Kuwait: Q3 results show growth in revenues and strong balance sheet.
Agility, one of the world’s leading providers of integrated logistics to businesses and governments, today announced its financial results for the third quarter of 2008. In the last nine months, Agility’s revenue rose by 10.6% from KD 1.240 billion in 2007 to KD 1.372 billion in 2008. The net revenues compared to the same period last year climbed 11% from KD 437.5 million to KD 485.8 million.
Tarek Sultan, Chairman and Managing Director of Agility, said: “Agility’s business is growing despite the fiercely competitive business environment. With the current economic downturn, no business or market is totally insulated from financial turmoil. The logistics industry is no exception. Despite this, Agility’s position is more stable than most other companies.”
The company’s operating profit reached KD 120.4 million and net profits reached KD 107.8 million reflecting earnings per share at Kuwaiti Fils 105.0 compared to 114.0 Fils per share in 2007.
“In the third quarter of 2008, Agility established a healthy cash position of KD 260.8 million with net debt at KD 177.12 million,” Sultan said. “Earlier this year, we refinanced our debt and extended our maturity profile.”
Agility’s overall revenue was mainly driven by organic growth. Agility’s Global Integrated Logistics (GIL) business group experienced a 14 % increase in revenue compared to the same period a year ago; representing KD 907.3 million. This was mainly through Agility’s emerging markets presence, largely in India and China and in the Middle East, where new projects also contributed to the increase.
The Agility GIL business group won a number of new contracts. Some of the significant contracts were:
EQUATE Petrochemicals Company Contract: A non-exclusive contract from the EQUATE Petrochemical Company to provide land transportation and distribution services of the company’s plastic products in the Middle East region.
Borouge Shanghai Contract: In August, Agility (Abu Dhabi) PJSC was awarded a contract by Abu Dhabi Polymers Company Limited (Borouge) to build the Borouge Compound Manufacturing Unit (CMU) and Shanghai Logistics Hub in Shanghai, China, and provide local logistics services for Borouge customers in Asia.
KNPC 4PL Contract: Agility signed a contract with the Kuwait National Petroleum Company (KNPC) to provide 4PL logistics solutions in Kuwait.
Also, worth mentioning are the two prestigious awards landed by Agility Fairs & Events, a specialized division of Agility GIL. Agility Fairs & Events won the International Exhibition Logistics Associates (IELA) awards for Best Export Agent and Best Site Agent.
Agility’s Defense and Government Services (DGS) business group experienced a 2.4% increase in revenues over the same period in 2007; reaching KD 413.9 mn. Due to its crucial nature, the defense and government sector remains largely unaffected by the current economic turmoil and will continue to present promising business opportunities for Agility DGS while maintaining its current revenue stream. Agility DGS also continues to diversify its customer base. During the last quarter, Agility DGS won three important contracts:
Air Force Bulk Fuel Services Contract: Agility DGS, through a joint venture, was awarded four Air Force Bulk Fuel Services contracts that cover the operation and maintenance of bulk fuel facilities for the Defense Energy Support Center (DESC) to Operate Bulk Fuel Facilities at bases in Japan, Korea and Guam.
DDKS Contract renewal: The Defense Logistics Agency (DLA) renewed Agility DGS’s contract for warehouse and distribution services at the Defense Distribution Center, Kuwait/Southwest Asia (DDKS), where Agility will continue to provide DLA with a complete warehouse management system using its extensive facilities in Kuwait.
US Marine Corps CSP Contract: The Marine Corps Logistics Command awarded Agility DGS its Consolidated Storage Program contract to store, distribute and maintain personal equipment for the U.S. Marine Corps at 19 bases in the United States and around the world.
Agility Investments also saw an increase of 21.4% in revenues compared to the same period in 2007, reaching KD 50.5 mn. These revenues were boosted by the groups, real estate division and investments in trade facilitation. The real estate division’s revenues grew 9 per cent, to KD 19.3 million.
Agility has also been actively making a number of acquisitions in the last quarter. The company bought 100 per cent of Baisui United Logistics (Shanghai) Co., Ltd (Baisui); a Shanghai-based logistics company that focuses on providing a range of services for the Chinese market, including intra-city, regional and long-haul transport and warehousing, mainly to the chemicals, automotive, and FMCG sectors. Agility also acquired, Geopetrol International Limited, a top freight forwarding and logistics company specializing in the Canadian oil and gas market and a strategic stake in Bumi Geo Engineering Private Limited (BUMI), through Alcazar Capital Holdings Limited. Bumi is a Geo Engineering company serving the infrastructure sector and operating in India, Singapore, Dubai and Europe.
Sultan said: “There are a number of positive indicators for Agility. Firstly, we operate in relatively stable market sectors. For another, our global presence and emerging markets investments will help us balance the higher volatility we expect to see in the U.S. and Europe in the short-term. Most importantly, though, we have a strong balance sheet and low levels of debt, giving us financial flexibility in this shifting economic landscape.”
He said: “With every challenge comes opportunity, and Agility has built much of its business on seizing opportunities where others only see risk. Over the next few months, we will be reviewing our plans and new external opportunities to determine if the timing is right to accelerate certain efforts or take advantage of new market conditions. We will be selective and prudent, but we will be bold in certain areas within our core business. And every challenge we undertake on will be in the best interest of all our key stakeholders – our shareholders, our customers and our employees. ”
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