ABU DHABI, 1st April, 2024 (WAM) — AD Ports Group, a leading facilitator of global trade, logistics, and industry, today issued its 2023 Annual Report.
The report highlights significant achievements for the Group that expanded its international footprint significantly in 2023, particularly following the integration of Noatum, a global logistics platform with a presence in 27 countries and a leader in automotive logistics services in Europe. Moreover, a series of ports, terminals, maritime and shipping agreements in Jordan, Egypt, Pakistan, Republic of Congo, Kazakhstan and Uzbekistan, supported doubling the Group’s revenue and extended its global reach to 46 countries.
AD Ports Group’s vertically integrated businesses Clusters, including Ports, Economic Cities and Free Zones, Maritime and Shipping, Logistics, and Digital, have enabled the Group to become one of the fastest-growing enablers of trade, industry and logistics, whose integrated synergistic businesses are dedicated to leading the future of global trade with innovative, end-to-end supply chain solutions, world-class infrastructure, and smart new routes for a changing world.
Commenting on the report, Falah Al Ahbabi, Chairman of AD Ports Group, said, “Through bold, value enhancing acquisitions, and strategic expansions in the Arabian Gulf, Red Sea, Caspian Sea, Africa, and around the world, AD Ports Group in 2023 transformed into a world-class facilitator of global trade and logistics, in line with the economic diversification objectives set by the UAE’s visionary leadership. In a year of rising global market uncertainty, the Group’s record revenue and profits underlined, once again, its resilience and core strength, as well as its value to shareholders.”
Capt. Mohamed Juma Al Shamisi, Managing Director and Group CEO, AD Ports Group, said, “2023 was one of the most dynamic periods of growth in the history of AD Ports Group. We expanded our maritime, shipping and ports footprint into Jordan, Egypt, Pakistan, the Republic of the Congo, Uzbekistan, and Kazakhstan, and in addition we transformed our logistics business by acquiring Noatum, an integrated provider active in 27 countries and a leading in the automotive logistics sector in Europe.”
He added, “Moving forward into 2024, we plan to continue in delivering value to our customers, shareholders and the communities we serve. With the guidance of the UAE’s wise leadership, our strategic focus will be to leverage our cutting-edge infrastructure and advanced fleet, for further dynamic growth both regionally and internationally.”
Strategic Direction
The Group’s growth strategy is underscored by a prudent and risk-aware approach, leveraging its stable revenue streams and favourable macroeconomic conditions to drive expansion. This multifaceted strategy combines the operational enhancement of current assets with strategic mergers and acquisitions both within the domestic market and internationally.
Central to this strategy is the Group’s aim to strengthen its presence in Abu Dhabi and the UAE, whilst pursuing targeted growth in the regional market, and establish a significant global footprint in the logistics and trade services sector.
The Group’s focused inorganic growth strategy focuses on strategic investments to proactively pursue opportunistic complementary, synergetic, and value-added investments in logistics, maritime and shipping, and port assets. This will drive enhanced customer relationships, expand the Group’s logistics network, and bolster its Abu Dhabi-based operations, ensuring these opportunities align with its criteria of scale, management quality, and financial attractiveness.
With this strategy supported by robust financial foundation and a portfolio of high-quality assets, the Group is well-positioned for resilient growth across varying economic and industry cycles.
Market Overview
The global shipping industry experienced a year of mixed fortunes in 2023, with a return to normalised shipping rates across various segments, despite uneven supply-demand dynamics. While the tanker, offshore, bulk, and Ro-Ro segments enjoyed a positive year, bolstered by China’s reopening and a 3 percent increase in global trade volumes, the container market faced challenges, with rates softening due to a gradual regularisation of supply chains post-COVID-19 and an increase in vessel fleet supply.
Despite these disparities, the industry on average remained 33 percent above its 10-year trend, with energy shipping and the offshore segment experiencing strong performance – Ro-Ro rates hit all-time highs and bulkers recovered in the fourth quarter. The container segment, however, saw better performance in trade lanes related to AD Ports Group, while main East-West routes were deeply affected.
Financial highlights for 2023 included revenue growth of 112 percent year-on-year to AED11.7 billion. Results for the 12 months ending 31st December 2023 reported strong operational and financial performance with EBITDA increasing 23 percent YoY to AED2.67 billion and total Net Profit reaching AED1.4 billion in 2023, up 6 percent YoY.