Agility has reported second-quarter earnings of 13.4 fils per share on net profit of KD 16.8 million, an increase of 12.8% and 12.1% respectively over the same period in 2016. Agility EBITDA grew 14% to KD 32.6 million. Revenue increased 10.9% to KD 342.1 million.
First-half earnings of 24.9 fils per share and net profit of KD 31.4 million were up 12.1% and 11.6% respectively from first-half 2016. First-half EBITDA was KD 63.4 million, an increase of 15.6%. Revenue for the first half was KD 662.6 million, an increase of 9.1%. The results are in line with the company’s long-term guidance.
Tarek Sultan, Agility Vice Chairman and CEO, said: “Agility’s 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 $800 million, Agility has two areas of focus. First, it is investing in its Infrastructure businesses in emerging markets. Second, it is continuing to improve the underlying fundamentals of its commercial logistics business, particularly in technology-driven transformation of its processes and development of online solutions for customers.
Sultan said continued earnings growth will be driven by operations and by a reduction in legal fees that we anticipate as a result of the settlement of the U.S. case. The impact of lower legal fees will be partially reflected in Q3 before realizing the full impact starting Q4, he said.
“Investments in Infrastructure businesses will limit free cash flow,” Sultan said. “The company is moving toward a ring-fenced net debt position to finance these investments in the future.”