Agility has reported earnings for 2020, the company reported net profit of KD* 41.6m, a decrease of 52.1% from 2019. Revenue for the year reached KD 1.6bn, an increase of 2.7%, and EBITDA reached KD 162.4m, a decrease of 15.9% compared to 2019. The 2020 results include one-time expenses related to restructuring that took place in response to the COVID-19 pandemic for KD 12.5m and KD 28m expense associated with the loss of Amghara land.
“Our company moved swiftly to adjust its cost structure to match the reality confronting each part of the business, while at the same time making sure to preserve our long-term strategic vision and ongoing support for our communities around the world,” said Agility Vice Chairman and CEO Tarek Sultan.
Agility Global Integrated Logistics (GIL)
GILs’ full-year 2020 EBITDA was KD 66.6m. Positive momentum for Air Freight and Contract Logistics was complemented by a strong focus on containing costs and driving operational efficiency throughout the organisation. That led to full-year EBITDA growth of 13.6% compared to 2019. Excluding restructuring one-time expenses, EBITDA grew 35% year-on-year.
GIL’s 2020 full-year net revenue was KD 283.7m, a 3.8% increase compared with 2019. Volumes declined in both Air Freight and Ocean Freight in 2020 by 15.6% in Air Freight (tonnage) and 12% in Ocean Freight (TEUs), as a result of COVID-19’s impact on demand and economic contraction across industries and geographies. However, higher yields in Air Freight, driven by continued demand for exceptional shipments, including many for Life Sciences customers and products, offset the decline in volume.
Contract Logistics posted 12.2% net revenue growth, mainly as a result of strong performance in the Middle East (specifically, Kuwait, Saudi Arabia, Abu Dhabi) and Asia-Pacific (Australasia and Indonesia).
Agility’s Infrastructure Companies
In 2020, EBITDA declined 24.4%, and revenue fell 12%. COVID-19 had an uneven impact on the Infrastructure companies. Entities operating in the aviation sector were significantly hit, whereas others were resilient and reported growth during the same period.
Agility Logistics Parks (ALP) reported 5.4% revenue growth for the year, driven by increased demand for warehousing capacity from customers mainly in Kuwait and Saudi Arabia. In Africa, Mozambique and Cote d’Ivoire, operations came online, joining the existing Ghana operation as part of Agility’s Africa expansion strategy.
Tristar posted an 11.9% revenue decrease for 2020, primarily due to lower international fuel prices, reduced commercial fuel volumes, lack of mobilisation revenue realised in 2019, and the impact of the pandemic on road transport. Tristar’s Maritime segment reported an increase in revenue from the deployment of new vessels and favourable market charter rates.
Despite lower revenues, Tristar reported an EBITDA increase over 2019, reflecting higher earnings from the Maritime segment, where increases in vessel fleet and market charter rates offset lower earnings from the Fuel segment.
National Aviation Services (NAS) reported a 38.9% drop in revenue in 2020, despite a record January-February. The remainder of 2020 was defined by the COVID-19 pandemic, which forced a near-complete suspension of air passenger traffic for the bulk of the year. All of NAS’s major airports experienced closure to international traffic for at least some part of the year. NAS’s lounge business was the hardest hit, followed by passenger services.
United Projects for Aviation Services Company (UPAC), reported a 2020 revenue decrease of 49.9%, primarily due to the suspension of operations at the Kuwait International Airport and the continuation of travel restrictions imposed as a result of the pandemic.
*$= KWD0.3/ €= KWD0.37
Source: Agility
