KUWAITI global logistics giant Agility's second quarter net profit increased 8.1 per cent year on year to KWD21.6 million (US$70 million), drawn on revenues of KWD396.3 million, up 3.2 per cent.
'We had a good second quarter despite the tough environment we operate in. Agility's infrastructure companies performed well, and key initiatives in each business unit are moving ahead according to plan,' said Agility CEO Tarek Sultan.
Earnings before interest, tax, depreciation and amortisation (EBITDA) increased 31.2 per cent to KWD48.6 million.
Global integrated logistics (GIL) division achieved second-quarter EBITDA growth of seven per cent to KWD15.9 million despite higher operating expenses related to new facilities and higher staff costs for operations and commercial requirements.
But gross revenue fell 2.6 per cent to KWD281.9 million, mainly due to currency fluctuations.
'The global air freight market continued to be under pressure,' the company said. 'GIL air freight net revenue decreased 1.8 per cent as the result of lower job volume and tonnage, although the decrease was offset in part by higher yields.
'Second quarter 2019 tonnage fell eight per cent vs second quarter 2018. The decrease was the result of weak market conditions and lower demand across industries and geographies, along with a return to more normal volumes following a spike in high-volume shipments a year earlier. The air freight market was affected by volume declines and shifts that have resulted from US-China tariffs and import restrictions,' Mr Sultan said.
WORLD SHIPPING
'We had a good second quarter despite the tough environment we operate in. Agility's infrastructure companies performed well, and key initiatives in each business unit are moving ahead according to plan,' said Agility CEO Tarek Sultan.
Earnings before interest, tax, depreciation and amortisation (EBITDA) increased 31.2 per cent to KWD48.6 million.
Global integrated logistics (GIL) division achieved second-quarter EBITDA growth of seven per cent to KWD15.9 million despite higher operating expenses related to new facilities and higher staff costs for operations and commercial requirements.
But gross revenue fell 2.6 per cent to KWD281.9 million, mainly due to currency fluctuations.
'The global air freight market continued to be under pressure,' the company said. 'GIL air freight net revenue decreased 1.8 per cent as the result of lower job volume and tonnage, although the decrease was offset in part by higher yields.
'Second quarter 2019 tonnage fell eight per cent vs second quarter 2018. The decrease was the result of weak market conditions and lower demand across industries and geographies, along with a return to more normal volumes following a spike in high-volume shipments a year earlier. The air freight market was affected by volume declines and shifts that have resulted from US-China tariffs and import restrictions,' Mr Sultan said.
WORLD SHIPPING
