Abu Dhabi Ports Company (ADPORTS) Q3 2024 earnings summary

Executive summary

• Achieved first positive free cash flow since listing, driven by strong EBITDA growth, improved cash conversion, and disciplined CapEx.

• Q3 2024 saw record financial performance with revenue up 60% year-over-year to AED 4.65 billion and EBITDA up 124% to AED 1.21 billion.

• Net profit increased 11% year-over-year to AED 445 million in Q3 2024, with 40% of 9M 2024 revenue from long-term contracts.

• Strengthened balance sheet, improved liquidity, and lower net leverage following debt refinancing and rate cuts.

• Resilient business model with diversified, highly visible revenue streams and international expansion.

Financial highlights

• 9M 2024 revenue rose 57% year-over-year to AED 12.73 billion; EBITDA up 55% to AED 3.32 billion; net profit up 19% to AED 1.29 billion.

• Q3 2024 revenue reached AED 4.66 billion (+60% YoY), EBITDA AED 1.21 billion (+124% YoY), and net profit AED 445 million (+11% YoY).

• EBITDA margin improved by 810 bps YoY to 26% in Q3 2024; medium-term margin guidance of 25-30% reiterated.

• Free cash flow turned positive in Q3 2024, ahead of guidance, with strong cash conversion and lower CapEx.

• Total assets grew to AED 63.73 billion from AED 55.61 billion at year-end 2023.

Outlook and guidance

• Medium-term guidance unchanged: revenue CAGR of 15-20% and EBITDA CAGR of 20-25% for FY 2023-28.

• CapEx for 2024-28 expected at AED 12-15 billion, front-loaded in 2024-25, focused on infrastructure and international expansion.

• Red Sea disruptions expected to persist into 2025, supporting current business momentum.

• Q4 will see a one-off positive P&L effect from NMDC dividend of AED 195 million.

• Management confirmed sufficient resources for continued operations and adopted a going concern basis.