Kuwait’s Agility, a global logistics provider, reported a 12% rise in second-quarter net profit, driven by its infrastructure division. Net profit in the three months to June-end was KWD16.8mn ($56mn), compared with KWD15mn a year earlier.
Agility EBITDA (earnings before interest, taxes, depreciation and amortisation) grew 14% to KWD32.6mn, while revenue increased 10.9% to KWD342.1mn. The infrastructure group, which was the primary contributor to the surge in revenue, saw its EBITDA rise 7.4%, to KWD27.5mn in Q2. Group revenue grew 12.1% to KWD89.1mn. Agility Real Estate, National Aviation Services (NAS), and Tristar were the main factors in the groups growth.
Real estate business saw increased revenue of 11.6% in Q2, while air and ocean revenue was driven by volume growth of 14.7% and 12.9% in air tonnage and ocean TEUs respectively.
Tarek Sultan, vice chairman and CEO, Agility, said: Agilitys infrastructure group was the primary driver of performance in Q2. Our industrial real estate business and aviation services company delivered particularly strong results. Revenue in our logistics business is growing because air and ocean volumes are increasing and contract logistics revenue is expanding, but rate pressure continues to affect profitability.
To achieve its 2020 EBITDA target of $800mn, Agility has two areas of focus. First, it is investing in its infrastructure businesses in emerging markets. Second, it is pushing to improve the technology-driven transformation of its business and development of online solutions for customers, according to a statement on Dubai Financial Market (DFM).
According to the report by Reuters, Agility said it expected lower legal fees following the settlement of a US court case and that this would be partially reflected in its third-quarter results, with the full impact of the reduction starting in the fourth quarter.