KUWAIT CITY: Agility, the leading Arab Gulf logistics group, increased second-quarter earnings by 11 percent, but revenue declined on lower shipping rates and fuel surcharges.
The Kuwait-based company’s net profit rose to 15 million Kuwaiti dinars ($50 million) from 14 million dinars a year earlier as revenue shrank by 6 percent to 309 million dinars from 328 million dinars last time.
We started the year on a good note and are sustaining the momentum as the year progresses,” said Tarek Sultan, Agility’s CEO.
“Within our global integrated logistics business, we are making gains even in the face of a challenging freight forwarding market because we have found ways to be more efficient, improve productivity, demonstrate financial discipline and make operations more responsive to the marketplace and customers’ needs.”
The logistics unit’s revenue dipped 10 percent to 233 million dinars as weakening ocean shipping and fuel surcharges offset record ocean and air cargo volumes.
Driving profit through technology-driven transformation, stronger commercial performance and better efficiency are the centerpieces of Agility’s growth plan for the global integrated logistics business unit, the company said in the first quarter.
The “subdued” outlook for global trade continues to impact the freight forwarding business, but Agility is focusing on growing demand for contract logistics in developing nations, where it has a long-established market leadership, Sultan said.
The infrastructure division boosted revenue by 12 percent in the quarter to 80 million dinars thanks to bulk fuel storage and transport, industrial real estate, airport and ground-handling services.
“Although the external market environment continues to be a challenge, particularly to our commercial logistics business, we are continuing to improve our financial performance by growing our infrastructure portfolio of companies and simultaneously driving transformation of our global integrated logistics business,” Sultan said.
