813 million dirhams of profits for Agility in 2022

(MENAFN-Al-Bayan)

Agility, a long-term investor and operator in supply chain services, infrastructure and innovation, announced its financial results for the year 2022, achieving profits of KD 68 million (813 million dirhams), equivalent to 26.83 fils per share, an increase of 180.7% compared to the same period in 2022. 2021, after excluding the results of the integrated global logistics services activity that was sold during 2021. EBITDA increased during the year by 65.7% to reach KD 180.5 million, and revenues increased to KD 863.4 million, an increase of 77.6%.

The results include five months of performance for Menzies Aviation Services, which was acquired by Agility in 2022, and four months of results for HG Storage, which was acquired by Tristar.

On a like-for-like basis, excluding the performance of Menzies, HG Storage, and Global Integrated Logistics numbers, Agility profits are up 153.5% since 2021, EBITDA is up 44.1% to KD 157 million, and revenues are up 21.2%. .

As for the fourth quarter of 2022, Agility’s profits amounted to KD 26.6 million, an increase of 4218%, and EBITDA increased by 196.7% to reach KD 63.8 million, and revenues increased to KD 336.5 million, an increase of 137.8%.

2022 overview

Tariq Sultan, Vice Chairman of the Board of Directors of Agility, explained: “Agility’s performance was strong during 2022, supported by the two acquisitions that reshaped the company’s structure and created promising new opportunities. At the same time, as is the case with all companies, we are currently going through a state of uncertainty, given the performance of the global economy during 2023, in addition to uncertainty regarding the land leasing policy in Kuwait.

He continued, saying: “It is important to stress that we adopt a long-term view as a company that creates and maximizes value. When it comes to our controlled business, the acquisition of Menzies by Agility and the acquisition by Tristar of HG Storage helped accelerate our growth, expand our geographical reach and increase our investments in sectors that have Strong growth potential in the future. On the part of the uncontrolled investment sector, stock market fluctuations affected the value of our investments, but despite the daily stock price movements, we look beyond that, represented by the strategic value, growth and returns that we believe our investments will achieve for our shareholders in the long term.

Sultan added: “Today, Agility is diversified geographically, operationally and financially, and this helps us reduce our dependence on one country, sector or asset. Our controlled companies employ a workforce of 45,000 people operating on six continents. In conclusion, today we are a different company than we were two years ago, and we continue to develop and grow and enhance value for our shareholders, customers, employees and the communities in which we operate.

Dividend recommendation

As a result of the uncertainty caused by the government’s policy regarding land use and the role of the private sector in the economy, the Board of Directors has recommended not to distribute dividends for the year 2022. This recommendation is subject to the approval of the General Assembly of the Company’s shareholders.

The Board of Directors will closely monitor events and evaluate developments related to government policy, and accordingly will assess the feasibility of distributing interim quarterly dividends during the 2023 fiscal year.

Controlled Agility Companies

Agility controlled companies are companies that it controls and manages, and whose financial performance is listed and reported on Agility’s profit and loss statement. In our 2022 consolidated statement, our controlled companies collectively achieved EBITDA of KD 195.1 million, and revenue of KD 863.4 million, up by 57% and 77.6% respectively compared to 2021.

The performance of this segment will be reported under three main groups: aviation services, fuel logistics, and other controlled companies, which include Agility Logistics Parks, UPAC, Global Clearinghouse Systems, and others.

Aviation services

Agility acquired Menzies in August 2022 and merged it with the business of National Flight Services (NAS), Agility’s ground handling business. As a result of this acquisition and merger, Agility’s global presence expanded, which had shrunk after the sale of the global integrated logistics business in 2021. The acquisition of Menzies gives Agility the ability to leverage this segment for future growth. The process of integrating the two companies is nearing completion, as the process was relatively automatic; Given that the two companies complement each other’s geographical footprint and operations.

In the aviation services sector, Agility announced EBITDA of KD 41.5 million in 2022, and revenues of KD 294 million. These results include the full year performance of “NAS”,
Plus five months of Menzies’ results in 2022.

The recovery of air traffic after “Covid 19” resulted in passenger and cargo volumes,
This led to growth in ground handling services during 2022. The recovery was offset by a slight decline in revenue from COVID-related services, which were mainly provided in Kuwait. The strongest overall recovery was an increase in passenger flights across the Americas. It is worth noting that cargo volumes began to slow towards the end of 2022.

Fuel logistics

Tristar’s revenues for 2022 grew by 60.1% to reach KD 252.9 million compared to 2021, and EBITDA increased by 39% to reach KD 53.1 million compared to 2021. The marine fuel freight and warehousing sector in Tristar achieved the highest growth rate . A major driver of Tristar’s performance in 2022 was its recent acquisition of a 51% stake in HG Storage International, which was completed at the end of August, as well as the renewal of two large long-term international peacekeeping contracts, making Tristar the largest supplier. to the United Nations (as listed on the United Nations Procurement website), as well as a boom in marine fuel shipments.

In 2023 Tristar is focused on growing and deepening its relationship with premium clients, and its well-balanced portfolio has helped deliver long-term sustainable value for shareholders.

Other controlled businesses

For the year 2022, this group recorded EBITDA of KD 100.4 million and revenue of KD 316.6 million, increasing by 42.3% and 14.4% respectively compared to 2021.

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