Sulaibiya, Kuwait-based global logistics company Agility (DFM: AGLTY) has reported 400.70 million Kuwaiti dinars ($1.32 billion) in third quarter revenues for the three months through September. That’s an increase of 1.6% on the corresponding period in 2018.
Earnings before interest, tax, depreciation and amortization, or EBITDA, stood at 47.40 million dinars ($155.78 million), a 20.92% year-over-year increase on the third quarter of 2018.
Agility also reported an 8.5% increase in net profit of 21.7 million dinars ($71.32 million).
“Our Infrastructure portfolio of companies drove our results in the third quarter, with all major entities seeing growth. Our Global Integrated Logistics (GIL) business, on the other hand, was affected by challenging market conditions and trade-war headwinds that have affected the industry as a whole. Even so, GIL is moving forward aggressively with its digitization agenda to improve operational efficiency and drive a better customer experience,” said Tarek Sultan, Agility Vice Chairman and CEO.
Agility Global Integrated Logistics
GIL reported 285 million dinars ($936.70 million) of gross revenues in the third quarter, which was a 2.4% year-on-year decline. This decrease was attributed to “challenges in the freight forwarding industry,” the company said.
EBITDA was 7.8 million dinars ($25.64 million), which was a 1% decrease from the same period in 2018. “The decrease was due to higher operating expenses related to new facilities, as well as investments in digital transformation,” the company said.
GIL also revealed some details of the cargo volumes it moved during the third quarter.
Air freight volumes fell by 15.8% due to “trade concerns” and lower demand that crossed both sectoral and geographical borders. However, the company said, the decline in volume was offset by higher yields, so GIL’s air freight revenues rose by 2.8% even though volumes fell.
Ocean freight volumes (ocean shipping containers in twenty-foot equivalent units) fell by a hefty 9.3% but, like air freight, yields improved by 13.7% year-over-year. Yields were said to be “strongest” in the Americas and Europe. Ocean freight revenues improved by 3.2% due to higher yields.
The company’s infrastructure division reported revenues of 119.7 million dinars ($393.41 million), which is an increase of 13.4%. The division also reported EBITDA of 32.60 million dinars ($107.14 million), which the company said was a 3.8% increase on the third quarter of 2018.
Revenue growth was driven by Agility Logistics Parks, which saw increased revenues from facilities completed in 2018. The division has about $1.5 billion of real estate assets, including 20 million square meters of land and over three million square meters of logistics facilities. It operates through the Middle East, Africa and South Asia.
Other businesses within Agility include Dubai-based Tristar, which posted 9.6% revenue growth. Tristar is an integrated liquid logistics company, which works across 20 different countries in the trucking, ocean shipping, coastal bunkering, retail fuel, specialized warehousing, and aviation fuel supply. Tristar predominantly works in the Middle East and Africa with some operations in the Carribbean, the U.S. and Pakistan.
Another business in the Agility Infrastructure division includes National Aviation Services, which offers ground handling, cargo management, lounges and airport services. It reported revenue growth of 8.5% in the third quarter.