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Agility, a leading global logistics provider, today announced its 2016 financial results, reporting a net profit of KD 59.1 million, or 51.3 fils per share, an increase of 10.6% over the same period in 2015. Revenue for the year stood at KD 1,234.0 million and EBITDA at KD 115.2 million.
For the fourth quarter 2016, Agility reported a net profit of KD 15.7 million with an earnings-per-share of 13.6 fils, an increase of 9.7 % over the same period in 2015. EBITDA for the quarter stood at KD 31.4 million, an increase of 18.4% over last year.
In view of growing optimism and ongoing progress to date with respect to Agility’s 2020 EBITDA target of USD 800 Million, the Board of Directors is proposing a three-pronged distribution recommendation to the Annual General Assembly of the shareholders:
“Agility continues to steadily improve its financial performance, with Agility GIL closing the year with an EBITDA improvement of 17.0% and Agility’s Infrastructure group showing an EBITDA improvement of 30.1%. 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.”
Agility Global Integrated Logistics (GIL) revenues decreased 7.0% to KD 928.4 million over the same period last year. However, GIL’s net revenues grew by 1% on a constant currency basis.
“GIL continues to make progress. Profitability is increasing, with EBITDA margins improving from 2.7% in 2015 to 3.5% over the course of 2016. Volumes are growing: air freight tonnage grew by 9.8% and TEUs grew by 9.3%, 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 7.4% 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.”
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 1.1% on a reported basis (14.8% on a constant currency basis). On the EBITDA level, this translates into a 30.1% 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.
UPAC is one of the leading real estate and facility management companies in Kuwait, with key operations within the Kuwait Internal Airport, Sheikh Saad Terminal and Discovery Mall. In 2015, UPAC signed a partnership agreement with the National Real Estate Company (NREC) to develop Reem Mall, a planned two-million square foot mega-mall in Abu Dhabi with 450 shops.
“Agility starts 2017 with a strong position and confidence in our direction. We have our challenges, however we also see many opportunities on the horizon and are investing accordingly. We are making bets on the importance of using technology to better serve customers in GIL, as well as investing to grow our Infrastructure companies exponentially,” said Sultan. “We are making good progress towards our 2020 target, and want to thank our customers, employees, partners and shareholders for their ongoing support.” said Sultan.