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There seems to be no end in sight for 2Q earnings reports from our regional players, with four more firms reporting their results this quarter. Let’s jump right in.
ETIHAD AIRWAYS-
Etihad Airways saw its income after tax climb 48% y-o-y to AED 851 mn in 1H 2024, according to an earnings release. The Abu Dhabi-based carrier’s revenues rose 21% y-o-y to AED 11.7 bn (USD 3.2 bn) during the same period.
Behind the numbers: Etihad Airways recorded solid cargo and passenger revenues, which it attributed to network expansions and enhanced connectivity. The carrier saw a 10% y-o-y increase in cargo revenues fueled by increased demand and cargo fleet capacity, and a 38% y-o-y increase in passenger numbers to 8.7 mn — almost three-times higher than the IATA’s reported average growth rate of 13% for Middle Eastern carriers during 1H 2024.
More to come? Etihad Airways welcomed 16 more aircraft since last year, including three A321neos, bringing its fleet size to 92. The airline is also expecting to add over 20 new generation aircraft to its fleet in the next 18 months. The carrier has expanded its destinations around the world from 70 to 81 as well as increasing its partnerships, according to the statement.
Etihad has been on a roll: Etihad Airways saw its income after tax rise 791% y-o-y to a record AED 526 mn in 1Q 2024, and booked AED 5.7 bn in revenues for the quarter, up 21% y-o-y, driven by 41% increase in passenger numbers. Etihad’s parent company ADQ is potentially going after both a traditional IPO and direct listing on ADX at the end of the year, with the offering expected to raise as much as USD 1 bn.
ARAMEX-
Emirati logistics outfit Aramex’s net income fell 83% y-o-y to AED 3.1 mn in 2Q 2024, according to its financial statements (pdf). In a separate earnings release (pdf), Aramex attributed the y-o-y decrease to seasonal challenges in 2Q — including adverse weather conditions and public holidays — resulting in slower business activity and fewer operational working days. The seasonal impact is estimated at AED 45 mn in lost revenues and AED 8.8 mn in lost net income. The company recorded AED 1.5 bn in revenues, up 8% y-o-y.
On a six-month basis, Aramex saw its bottom line rise 17% y-o-y to AED 49.8 mn. The company’s top line also increased 8% during the same period to AED 3.04 bn, buoyed primarily by new clients and improved sales, especially in international and domestic express operations.
Looking ahead: “Aramex is poised to sustain its growth momentum across key product lines in the second half of the year,” the release said, adding that the company will continue to make strategic investments in infrastructure and talent to broaden its customer base. Full-year revenues are projected to grow at 8-9% in 2024.
ABU DHABI AVIATION CO-
Abu Dhabi Aviation’s (ADA) net income reached AED 695.4 mn in 2Q 2024, up from the previous AED 15.7 mn net loss recorded in 2Q 2023, according to the company’s financials (pdf). The company’s revenues reached AED 1.55 bn, up 3.3% y-o-y during the period.
On a six month basis, ADA’s net income reached AED 722.2 mn in 1H 2024, up 612% y-o-y. The company’s revenues amounted to AED 3.23 bn during the period, down 4.4% y-o-y on the back of “operational streamlining at newly acquired businesses,” ADA said in a separate earnings release (pdf).
Acquisitions boosted numbers: ADA completed an acquisition of stakes in three aviation firms from ADQ subsidiary ADQ Aviation in a transaction valued at AED 4 bn back in May. ADQ Aviation transferred stakes in three companies — 100% of Etihad Airways Engineering, 100% of Advanced Military Maintenance Repair and Overhaul Center (Ammroc), and 50% Global Aerospace Logistics (GAL).
A segment-by-segment breakdown: ADA’s General Aviation segment recorded a 1.7% y-o-y decrease in net income to AED 219 mn, while its revenues saw a 0.22% y-o-y increase to AED 1.2 bn. The maintenance, repair, and overhaul segment was bolstered due to the recent acquisitions, which saw the addition of over 9.6k employees and widened service offerings to meet the growing demand across MENA and globally. ADA’s Investments division saw a 9.1% y-o-y jump in revenues to AED 12.5 mn.
ADNOC DISTRIBUTION-
Abu Dhabi National Oil Company (Adnoc) Distribution reported a 12.9% y-o-y increase in net income attributable to shareholders to AED 622.8 mn in 2Q 2024, according to its financials (pdf). The company’s revenues rose 8% y-o-y to AED 8.78 bn, driven by increased fuel volumes and higher selling prices on the back of rising crude oil prices and growth in non-fuel retail business, Adnoc Distribution said in its earnings report (pdf).
On a six-month basis, Adnoc Distribution saw its net income attributable to shareholders rise 7% y-o-y to AED 1.17 bn, attributable to the increased field volumes and selling prices and the consolidation of TotalEnergies Marketing Egypt. The fuel retailer booked AED 17.5 bn in revenues, increasing 8.7% y-o-y in 1H 2024.
The logistics angle: AI deployment is set to fuel Adnoc’s growth, with the company currently pursuing 20 AI projects with global AI partners to strengthen its market position. Among those projects is the Fuel Demand AI Model, which uses predictive analytics to refine Adnoc’s fuel delivery schedules, potentially saving USD 34 mn in revenue over the next five years.
Export plans: Adnoc’s automotive vehicle lubricants Adnoc Voyager — which launched in Egypt through TotalEnergies Marketing Egypt back in 2023 — saw an increase in export markets reaching 43 countries in 1H 2024, compared to 32 markets during the same period last year. The firm is looking to expand the brand into new markets and start blending the lubricants in Egypt this year with the intention of establishing a regional export hub.
Looking ahead, the fuel retailer plans to invest between USD 200-300 mn in CAPEX during 2024, with 70% of the sum to be allocated towards “growth-focused initiatives.”
