Reflecting the strong performance of its maritime and ports businesses, as well as a host of acquisitions during the year, AD Ports Group has announced a stellar set of results for the year 2022. Overall revenues jumped 41% year-on-year to AED 5.5 billion, while net profits soared 53% to AED 1.3 billion.
Operationally the Group’s ports sector achieved rapid cargo throughput growth rates more or less across the board. Container throughput grew to 4.33 million TEU in 2022, up 28% compared with 2021 and utilisation of the two existing container terminals continued to improve, rising to 51% in 2022 against 40% in 2021. On a like-for-like basis, general cargo volumes increased by 3% to reach 31.7 million tonnes in 2022, compared with 44.6 million tonnes in 2021. Ro-ro and cruise passenger volumes also rebounded strongly post-Covid.
In the maritime sector, key operational indicators – including vessel fleet size, port calls, container feeder and transhipment volumes and marine services activities – all recorded strong growth.
Overall revenue for the Ports Cluster division grew by 7% year-on-year to AED 1,135 million. Double-digit growth in concession fees and leases as well as the strong rebound in the ro-ro and cruise businesses more than offset a decline in general cargo revenues On a like-for-like basis, ports revenue grew by 21% year-on-year, when adjusted for both a one-off sand supply project and the acquisition of the Egyptian business, TCI.
The transformative impact of the company’s acquisition strategy can be seen most clearly in the exponential increase in the contribution of the Maritime Cluster sector to the Group’s revenue. Now the largest revenue contributor with 37% of total revenue the maritime business revenue growth of 256% year-on-year in 2022, to AED 2,161 million, was driven by a wider service offering and increased activity in new business segments, including feedering, chartering, transshipment and offshore services. The Group’s Maritime Cluster division added four new companies to its portfolio in 2022, Divetech Marine Engineering Services, Alligator Shipping Container Line, Transmar and Safeen Surveys and Subsea Services, laying a platform for further growth in 2023.
In one slight setback AD Ports Group’s logistics business registered a 12% year-on-year revenue decline to AED 532 million in 2022. This was mainly due to the reduction in the vaccine business with the easing of the pandemic, the revision of a contract with a key client from a short-term asset heavy to a longer-term asset light model, as well as temporary lower volumes due to the non-availability of empty containers for exports.
Captain Mohamed Juma Al Shamisi, Managing Director and Group CEO, AD Ports Group, commented: “2022 was an exceptional year for AD Ports Group, with strong results reflecting the effectiveness of our ambitious growth strategy, and the focus on delivering on our promises to our shareholders and stakeholders, thanks to the continuous support of our wise leadership. For 2023, we will be focusing on maximising returns and generating portfolio synergies, while providing our customers with superior end to end supply chain outcomes.”