AD Ports Group has released its financial results for the first half of the year ended 30 June 2021, reporting revenue of $499 million, up 21 percent year on year from $413 million in the first half (H1) of 2020.
The company achieved this result through organic growth, diversification into new businesses, new leases and partnerships. Its Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) rose 8 percent year-on-year to $210 million, up from $195 million in the first half of 2020, with growth across most of the business clusters.
The underlying business witnessed cargo volumes growing from 15 million metric tons in H1 2020 to 25 million metric tons in H1 2021, while container throughput grew from 1.57 million twenty-foot equivalent units (TEU) to 1.59 million TEUs during the same period. The industrial zones leased about 2.4 million square meters of land during H1 2021.
AD Ports Group successfully issued a $1 billion bond in May 2021, which was dual-listed on the London Stock Exchange (LSE) and the Abu Dhabi Securities Exchange (ADX), earning the lowest coupon rate for an Abu Dhabi government-related entity at the time.
“Our results demonstrate our resilience and the robust growth we have achieved across our business in line with our strategy. We are committed to driving development and diversification to Abu Dhabi and the UAE’s economy. 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.”
The formal inauguration of the new container terminal at Fujairah Port in June is one of the operational achievements to date in 2021.
Mr. Martin Aarup, Group CFO, AD Ports Group, said, “Our business model is based on long-term contracts with predictable cash flows, enabling us to plan and invest effectively. 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 $5.3 billion in 2020 to $6.1 billion in 2021 in line with our ongoing expansion program.”
The Group’s return on invested capital (ROIC) fell to 5.04 percent, due to increased invested capital across the portfolio, mainly in the ports and industrial zone operations, which are expected to generate incremental returns in the future.