Kuwait’s Agility reports KD12.6m in earnings for Q3 2022

Kuwait-based Agility reported third-quarter earnings of KD12.6m, or 4.95 fils per share, an increase of 48.3 per cent over the same period in 2021, excluding the earnings reported last year from GIL.

Agility’s earnings before interest, taxes, depreciation, and amortisation (EBITDA) increased 57.5 per cent to KD45.8m and revenue was KD256.3m, an increase of 105.9 per cent.

The Q3 numbers include two months of results from Menzies Aviation, which was acquired by Agility during the quarter.

Read: Kuwait-based Agility completes £763m acquisition of Menzies Aviation

On a like-for-like basis, excluding Menzies numbers, earnings stood at KD10.8m, an increase of 27.7 per cent over the same period in 2021, again excluding the earnings reported last year from the sale of GIL.

Agility’s EBITDA increased 21 per cent to KD35.2m and revenue was KD166.8m, an increase of 32.2 per cent.

For continuing operations, Agility’s earnings through nine months of 2022 were KD41.4m, or 16.36 fils per share, an increase of 63.7 per cent. EBITDA for the nine months was KD116.8m, an increase of 33.5 per cent; revenue was KD526.8m, an increase of 52.9 per cent.

Tarek Sultan, vice chairman of Agility, said: “Agility reported good results in this quarter despite challenging market and geopolitical conditions. Our controlled businesses continued to perform well and execute their growth strategies. Our investment segment was impacted by the broader stock market performance. However, Agility is a strategic investor.”

Sultan added “Agility’s acquisition of UK-based aviation-services provider John Menzies, completed in Q3, is part of Agility’s strategy to add and grow core businesses with the potential for strong returns. By combining our National Aviation Services (NAS) business with Menzies, we’ve created a global industry leader with a footprint in developed and developing aviation markets around the world.”

In Q3, Agility’s controlled businesses reported EBITDA of KD47m and revenue of KD256.3m, increases of 44 per cent and 106 per cent respectively, over the same period in 2021.

Agility Logistics Parks (ALP) Q3 revenue grew 9.7 per cent. To meet the increasing demand for warehousing space, ALP is optimising its existing land bank, developing new projects, and looking to acquire additional land, especially in the Middle East and Africa.

In Kuwait, an ALP affiliate is developing 1.2 million sqm of land as industrial and storage complexes in Sabah Al Ahmed residential area. In Saudi Arabia, Agility recently signed an agreement to build a logistics park near Jeddah and operate the park under a 25-year concession. The ALP-Jeddah is to open in 2025.

Tristar, a fully integrated liquid logistics company, reported revenue growth of 75.5 per cent for the third quarter 2022. Tristar won the renewal of two large long-term contracts to supply fuels for peacekeeping missions, solidifying the company’s position as the top supplier among those listed on the United Nations procurement website. In addition, Tristar’s acquisition of a 51 per cent ownership stake in HG Storage International Limited contributed to its Q3 growth.

Menzies Aviation results combined the Q3 performance of NAS and two months of performance by John Menzies PLC. Menzies Aviation has roughly 35,000 employees and operates at 254 airports in 58 countries.

United Projects for Aviation Services Company saw a 28.7 per cent third-quarter revenue increase. The increase was mainly attributable to a rebound in airport-related services and parking following the reopening of Kuwait International Airport and easing of post-Covid restrictions, which resulted in an increase in flight and passenger volumes. UPAC expects this trend to continue with a gradual increase in airport traffic in 2022 and beyond.

At Global Clearinghouse Systems (GCS), Agility’s customs-modernisation company, Q3 2022 revenue declined 8.1 per cent from Q3 2021. The decrease resulted from lower trade volumes.

Last month, Agility signed an agreement with the Egyptian government to develop and operate two customs and logistics centers in the Suez Canal Economic Zone, one of the most important trade hubs in the region.

Agility holds non-controlling minority stakes in a number of businesses, both listed and non-listed, with a carrying value of roughly KD1.2bn. The carrying value of those stakes declined from the Q2 level of KD1.4bn as a result of broader declines in global equity markets. Global markets have been volatile amid increases in interest rates, supply chain disruption, and ensuing economic impact.