Kuwaiti logistics outfit Agility reported a 11.7% y-o-y drop in net income to KWD 14.2 mn in 2Q 2023 due to increased financing costs and higher debt incurred for expansion, according to a Dubai Financial Market disclosure (pdf). Revenue however more than doubled during the quarter, increasing 136.8% to KWD 327.8 mn. The company’s net debt rose to KWD 881.5 mn, an 89% y-o-y increase, according to its earnings release.

Agility reported a 2.3% y-o-y increase in net income to KWD 29.5 mn in 1H 2023, attributable to the increase in company’s operating income,in addition to its newly acquired subsidiaries — Menzies and HG storage — contributing to earnings for the first time, according to the bourse statement.

REMEMBER- Agility acquired UK-based aviation services firm John Menzies in August 2022 and merged it with its subsidiary, National Aviation Services, to form the world’s largest aviation services provider, Menzies Aviation. The company also acquired a 51% majority stake in HG Storage International in March 2022. Agility’s Emirati subsidiary, Tristar, also acquired HG Storage International, a joint venture between HNA Group and Glencore Group last August.

Breakdown: Agility’s aviation unit — Menzies Aviation — saw revenues soar 861.8% y-o-y to KD 162.2 mn during the quarter as the aviation industry continues to experience a post-pandemic rebound, marked by increased flight volumes.The company’s fuel logistics unit Tristar also saw revenues rise 76.2% y-o-y during the quarter, driven by strong performance of its maritime and fuel farms segments and its acquisition of HG Storage International.

Agility’s other controlled businesses achieved a 9% y-o-y rise in revenue to KWD 82.1 mn: Notable contributors included Agility Logistics Parks (ALP), which reported 7.8% y-o-y revenue growth, although it faces challenges related to land disputes with the Kuwaiti government. United Projects for Aviation Services Company (UPAC) saw a 1.2% y-o-y revenue increase during the quarter, while Global Clearinghouse Systems (GCS), Agility’s customs-modernization and ports operation unit, achieved 6.3% y-o-y revenue growth.

OTHER EARNINGS NEWS-

The Bahrain Ship Repairing and Engineering Company recorded a 287.1% y-o-y surge in net income to BD 760.5k in 2Q 2023,according to its latest financials (pdf). The company’s total revenues during the period also saw a 43.1% y-o-y bump to BD 2.2 mn. Net income in 1H 2023 jumped 123.5% y-o-y to BD 1.3 mn, while revenues increased 29.24% y-o-y to BD 4.2 mn.

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