TheUAE’s AD Ports Group saw its net income grow 18% y-o-y to AED 363 mn in 1Q 2023, according to the company’s earnings release. Group revenues surged by 73% y-o-y to AED 1.8 bn in the same period. The strong performance of its maritime, economic cities and freezones, and ports clusters — along with new acquisitions made in FY2022 and Q1 2023 — were the main drivers behind the surge in revenues, the company said.

Breakdown: The maritime cluster recorded a 259% y-o-y spike in revenues to AED 915 mn on the back of capacity increases, wider service offerings and boosted activity in new business segments, which include marine, feeder and offshore services. Its performance was also buoyed by new acquisitions made — Divetech, ASCL, Safeen Subsea and Transmar and TCI — accounting for 30% of maritime cluster revenues for the quarter. The economic cities and freezone cluster’s topline also grew 13% y-o-y to AED 429 mn, fueled by previously signed leases, higher utilities revenues and the Al Eskan Al Jamae (EAJ) merger. The ports cluster also recorded a 24% y-o-y spike in revenues to AED 314 mn in 1Q 2023 — driven by an 18% y-o-y in container volumes on the back of gradual recovery from covid-19 and supply chain disruptions on top of higher container utilization rates.

The logistics cluster went against the trend with revenues falling 3% y-o-y to AED 139 mn in 1Q 2023, due to the temporary maintenance shutdown of a “strategic customer’s” production plant, and the end of its covid-19 vaccine delivery business.

Looking ahead: The company plans on completing its 100% acquisition of logistics service provider Noatum by 2Q 2023, as well as finalizing the purchase of an 80% equity stake in Dubai-based container shipping company Global Feeder Shipping by 3Q 2023, increasing its global footprint in its logistics and freight forwarding business.

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