AD Ports third-quarter net profit jumps 73% on Hormuz impact mitigation efforts

AD Ports Group reported a 73% increase in its third-quarter net profit, reaching Dh767 million ($209 million), as the company's efforts to mitigate the impact of the closure of the Strait of Hormuz paid off. The Abu Dhabi-based ports and free zones operator attributed the surge in earnings to its focus on developing alternative multimodal trade routes and operations across the UAE to enhance supply chain resilience.

This strategy helped to minimize the adverse effects of Strait of Hormuz traffic disruptions on its customers in the UAE and the wider Gulf region. The company implemented several measures, including rerouting cargo operations and feeder shipping services to Fujairah Terminals and Khor Fakkan Port, deploying new land and air bridges, and establishing additional warehousing and storage facilities.

The company's revenue for the third quarter surged to nearly Dh8 billion, a 48% increase year-on-year, driven by strong growth in its core business clusters. The ports cluster, which accounted for 10% of the total revenue, saw a 12% increase compared to the previous quarter, while the maritime and shipping cluster revenue rose by 56% to Dh4.74 billion, making up about 58% of the group's total quarterly revenue.