 9% in the UAE in 2024, AD Ports Group maintained strong bottom-line performance.

The Net Profit Attributable to Owners grew by 24% year-on-year to AED1.33 billion, driven by robust operating performance. Total Assets increased by 15% year-on-year to AED63.70 billion in 2024, while Total Equity rose by the same percentage to AED27.83 billion.

Significant growth in operating profits combined with stable debt levels led to a reduction in the Net Debt/EBITDA ratio to 3.3x as of December 2024, down from 4.4x in the previous year. The Group enhanced its liquidity position with a cash and equivalents balance of AED2.83 billion at the end of 2024, supported by earnings growth and additional liquidity through refinancing and upsizing bank facilities.

Captain Mohamed Juma Al Shamisi, Managing Director and Group CEO, stated: "2024 marked another year of record revenue and earnings with the Group delivering on its primary mission to enable trade." He highlighted how their strategy turned geopolitical uncertainties into record revenue and profit while integrating recent acquisitions for greater efficiency.

Global Expansion Efforts

The Group expanded its reach to over 50 countries across five continents while continuing significant investments in core infrastructure within Abu Dhabi. This expansion aligns with the vision of UAE's leadership for economic diversification and sustainable development.

The company's efforts have positioned Abu Dhabi at the forefront of global trade while advancing UAE's economic diversification goals towards a green economy.

With inputs from WAM