Agility Global Integrated Logistics (GIL) recorded a 1.3 percent increase in EBITDA in the first half of 2020, compared to the same period last year. The logistics provider cited strong performance in contract and project logistics, as well as its airfreight results, as the driving forces behind the growth.
Agility GIL’s first-half EBITDA stood at KWD28.8 million (USD94 million). Net revenue was in line with last year’s performance, despite ocean freight, trade fairs and events posting year-on-year decreases.
Project logistics showed strong performance across all regions, said Agility, posting a 25 percent net revenue increase. This was driven by new capital projects and positive volume development from existing customers.
According to Agility, volumes were down in both air and ocean freight due to lockdowns, production stoppages, and economic contraction across industries and geographies. However, the first half of the year saw higher yields in airfreight, due to capacity shortages and a spike in demand for urgent shipments of PPE and other medical equipment.
First-half 2020 airfreight net revenue increased by 17 percent compared to the same period a year earlier, while ocean freight net revenue decreased 16 percent.
Tarek Sultan, Agility vice chairman and ceo, explained that the economic fallout from the pandemic has had an uneven effect on Agility businesses. Despite its GIL activities recording strong results, the company’s infrastructure group and liquid logistics activities posted declines, while its aviation and airport operations were directly impacted by the decline in air travel and traffic.
As such, Agility’s net profit decreased by 61.3 percent in the first half of 2020 compared to the same period last year.
Sultan said: “The full impact of Covid-19 is not yet clear – there are many possible scenarios and many unknowns – but we are taking steps to weather the storm and emerge stronger. We are adjusting to the reality on the ground within each respective business, and bringing the cost structure in line with the new levels of business we are seeing. We have a strong focus on cash, with a view to having ample liquidity to cover us for the foreseeable future.
“Ultimately, we feel that our long-term vision of infrastructure growth in emerging markets, our growing focus on disruptive technologies and digital enablement for logistics, and expansion into new market segments like e-commerce, is more important than ever.”