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AD Ports Shows 'Resilience' as First-half Profit, Revenue Climb Amid Geopolitical Challenges

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AD Ports Shows 'Resilience' as First-half Profit, Revenue Climb Amid Geopolitical Challenges

Abu Dhabi Ports (ADX:ADPORTS), d/b/a AD Ports Group, said Friday it delivered a "strong performance" in the first half, with high-double-digit growth in profit and revenue, despite the challenging and volatile geopolitical and macroeconomic conditions.

The state-owned port and industrial zones developer's attributable net profit for the six months ended June 30 jumped 64% year over year to 1.09 billion Emirati dirhams, while revenue was up 36% at 12.83 billion dirhams.

The results confirm "the resilience of its diversified and integrated trade ecosystem amidst a challenging and volatile geopolitical and macroeconomic backdrop marked by conflict in and around the Strait of Hormuz," the company said in its earnings release.

Amid disruptions across the Strait of Hormuz, the company said it tapped alternative multimodal trade routes and operations across the United Arab Emirates to minimize the impact on its customers.

The measures included rerouting cargo operations and feeder services to ports located outside the strait, deploying new land and air routes, and establishing additional warehousing and storage facilities.

"The Group's operating presence across the entire supply chain, substantial landlord business model component in its domestic market, and operational flexibility have been instrumental in mitigating the negative effects of regional disruptions on its UAE operations, while proving critical in turning risks into differentiated opportunities, especially in the shipping business," the company added.

AD Ports' stock was more than 1% in the red during early trading in Abu Dhabi.

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