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Agility reports 18.7pc increase in Q2 earnings

KUWAIT, August 6, 2018

Agility, a leading global logistics provider, has reported second-quarter earnings of 13.8 fils per share on a net profit of KD20 million ($65.98 million), an increase of 18.7 per cent over the same period in 2017.

Agility's EBITDA grew 13.6 per cent to KD37.1 million ($122.3 million) and revenue increased 12.3 per cent to KD384.2 million ($1.26 billion), said a statement from the company.

First-half earnings of 26.9 fils per share and net profit of KD38.9 million ($128.3 million) were up 24 per cent. First-half EBITDA was KD74.8 million ($246.7 million), an increase of 18 per cent. Revenue for the first half was KD756 million ($2.49 billion), an increase of 14.1 per cent, it said.

Tarek Sultan, vice chairman and CEO, Agility, said: “Our second quarter results were in line with expectations and consistent with the previous growth trend the company has been seeing.”

“Our infrastructure companies performed well, as did our logistics business, which witnessed another quarter of volume and revenue growth despite margin pressure,” he added.

Global Integrated Logistics (GIL) business strategy of effective trade lanes development, productivity optimisation and defined tailor-made solutions to customers continued to generate favourable results. GIL gross revenue grew 13.4 per cent to KD289.3 million ($954.4 million). Net revenue rose 5 per cent to KD66.7 million ($220.04 million), primarily due to growth in freight forwarding and contract logistics, it added.

The respective revenue and net revenue growth rates for the first half were 14.5 per cent to KD567.4 million ($1.87 billion) and 6.4 per cent to KD131.3 million ($433.1 million), said a statement.

Air freight continued its strong performance in Q2, driven by solid volume growth of 14 per cent and stable yields compared to the same period of last year. Air freight net revenue grew 21.9 per cent in Q2 and 20.3 per cent in the first half. Ocean freight had consistent volume growth but with lower yields. In Q2, container volume increased 8.2 per cent vs. Q2 2017. Ocean freight net revenue grew 7.4 per cent in Q2 and 7.3 per cent in the first half.

Regionally, air freight and ocean freight performance was strongest in the Americas, Asia Pacific and Europe, said a statement.

Contract Logistics continued its steady growth, primarily in the Middle East and Asia Pacific, as a result of new business and effective utilisation of facilities. Contract Logistics net revenue grew 3.2 per cent in Q2 and 4.5 per cent in the first half.

GIL's net revenue margin was 23 per cent in Q2, down from 24.9 per cent a year earlier due to yield degradation in road freight and project logistics, primarily in the Middle East and Europe. GIL’s EBITDA reached KD9.3 million ($30.6 million) in Q2, and its EBITDA margin was 3.2 per cent, slightly lower than 3.6 per cent in Q2 2017.

In the first half, EBITDA grew 13.3 per cent to KD16.8 million ($55.4 million). EBITDA margin in the first half remained flat at 3 per cent vs. the same period in the previous year.

GIL is accelerating its digital transformation to increase the efficiency of its business processes, gain business insights, develop innovative logistics solutions, differentiate its products and better connect to its customers,

Agility’s Infrastructure group EBITDA rose 16.8 per cent (after adjusting for the impact of the US government settlement in 2017), to KD31.3 million ($103.2 million) in Q2. Revenue grew 9.5 per cent to KD97.5 million ($321.5 million). For the first half of 2018, EBITDA grew by 20.1 per cent and revenue by 14.8 per cent. All entities in the group contributed to this performance.

Agility Industrial Real Estate continues to improve the efficiency of its operations in Kuwait. It also concluded its Phase I development in Riyadh, Saudi Arabia, of 80,000-sq-m of warehousing capacity and started with Phase II, for which an additional 120,000 sq m will be delivered next year.

Expansion in Africa is progressing according to plan as Agility Industrial Real Estate moves ahead with its development in Ghana and prepares to start new developments in Mozambique, Nigeria and Cote d’Ivoire.

Tristar, continues to expand its fuels operation with existing customers. Tristar is also investing and diversifying its operations by expanding in shipping and broadening its geographic reach.

National Aviation Services (NAS) operations in Kuwait are generally stable. NAS operations in Cote d’Ivoire and Afghanistan continue to be positive contributors to the group. In addition, NAS’s new operation in Uganda has contributed significantly in 2018. Operations in Tanzania and Morocco continue to bear down on our group, but Tanzania is poised for a turnaround in 2018 and has numerous opportunities in the pipeline.

GCS, a company specialised in digitising customs, showed improved performance in the second quarter. GCS manages all customs’ activities at ports of Kuwait and aims to enhance customs modernisation through its services.

UPAC revenue and profits increased during the second quarter. Operations at Kuwait Airport and other prominent locations in Kuwait continue to drive growth. In addition, construction of Reem Mall in Abu Dhabi is moving forward according to plan, it stated. – TradeArabia News Service




Tags: | Agility | increase | earnings | Q2 |

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