Abu Dhabi Ports Company (ADPORTS) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue more than doubled YoY to AED 4.18 billion, driven by organic growth in Ports, Logistics, and Digital clusters, and major acquisitions including Noatum and GFS.

• EBITDA surged 56% YoY to AED 1.07 billion, with total net profit up 42% YoY to AED 439 million; net profit attributable to owners rose 16% YoY to AED 333 million.

• H1 2024 revenue reached AED 8.07 billion (+108% YoY), with EBITDA at AED 2.11 billion (+52% YoY) and net profit at AED 839 million (+25% YoY).

• Growth was supported by both organic expansion and strategic international acquisitions, with a focus on value-enhancing internationalisation.

Financial highlights

• Q2 2024 EBITDA margin was 25.6%, down from 33.3% in Q2 2023 due to revenue mix evolution.

• Reported EPS for Q2 2024 was AED 0.07, up 16% YoY.

• Total assets grew 24% YoY to AED 61.4 billion; total equity increased 21% YoY to AED 27.2 billion.

• Net debt/EBITDA ratio remained stable at 3.6x.

• Operating cash flow in Q2 2024 was AED 591 million; free cash flow remained negative due to heavy CapEx.

Outlook and guidance

• Industry-wide disruptions and Red Sea geopolitical tensions are expected to continue impacting global supply chains through at least end-2024.

• Despite macroeconomic uncertainty and new container ship deliveries, supply chain disruptions are expected to support demand and rates in H2 2024.

• The group maintains organic CapEx guidance of AED 12-15 billion over 2024-2028 and AED 4-4.5 billion annually.