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ADNOC L&S-
Adnoc Logistics and Services (Adnoc L&S) saw its net income jump 34% y-o-y during 1Q 2024 to AED 712 mn (USD 194 mn), according to the logistics unit’s earnings release (pdf). The company logged AED 3.1 bn (USD 870 mn) in revenues for the quarter, marking a 42% y-o-y increase.
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The growth comes on the back of what the company says is a successful growth strategy, which will see it invest over USD 5 bn to raise its valuation over the medium term and integrate AI in its operations, in a bid to boost “operational efficiency, safety, and sustainability goals.“
Growth projections: Adnoc’s logistics division expects 30% revenue growth over the medium term, surpassing earlier projections of “mid-to-high single-digit percentage growth.” Moreover, the company expects bottom line growth to be in the low 20% range in 2024, while targeting net income growth in the “low-teens” in the medium term.
DUBAI TAXI-
Dubai Taxi’s net income grew 15% y-o-y to AED 108 mn in 1Q 2024, according to the company’s earnings release (pdf). Growth came despite the introduction of corporate tax during the quarter, and amid the company doubling its fleet size with the acquisition of 94 new taxi licenses. Excluding the tax impact, Dubai Taxi’s bottom line increased 26% y-o-y.
The company booked AED 558.4 mn in revenues, climbing 16% y-o-y on the back of better performance across its business segments, and boosted by more trips, longer trip lengths, and higher tariffs.
Looking ahead: “Looking ahead, we are confident in the steady growth of Dubai’s population underpinned by strong economic fundamentals and its status as a leading business and leisure destination. In addition to our plans to grow further in Dubai, we see attractive opportunities to expand and broaden our services in neighboring emirates,” CEO Mansoor Rahma Alfalasi said.
REMEMBER- Dubai Taxi debuted on DFM last year: Dubai’s Roads and Transport Authority listed Dubai Taxi on the DFM in December, raising AED 1.16 bn on the back of heavy investor appetite, with orders covering the transaction 130x.
EMSTEEL-
Emsteel posts lower growth, revenues in 1Q: Emirates Steel Arkan (Emsteel) saw its net income slump 16% y-o-y to AED 128 mn in 1Q 2024 on the back of lower exports amid heightened freight prices, according to its financial statements (pdf). The steel manufacturing firm reported an 11% y-o-y drop in revenues to AED 2.13 bn.
Reasons behind the drop in performance: A decline in global steel prices on the back of China’s economic slowdown and European investors’ faltering confidence, coupled with the Red Sea shipping disruptions that resulted in higher freight costs, resulted in challenging conditions for its exports business,the company said in its earnings release (pdf).
DANA GAS-
Sharjah’s Dana Gas saw its net income fall 24% y-o-y to AED 139 mn in 1Q 2024 on the back of lower oil and gas prices, it said in its earnings release (pdf). Revenues also saw a 20% y-o-y decline to AED 356 mn.
Iraq’s Khor Mor attack might impact its KM250 project: While the company resumed normal output levels at its Khor Mor gas field in Iraq’s Kurdistan region, after halting production due to a drone attack that hit the field late in April, the company anticipates that the attack might impact the completion schedule of their KM250 project.
Background: The KM250 project is a USD 806 mn expansion within the Kurdistan Gas Project, led by Dana Gas, Sharjah-based Crescent Petroleum, and the Kurdistan government, aimed at increasing gas production and supply in the Kurdistan region of Iraq. The project was scheduled for completion in April 2024.
What they said: “Prior to the incident, we realized profits during the quarter despite lower condensate prices and reduced output from Egypt. In the [Kurdistan region in Iraq] we posted strong production numbers as our plant continues to produce above the 500 mn standard cubic feet per day (MMscf/d) level it had reached at the end of last year,” Dana Gas CEO Richard Hall said.
ARADA DEVELOPMENTS-
Sharjah-based and Nasdaq-listed real estate developer Arada Developments saw its net income dip 8.5% y-o-y to AED 311 mn in 2023, according to its financials (pdf). The developer’s revenues rose 11.5% y-o-y to AED 2.77 bn during the year.
SUKOON INS.-
Sukoon Ins.’ net income rose 20% y-o-y to AED 81.7 mn in 1Q 2024, according to the company’s financials (pdf). The company’s ins. revenues rose 15.8% to AED 1.23 bn during the quarter.
AMLAK FINANCE-
Amlak Finance’s net income rose 93% y-o-y to AED 27 mn in 1Q 2024, according to an earnings release (pdf). The financial services provider’s revenue fell 9% y-o-y to AED 68 mn during the quarter. The company’s operating costs stood at AED 23 mn in 1Q 2024, down 23% y-o-y.
The company repaid AED 23 mn in debt to financiers during the quarter, and is currently in advanced negotiations with its remaining commercial financiers to exit a common terms agreement initially inked in 2014.
