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Agility profit up 10.6pc to 193m

KUWAIT, March 9, 2017

Agility, a leading global logistics provider, reported a net profit of KD59.1 million ($193.15 million) for 2016, an increase of 10.6 per cent over the same period in 2015.

Revenue for the year stood at KD1.234 billion and EBITDA KD115.2 million, the company said. The earnings per share was 51.3 fils.

For the fourth quarter 2016, Agility reported a net profit of KD15.7 million with an earnings-per-share of 13.6 fils, an increase of 9.7 per cent over the same period in 2015. EBITDA for the quarter stood at KD31.4 million, an increase of 18.4 per cent over last year.
 
In view of growing optimism and ongoing progress to date with respect to Agility’s 2020 EBITDA target of $800 million, the board of directors is proposing a three-pronged distribution recommendation to the Annual General Assembly of the shareholders:
• A cash dividends distribution of 15 per cent (15 fils per share);
• A bonus shares distribution of 10 per cent (10 shares for every 100 shares) for the fiscal year 2016; and
• A share buyback programme to increase Agility’s treasury share inventory up to 10 per cent of its total share capital, subject to and in compliance with the rules and the regulations set forth by the CMA and other relevant regulatory authorities.
 
“Agility continues to steadily improve its financial performance, with Agility GIL closing the year with an EBITDA improvement of 17pc and Agility’s Infrastructure group showing an EBITDA improvement of 30.1pc. Agility generates healthy cash flows, and remains on track to reach its goal of $800 million in EBITDA by 2020,” said Tarek Sultan, Agility CEO.

“To reach our target, we are focused on both continuously improving our underlying performance in GIL, while also investing for the future in our Infrastructure companies. Agility is growing its Infrastructure businesses: undertaking a number of major industrial real estate projects in the Middle East and Africa over the course of the next few years, expanding the shipping fleet of its Tristar business, and investing in the Reem mega-mall in Abu Dhabi. Agility’s balance sheet will move towards a net debt position as our Infrastructure companies fund their expansion plan,” he said.   
 
Agility Global Integrated Logistics (GIL) revenues decreased 7pc to KD928.4 million over the same period last year. However, GIL’s net revenues grew by 1pc on a constant currency basis.

“GIL continues to make progress. Profitability is increasing, with EBITDA margins improving from 2.7pc in 2015 to 3.5pc over the course of 2016. Volumes are growing: air freight tonnage grew by 9.8pc and TEUs grew by 9.3pc, with better margins in both air and ocean. Our contract logistics business, with more than 20 million square feet of warehousing space across the globe, also grew by 7.4pc this year,” said Sultan.

“That said, ongoing pressure on rates, and a Project Logistics business that is impacted by low oil prices and subsequent delays in capital spending, have challenged the top line,” he added.

GIL continues to focus on improving operational performance through technology-driven transformation; strengthening commercial performance through its tradelanes program, sales excellence, and suite of online solutions, and maintaining cost discipline. GIL is also building its leadership pipeline though talent development programs for executives, regional managers and branch managers.
 
Revenues for Agility’s infrastructure companies grew by 1.1pc on a reported basis (14.8pc on a constant currency basis). On the EBITDA level, this translates into a 30.1pc increase driven mainly by Agility Real Estate and Tristar.
Agility Real Estate continues to be the strongest contributor to Agility’s performance. In 2016, Agility Real Estate opened new distribution centres for Dammam, Saudi Arabia; and opened the first Agility Distribution Park in Ghana, which is fully leased.

Tristar is a fully integrated liquid logistics company serving the downstream oil and gas industry with solutions like surface transport, ocean shipping, dangerous goods warehousing and fuel farm management. The company has a presence in 17 countries spread across the GCC, Africa, Asia Pacific and Central America. Key accomplishments in 2016 included the acquisition of Abu Dhabi based Eships and expanding its fleet of ships; commissioning its first polyethylene silo and bagging facility in the Jebel Ali free Zone, and expansion of the company’s warehousing and logistics infrastructure in Dubai, Abu Dhabi and Oman.

National Aviation Services (NAS) is now present in 12 countries and in more than 30 airports across the Middle East, Africa and South Asia. In 2016, NAS celebrated its one-year anniversary in Cote d’Ivoire, and was awarded a- concession for all of Morocco’s international airports. - TradeArabia News Service
 




Tags: Agility | Kuwait | shipping | logisitics |

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