Kuwait, Middle East-based logistics provider, Agility, generated consolidated revenues of 378.8 million Kuwaiti Dinar (US$1.25 billion) in the first quarter of 2019, the company reported today. That’s a 1.9 percent increase on the revenues generated in the first quarter of 2018.
Commenting on the results, Agility vice chairman and CEO Tarek Sultan said, “again a good start for Agility this year, though we are witnessing an environment where growth is slowing. We have seen good improvement across the board, and are accelerating our efforts to achieve our targets.”
Agility also reported earnings before interest, tax, depreciation and amortization of KD 46.3 million (US$152.21 million), which is an increase of 4.1 percent compared to the first quarter of 2018. Net profits of KD 20.3 million, up 10.2 percent on the prior corresponding period, were also reported today.
Core business
The group’s core business is Agility Global Integrated Logistics. Agility-GIL generated revenues of KD 275 million (US$904 million) in the first quarter of the year, which is a 1.1 percent decrease on the same period of 2018. This decline was attributed to currency fluctuations. Revenue declines in project logistics and road freight were offset by revenue increases in ocean freight and contract logistics, the group added.
Earnings before interest, taxation, depreciation and amortization for Agility-GIL stood at KD 6.8 million by the end of March 2019. That is nine percent down on the prior corresponding period. “The drop is attributable to costs associated with GIL’s digital transformation and commercial investments,” Agility said in a statement.
The group’s core services include international air, ocean and road freight along with associated services such as customs clearances, bonded warehouse storage, transport insurance and packing/re-packing.
Segment-by-segment results
Agility’s air freight service handles 415,000 metric tons and 650,000 shipments per year. A metric ton is equivalent to 2,204.6 U.S. pounds. Air freight volumes (tons) increased by 5.2 percent in the first quarter with growth reported in “multiple trade lanes”.
The group’s ocean freight service handles 740,000 twenty foot equivalent unit shipping containers and 450,000 shipments a year. Ocean freight revenues were driven by “yield improvement,” the group said, adding that there was a 2.3 percent TEU growth last year.
On the trucking side, Agility offers less-than-truckload and full truckload services across Europe, the Middle East, Africa, Asia and the Americas.
Agility’s other logistics businesses
The group’s infrastructure business reported earnings before interest, taxation and depreciation of KD 32.5 million (US$106.84 million).
Agility’s logistics parks business reported 23 percent revenue growth in the first quarter, although it did not disclose the actual amount of revenues generated. The group manages 21 million square meters of logistics parks in emerging markets such as Mozambique, India, Uganda, Ghana, Côte d’Ivoire, Egypt, Lebanon, Iraq, Kuwait, Saudi Arabia, Bahrain, Qatar, the UAE, Oman, Afghanistan and Pakistan.
Agility also offers specialist logistics services, such as chemicals transport and project logistics among others. One of its businesses is Tristar, a Dubai-based surface fuel transport company. It has 16 fuel storage facilities in locations around Africa and it both owns and operates a fleet of 22 ocean-going and coastal oil tankers.
Tristar posted 13.3 percent revenue growth, although the absolute revenue number was not disclosed. Growth was driven by road transport and warehousing operations. Tristar also signed a five-year charter with oil major Shell to deliver six medium-range product tankers by 2020. That charter has the option of a five year extension.
Agility employs 26,000 people across 100 companies.