Agility has announced its financial results for the Q3 of 2016, reporting a net profit of KWD15.17m, an increase of 11% compared to the Q3 of 2015. Earnings-per-share stood at 13.19 fils, and EBITDA stood at KWD28.90m, a 19% increase compared to the same period in 2015. Revenues were KWD312m for the quarter, a 7% decrease over Q3 last year.
The company announced the financial results for the two lines of business, Agility Global Integrated Logistics (GIL) and Agility’s Infrastructure Group.
Revenue for GIL stood at KWD228.65m in Q3 2016, an 8% decline from Q3 of 2015. Net revenues were marginally lower in this quarter relative to the same period in 2015, with margins expanding from 25% to 26% in Q3 2016.
Agility reported that GIL continued to see growth in demand for contract logistics in emerging markets, as well as strong performance in ocean freight, both in terms of volume and yield. However, in air freight the business grew considerably in terms of volume with a tougher yield compared to the prior year quarter, resulting in flat net revenue. The main impact to net revenue shortfall remains the slowdown in the Project Logistics business as a result of the slowdown in the oil and gas market.
Agility Infrastructure’s group of companies continues to be the largest contributor to Agility’s profitability, contributing KWD85.91m to Q3 2016 revenues.
Agility Real Estate, the largest contributor in the group, increased its revenues by 7% in Q3 2016, compared to the same period in 2015. Agility opened its first logistics distribution park in Ghana this quarter, the first of a series of planned distribution parks connecting African countries to each other and to the world.
Agility reported that other Infrastructure companies have also reported a healthy growth in this quarter and are making progress in new customer acquisition and geographic expansion. Tristar, Agility’s fuel logistics business, won a three-year, $165m contract to support the United Nations. Agility’s subsidiary NAS won a 10-year concession to operate lounges in nine airports in Morocco.
Tarek Sultan, Agility’s CEO, commented, “We have now been seeing continuous underlying increase in the profitability of the business. This is driven by steady progress in turning around our Global Integrated Logistics business, as well as by continued financial performance and growth in our Infrastructure group of companies”.
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