By: Mahmoud Gamal
Dubai-Mubasher: The UAE’s listed three transportation companies posted a 4.7% rise year-on-year in their profits during the second quarter of 2016, backed by positive results of Gulf Navigation Holding and Aramex.
The three firms generated profits of AED 271.80 million in Q2-16, compared to AED 259.66 million ($70.68 million) in Q2-15.
The sector’s positive Q2 profits were supported by declining oil prices which brought the companies’ logistics costs down and operating revenues rose as a result, gulf markets analyst Badr Al Dhafiri said.
The three companies’ combined revenues amounted to AED 2.07 billion in Q2-16, up 10.1% from AED 1.88 billion in Q2-15.
Higher demand on the sector’s marine, land and air services improved the sector’s business operations, Al Dhafiri added.
Gulf Navigation Holding reported that its net profits grew 57% to AED 8.02 million ($2.2 million) in Q2-16 from AED 5.11 million ($1.4 million) in the prior-year period.
The company’s profits were boosted by its portfolio rearrangement and entry of new investors through the acquisition of 6.01% of its capital by Abu Dhabi Financial Group (ADFG), Al Dhafiri noted.
Aramex reported a 36% growth in its profits to reach AED 125.7 million ($34.22 million) in Q2-16, compared to AED 92.5 million ($25.18 million) in Q2-15.
On the flipside, Air Arabia reported a 13.5% decline year-on-year in its net profits to reach AED 131.05 million in Q2-16 due to a rise in its costs to AED 731.37 million.
In H1-16, the three firms’ profits increased 11% to AED 496.22 million from AED 446.99 million in H1-15.
Most of transportation firms are expected to maintain positive financials in H2-16, Al Dhafiri said.
Translated by: Julian Nabil
