AD Ports Group's 2024 Financial Performance Surges Amid Strategic Acquisitions

AD Ports Group has reported a significant financial upturn for the fiscal year ending 31 December 2024, driven by strategic acquisitions and robust organic growth. The company's revenue soared by 48% year-over-year to AED 17.29 billion, bolstered by the integration of Noatum and Global Feeder Shipping , alongside double-digit organic growth across its five business clusters.

Earnings before interest, taxes, depreciation, and amortisation experienced a remarkable 69% increase, reaching AED 4.51 billion, with the EBITDA margin expanding to 26.1% from 22.8% in the previous year. This performance was primarily driven by the Maritime & Shipping, Ports, and Logistics clusters.

Profit before tax and minorities rose by 45% to AED 2.04 billion, while total net profit climbed 31% to AED 1.78 billion, reflecting a net profit margin of 10.3%. Notably, this growth occurred despite the introduction of a 9% corporate income tax in the UAE during 2024. Net profit attributable to owners increased by 24% to AED 1.33 billion, underscoring strong operational performance.

The company's balance sheet also strengthened, with total assets growing by 15% to AED 63.70 billion and total equity rising by 15% to AED 27.83 billion. Enhanced operating profits and stable debt levels led to a reduction in the net debt-to-EBITDA ratio to 3.3x, down from 4.4x in 2023. Liquidity improved, with cash and equivalents reaching AED 2.82 billion by year-end, supported by earnings growth and the refinancing and upsizing of bank facilities.

In December 2024, AD Ports Group completed a major restructuring, integrating the assets of Noatum Group, which it had acquired in July 2023 for €660 million. This integration marked the largest corporate restructuring in the company's history, enhancing its global presence across 32 countries. The restructuring included rebranding Noatum's maritime unit to Noatum Maritime under the SAFEEN Group and establishing Noatum Ports to manage international port operations. Noatum Logistics assumed responsibility for AD Ports Group's logistics cluster, further strengthening the company's global logistics capabilities.

The acquisition of GFS, creating the world's largest independent feeder carrier, significantly expanded AD Ports Group's trade activities and connectivity to core markets. This move enhanced the company's feedering business, providing economies of scale through an expanded route network and fleet, and linking key markets in the Gulf, Indian Subcontinent, Red Sea, and Turkey to its primary port assets, including Khalifa Port.

These strategic acquisitions and restructuring efforts have propelled AD Ports Group into the ranks of the world's top 20 container port operators, as per a survey by Drewry International. Additionally, the company secured the 40th position in Lloyd's List Top 100 global rankings, reflecting its elevated global profile and reach.

The company's five integrated business clusters—Digital, Economic Cities & Free Zones, Logistics, Maritime, and Ports—have collectively contributed to its robust performance. The Economic Cities & Free Zones cluster oversees operations of KEZAD Group, the region's largest integrated trade, logistics, and industrial hub, spanning over 550 square kilometres. The Maritime cluster, through SAFEEN Group, offers comprehensive maritime services, including pilotage, bunkering, and transshipment, while the Ports cluster manages 10 terminals and ports within the UAE, in partnership with global entities such as COSCO SHIPPING Ports and CMA CGM Group.