AD Ports Group publishes annual Report for 2023
ABU Dhabi (WAM) AD Ports Group, a leading facilitator of global trade, logistics and industry, today publishes its annual report for 2023.
The report highlights the significant achievements made by the group in significantly expanding its international presence in 2023, particularly following the integration of Noatum. Noatum is a global logistics platform with operations in 27 countries and a leader in automotive logistics services in Europe. In addition, a series of port, terminal, maritime and shipping agreements in Jordan, Egypt, Pakistan, Republic of Congo, Kazakhstan and Uzbekistan doubled the group’s revenue and expanded its global presence to 46 countries.
The AD Ports Group’s vertically integrated business cluster, comprising ports, economic cities and free zones, maritime transport, logistics and digitalisation, has made the Group one of the fastest growing trade, industrial and logistics enablers, Its integrated synergistic business is committed to leading the future of global trade through innovative end-to-end supply chain solutions, world-class infrastructure, and smart new routes adapted to an ever-changing world.
Commenting on the report, Falah Al Ahbabi, Chairman of AD Ports Group, said: “Through bold, value-adding acquisitions and strategic expansion across the Arabian Gulf, Red Sea, Caspian Sea, Africa and around the world, AD Ports Group’s 2023 transformation into a world-class global trade and logistics facilitator is in line with the economic diversification goals set by the UAE’s visionary leadership. In a year of heightened uncertainty in global markets, the Group’s record revenues and profits once again underline its resilience and core strengths, as well as its value to shareholders.”
AD Ports Group Managing Director and Group chief executive Officer Capt Mohamed Juma Al Shamisi said: “2023 is one of the most dynamic growth periods in AD Ports Group’s history. We expanded our Marine, shipping and ports business into Jordan, Egypt, Pakistan, Republic of Congo, Uzbekistan and Kazakhstan, in addition to transforming our logistics business with the acquisition of Noatum. Noatum is an integrated supplier active in 27 countries in the automotive logistics industry in Europe.”
He added: “Going into 2024, we plan to continue to deliver value to our customers, shareholders and the communities we serve. Guided by the wise leadership of the UAE, our strategic focus will be on leveraging our advanced infrastructure and advanced fleet to deliver further dynamic growth regionally and internationally.”
Strategic DIRECTION
The Group’s growth strategy emphasises prudence and risk awareness, leveraging its stable revenue streams and favourable macroeconomic conditions to drive expansion. This multifaceted strategy combines operational enhancement of current assets with strategic mergers and acquisitions in both the domestic and international markets.
Central to the strategy is the group’s aim to strengthen its presence in ABU Dhabi and the UAE, while pursuing targeted growth in regional markets and establishing a significant global footprint in logistics and trade services.
The Group’s endogenous growth strategy focuses on strategic investments, actively pursuing opportunistic complementary, synergistic and value-adding investments in logistics, Marine and port assets. This will drive the strengthening of customer relationships, the expansion of the group’s logistics network and the strengthening of its presence in ABU Dhabi, ensuring that these opportunities meet its criteria of scale, quality of management and financial attractiveness.
With the strong financial underpinnings of this strategy and the support of a portfolio of quality assets, the Group is well positioned to grow resilient through different economic and industry cycles.
Shipping Market OVERVIEW
The global shipping industry experienced a mixed year in 2023, with freight rates returning to normalisation across all segments despite unbalanced supply and demand dynamics. While the tanker, offshore, bulk and ro-ro markets had a positive year, driven by the reopening of China and a 3 percent increase in global trade volumes, the container market faced challenges, with weak freight rates due to the gradual normalization of supply chains. – Increased supply from COVID-19 and fleet.
Despite these differences, the sector remained 33 percent above the 10-year trend on average, with energy transport and offshore businesses performing strongly – with ro-ro rates hitting a record high and bulk carriers recovering in the fourth quarter. However, the container business performed better on the trade routes associated with the AD Ports Group, while the main east-west routes were severely affected.
Financial highlights for 2023 included a 112 per cent year-on-year increase in revenue to AED 11.7 billion. The results for the 12 months ended Dec 31, 2023 showed strong operating and financial results, with EBITDA up 23% year-on-year to AED 2.67 billion and total net profit up 6% year-on-year to AED 1.4 billion in 2023.
