Global logistics provider, Agility, reported a net profit of KWD59.1mn in 2016, an increase of 10.6% over the same period in 2015.
Revenue for the whole year stood at KWD1.2bn. For the fourth quarter of 2016, Agility reported a net profit of KWD15.7mn, an increase of 9.7 % over the same period in 2015.
In view of growing optimism and ongoing progress to date with respect to Agility’s 2020 EBITDA target of $800mn, the board of directors proposed a three-pronged distribution recommendation to the annual general assembly of the shareholders, a cash dividend distribution of 15%; a bonus share distribution of 10% for the fiscal year 2016; and a share buyback program to increase it’s treasury share inventory up to 10% of its total share capital.
Tarek Sultan, Agility CEO, said: “We continue 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%. The company generates healthy cash flows, and remains on track to reach its goal in EBITDA by 2020.
“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. We are 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. Our 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 KWD928.4mn over the same period last year. However, GIL’s net revenues grew by 1% on a constant currency basis.
Sultan added: “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 186ha of warehousing space across the globe, also grew by 7.4% this year. 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.”
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.
Sultan said: “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. We are making good progress towards our 2020 target, and want to thank our customers, employees, partners and shareholders for their ongoing support.”