Agility reported Q3 2021 EBIT increase of 6.6% to *KD19.6m. Revenue grew 27.7% to KD124.5m. Adjusted for revaluation impact of investments measured at fair value through profit and loss, net profits from continuing operations increased 17.1% to KD 12.7 million from same period in 2020.
For the first nine months of 2021, EBIT increased 26.7% to KD59.7m, and revenue grew 17.9% to KD344.7m. Adjusted for the revaluation impact of investments measured at fair value through profit and loss, net profits from continuing operations for the nine months stood at KD35.9m, an increase of 45.3%.
For Q3, Agility reported a gain stemming from the sale of its Global Integrated Logistics unit to DSV in exchange for shares in DSV. The profit from discontinued operations that GIL reported in Q3 was KD918.4m and for the nine months was KD952.8m.
In August, Agility finalized the sale of GIL to DSV in exchange for an 8% stake in DSV (19.3m shares of DSV common stock).
Agility’s stake in DSV will be reported, as per IFRS 9, as financial asset at fair value through other comprehensive income, and will replace GIL’s equity value on the balance sheet. As of the date of closing, the difference between GIL’s equity value and the fair value of Agility’s DSV stake was booked as a one-time, non-cash gain from disposal of discontinued operations.
Tarek Sultan, Agility Vice Chairman and CEO, commented: “We believe our best days lie ahead though. We still own and operate the businesses that have historically generated 80% of Agility profits. Our stake in DSV has already appreciated 15% since the sale was announced in April, and we expect a return of an estimated $200m a year in cash through dividends and participation in DSV’s share buy-back program. Looking to the future, we are investing in high-growth markets, industries, and technologies.”
Agility Logistics Parks’ (ALP) performance has been in line with 2020 results. Demand for warehousing space continues to grow. ALP is growing its supply of available land to meet customer demand. Operations in Kuwait, Saudi Arabia and Africa are strong, and ALP is looking for new markets.
Tristar, a fully integrated liquid logistics company, posted a 26.5% increase in revenue for Q3. This performance is driven by recovery in international oil prices, performance in the Road and Transport segments, and dry bulk charter rates in the Maritime segment.
National Aviation Services (NAS) reported 77.6% revenue growth in Q3. NAS’s performance reflects a recovery in aviation and increasing passenger and cargo volumes across NAS’s network. NAS’s development of pandemic-related technology platforms and applications, intended to help aviation and health authorities facilitate safe travel, have been highly profitable. New businesses and the addition of operations at Baghdad and in the DR Congo and South Africa have also been positive contributors.
United Projects for Aviation Services Company (UPAC) experienced an 11% increase in Q3 revenue compared with the same period in 2020. The increase was primarily the result of higher revenue from airport-related services and parking following a gradual increase in traffic and the phased Q3 opening of operations and facilities at Kuwait International Airport. UPAC revenue continues to be affected by pandemic-related travel restrictions that remain in place and constrain passenger traffic. UPAC continues to take measures to reduce the pandemic’s impact on its business. Amid a successful vaccination campaign in Kuwait, UPAC operations have begun to show steady signs of recovery. UPAC anticipates gradual growth in aviation traffic in Q4 2021 and into 2022.
At Global Clearance House System (GCS), Agility’s customs digitization company, Q3 revenue grew 48.6%. The increase was driven by higher trade volumes and initiatives implemented by the company to spur growth.
Source: Agility
*KD=$3.31/€2.90
