Company’s built-to-suit warehouses selected as national winner
KUWAIT – April 18, 2019 – Agility, a leading global logistics provider, has been selected as the Kuwait national winner in the Industrial Project of the Year category at the 2019 MEED Projects Awards, presented in association with Mashreq.
Agility Logistics Parks received the award for its ‘4 BTS Warehouse’ project for one of the largest retail companies in Kuwait. The built-to-suit warehouses covered over 70,000 sqm of warehouse floor space and were completed in a 12-month timeframe, including design and construction.
Michel Saab, CEO of Agility Logistics Parks, said: “Agility has significant experience designing and building logistics parks and warehouses around the world. Our experience means we were well-placed to deliver this large scale project to our customer. Winning this award further solidifies our strong market position as a leader in building and managing world-class facilities and infrastructure that help companies operate in the world’s fastest-growing markets.”
During the design phase of the project, Agility took into consideration measures to minimize water and electricity usage to the minimum. The warehouse was outfitted with LED lighting and water sensors, and excess water from air conditioning units was reused for irrigation. In addition, the design and execution of warehouse’s slab flooring used steel fibers and jointless slabs to minimize maintenance costs and possible operation disruptions for the customer.
Richard Thompson, Editorial Director, MEED, said: “This year the judging panel reviewed a record number of entries from across the GCC, which affirms yet again the robust projects market in the region, amidst the challenging business landscape. Competition has been tough, and it’s great to see a strong commitment not just in completing projects, but also in meeting very stringent quality standards. Congratulations to all our national winners.”
Agility’s 4 BTS Warehouses project will now be reviewed against its Gulf rivals for the GCC honors to determine the final winners of the 2019 MEED Projects Awards.
One of six companies positioned to handle movement of assets, personnel
WASHINGTON, DC – May 12, 2020 – Agility Defense & Government Services (DGS) is among the companies chosen for a position on a new U.S. Army contract to manage movement of troops, equipment and related material throughout Europe.
The contract, awarded by the Army’s 21st Theater Sustainment Command based in Kaiserslautern, Germany, takes effect this month and is a three-year, indefinite delivery/indefinite quantity (IDIQ) contract vehicle with a value not to exceed $49 million.
The contract is intended to help meet the requirements of the growing presence of U.S. forces in Europe. U.S. forces and their allies have been conducting an increasing number of joint exercises in Eastern Europe and the Baltics.
Agility DGS is one of six companies positioned to provide transportation services for U.S. Army assets and personnel within the European theater, along with support for unit deployments to Europe from the United States, and returning after deployments.
Agility DGS is currently the sole provider of oversized and overweight cargo transportation (ground) services for the UK Ministry of Defence (MoD) under a heavy haul contract and provides transportation for 8,000 passengers a year on Cyprus under a separate MoD contract.
Separately, Agility DGS this month began work on two UK MoD contracts to manage the sale and disposal of aviation platforms, equipment and spares, and other surplus military equipment and property.
Global Response Aid to manage ‘ethical supply chain’ for governments, medical facilities, NGOs, private companies
DUBAI – May 8, 2020 – Agility, a leading global logistics provider, has launched Global Response Aid (GRA), a Dubai-based company established to procure certified diagnostic, testing and protective products and offer services such as a contact-tracing app and mobile testing used in the detection, treatment and prevention of COVID-19.
GRA works directly with trusted manufacturers around the world to source safe, effective products for governments, health authorities and public institutions; frontline medical facilities such as hospitals and clinics; non-government organizations involved in the COVID-19 fight; and companies looking to safeguard their workers and workplaces.
GRA-sourced products include top-quality ventilators, thermal detection equipment, thermometers, masks, goggles, protective suits, cleaning and sanitation supplies, and new point-of-care test kits that can take pressure off hospital emergency rooms.
A mobile phone app developed by GRA helps stop the spread of the virus through community-driven contact tracing and alerts. The app offers users the ability to record, time stamp, and geo-reference test results.
GRA also is deploying Mobile Diagnostic Testing Vehicles and trained teams that can perform COVID-19 testing safely on site at schools and workplaces.
The four-year awards include sales and disposal of platforms, military equipment and spares
LONDON – May 1, 2020 – Agility Defense & Government Services (DGS) began work May 1 on two four-year contracts to deliver solutions for the Defence Equipment Sales Authority (DESA), a part of the UK Ministry of Defence (MOD).
The first contract is to sell and dispose of UK armed forces aviation platforms, equipment and spares. It has a potential throughput of $17 million. DESA is the arm of MOD authorized to sell surplus military equipment and inventory.
Under terms of the first contract, DGS will handle the sale and disposal of aircraft, aircraft spares, training aids and ground support equipment, along with other military equipment and spares such as communications systems. DGS performed similar work for DESA for five years as a subcontractor before selection as prime contractor under the new award.
Agility DGS will collect equipment and spares from the MOD in the UK. Sales will be made worldwide, subject to applicable export controls.
To fulfill the scope of work, Agility DGS will use a customised IT system to target buyers in aerospace businesses. It also has developed databases to sanitise, cross-reference, and manage the inventory. Collection, sales and reporting activity is managed with the same database, which has been tailored to the requirements of the contract.
The second contract is to collect, demilitarise and sell surplus military equipment and property. This includes disposal of surplus assets in operational and non-operational locations outside of the UK and has a potential throughput of $12.8 million over the four years.
This contract includes disposal of surplus assets in operational and non-operational locations outside of the UK. DESA handles the disposal of all materiel that can generate revenue within the UK and overseas, including aircraft, aircraft spares, ships, boats, river craft and other marine vessels and spares, military, domestic vehicles and hazardous waste removal with the exception of nuclear, domestic waste and infrastructure.
Agility DGS had held the DESA Middle East overseas disposal contract since 2012 and was initially focused on the draw-down of the UK armed forces in Afghanistan.
Under terms of the second contract, the global overseas sales and disposals agreement will be managed from Agility DGS’s Stoke-on-Trent facility in the UK, utilizing a customised Quantum ERP system to track inventory, manage the sales process and provide reporting.
Efficient disposal of the surplus inventory saves the MOD and UK taxpayers from the expense of shipping items back to the UK for disposal. Agility DGS will arrange for shipment of valuable items elsewhere if sales are not feasible in local markets.
“We are pleased to begin these two contracts with DESA and look forward to a fruitful continuing association with the UK MOD,” said Gareth Webberley, Vice President of Agility DGS Europe. “Our innovative solutions for sales, disposal, recycling and reporting, coupled with Agility’s global footprint, will complement the vital work DESA and the wider MOD are doing on the global stage.”
Emirates operated a special charter on its Boeing 777-300ER aircraft to transport 50 tonnes of hazelnut paste
Emirates SkyCargo, working in partnership with Agility, deployed a Boeing 777-300ER aircraft on a unique mission to transport close to 50 tonnes of fresh hazelnut paste from Istanbul to Melbourne via Dubai. The special consignment was uplifted by flight EK 122 from Istanbul to Dubai and then on flight EK 406 from Dubai to Melbourne on 17th April. Turkey is a world leader in the production of hazelnuts which is a key ingredient in the manufacture of many confectionary products.
Hiran Perera, Emirates senior vice president, cargo planning & freighters said: “Emirates SkyCargo has always prided itself on being an important connector of goods that touch people’s lives. We are currently working flat out every day to transport hundreds of tonnes of medical supplies to help combat the Covid-19 pandemic across the world on our aircraft. So, we were especially delighted to partner with Agility to execute a special charter to fly in some delicious hazelnut paste from Turkey which is sure to bring cheer to customers in Australia.”
“Agility is proud of its collaboration with Emirates airline and the VIP customer we worked to serve together. This shipment was a race against time. The teamwork demonstrated the effectiveness of highly skilled professionals, all of them focused on the need to “keepcargomoving” said Michael Blaufuss, SVP Global Air Freight at Agility.
Emirate SkyCargo is currently transporting cargo across a global network of 50+ scheduled destinations using its Boeing 777 freighters and Boeing 777-300ER passenger aircraft. The air cargo carrier has transported more than 20,000 tonnes of pharmaceuticals and more than 93,000 tonnes of perishables on its flights since January.
Machine brings vital care closer to home for Maldivians
MUMBAI, India – April 22, 2020 – Agility, a leading global logistics provider, recently teamed with Chapman Freeborn Airchartering to deliver CT scan and MRI machines to Malé, capital of the Maldives.The Ministry of Health in Maldives ordered approximately 41 tons of cargo consisting of MRI, CT scan machines and other health equipment for distribution to four different hospitals across the chain of islands and atolls that make up the nation.
Agility airlifted the cargo into Dubai from various locations in the USA, China, France, Japan and India.
The seamless movement of more than 287 pieces from five countries into Dubai was a challenge, especially when availability of flights and space became limited due to the COVID-19 outbreak.
Agility worked with Chapman Freeborn and chartered a B747 freighter from Al Maktoum International Airport in Dubai. Using B747 aircraft provided significant cost savings when compared with alternatives such as the Antonov An124 or the smaller Ilyushin Il-76 aircraft, which would have required three separate flights.
Satish Lakkaraju, Chief Commercial Officer of Agility India, said: “From the countries of origin, to the consolidation point in Dubai and to the final destination in Male, we were pleased to have such talented people working on this global project. We knew how vitally important this equipment is to the health of the people in the Maldives. We thank our Agility Dubai team and our trusted global partner, Chapman Freeborn, for expertly handling all challenges that arose. The timely execution of this shipment is another example of Agility’s commitment towards patient safety.”
Vikas Chaturvedi, Chapman Freeborn’s Dubai Commercial Manager-Cargo, said: “Once again we’re very proud to have successfully executed another charter flight to Maldives on behalf of Agility. Transporting this type of medical equipment on short notice requires careful planning and close attention to detail. Our strength is the global aviation professionals working with Agility and Chapman Freeborn. We want to thank our partners and colleagues Afsar Ali and Ayshil Chandra for their valuable support.”
Mohammed Esa, Agility GIL SVP of Global Business Development, recently joined executives from DB Schenker on a Gartner panel that looked at the impact of coronavirus on shippers and freight movements.
Four-year award includes demilitarisation, recycling and disposal of surplus assets
LONDON – March 16, 2020 – Agility Defense & Government Services (DGS) was awarded a four-year contract to collect, demilitarise and sell surplus military equipment and property overseen by the Defence Equipment Sales Authority (DESA) of the UK Ministry of Defence.
The contract includes disposal of surplus assets in operational and non-operational locations outside of the UK and has a potential throughput of $12.8 million over the four years.
DESA is the UK MoD arm authorised to sell surplus military equipment and inventory. DESA handles the disposal of all materiel that can generate revenue within the UK and overseas, including aircraft, aircraft spares, ships, boats, river craft and other marine vessels and spares, military and domestic vehicles, with the exception of nuclear, domestic waste and infrastructure.
Agility DGS had held the DESA Middle East overseas disposal contract since 2012 and was initially focused on the draw-down of the UK armed forces in Afghanistan. The latest award expands Agility DGS’s work to include any location globally where the UK MoD have a presence. The new scope of work begins May 1.
Under terms of the contract, the global overseas sales and disposals contract will be managed from Agility DGS’s Stoke-on-Trent facility in the UK, utilizing a customised Quantum ERP system to track inventory, manage the sales process and provide reporting.
Efficient disposal of the surplus inventory saves the MoD and UK taxpayers from the expense of shipping items back to the UK for disposal. Agility DGS will arrange for shipment of valuable items elsewhere if sales are not feasible in local markets.
“In this contract, we outlined the core processes we have developed and refined over seven years of operational delivery,” said Gareth Webberley, Vice President of Agility DGS Europe. “We proposed innovative solutions around the top-level activity management for sales, disposal, recycling and reporting, coupled with Agility’s global footprint and use of the web to broaden our customer reach.”
North Asia chief Soren Poulsen will head up Asia-Pacific operations
BAAR, Switzerland – Feb. 27, 2020 – Agility, a leading global logistics provider, announced today that the CEO of its Global Integrated Logistics (GIL) business, Essa Al-Saleh, will be stepping down after thirteen years in the role and twenty two years with the company.
He will be succeeded by industry veteran Chris Price, who will become GIL CEO on May 1.
“I am truly grateful to Essa for his foundational role in making Agility a leading player in our industry. His partnership, dedication, and commitment to Agility’s journey stand out,” said Tarek Sultan, Agility Vice-Chairman and CEO.
Al-Saleh leaves the company to pursue personal interests, but will continue to offer advisory support.
“Essa’s legacy is spearheading 40+ acquisitions and integrating these businesses into a single network of more than 18,000 employees, operating in 100+ countries, and contributing near $4 billion in revenue,” Sultan said. “Essa is a true leader: he built a strong company culture while driving consistent improvement in growth and profitability. He leaves Agility GIL in a position of strength.”
Successor Chris Price currently heads Agility’s nearly $1.5 billion Asia Pacific logistics business and has been with the company for thirty-six years. Before becoming Regional CEO for Asia, Price served in multiple leadership roles, including CEO Netherlands, CEO for the UK and Ireland, and CEO for Northern Europe, which included the Nordic countries.
“Chris has demonstrated extraordinary skill and leadership at every step. He is customer-centric and experienced in leading high-performing teams,” said Agility CEO Tarek Sultan. “Chris brings strategic vision and deep operational understanding to this role. His strong relationships in our business and with customers will help ensure a smooth transition.”
Soren Poulsen, currently head of Agility GIL North Asia, will succeed Price as regional CEO for Asia-Pacific. Poulsen joined Agility in 2014 as CEO Greater China, and later assumed the role of Area CEO for North Asia which includes Japan, Korea & Taiwan.
In addition to freight forwarding and contract logistics, Agility GIL also provides specialized logistics for projects, chemicals, and fairs and events. GIL also acts as a partner for Shipa Freight, the online freight forwarder founded by Agility to serve small and medium-size companies.
Figures in the table above have been rounded
KUWAIT – February 22, 2020 —Agility, a leading global logistics provider, today reported 2019 net profit of KD 86.8 million, or 52.14 fils per share, an increase of 7% from 2018. Revenue for the year reached KD 1,578.6 million and EBITDA was KD 193.1 million, increases of 1.8% and 24.7%, respectively.
For the fourth quarter 2019, Agility reported a net profit of KD 23.2 million, or 13.93 fils per share, an increase of 4.4% over Q4 2018. EBITDA for Q4 2019 was KD 50.7 million, an increase of 24.3%, revenue remained flat.
Board of Directors Recommendation
Agility’s Board of Directors has recommended a cash dividend distribution of 20% (20 fils per share), along with 10% bonus shares (10 shares for every 100 shares), subject to approval of the General Assembly.
Agility Consolidated Results
Agility continues to deliver growth despite regional and economic challenges. In 2019, EBITDA grew by 5.6% (pre-IFRS16), following three consecutive years of double-digit growth.
“Global trade tensions, regional economic uncertainty, and financial market pressure in emerging markets all contributed to a challenging year for our logistics business. Internally, the costs associated with our investment in digitization also had an impact; one that we believe will continue in 2020,” said Tarek Sultan, Agility Vice Chairman and CEO. “Driving operational efficiency and better customer service through digitization continue to be a priority. It is an investment in our future.”
Beyond digital, emerging markets also remain a key investment focus. This includes building logistics parks across the Middle East and Africa, the Reem mega-mall project in Abu Dhabi, bringing on new ocean vessels and fuel farms through our fuel logistics subsidiary, and growing rapidly in Africa through our airport services subsidiary.
“We move into 2020 cognizant that we are likely to see volatility in the global economy that may impact our logistics business, as well as slower market activities in certain markets in the Middle East and Africa that may affect certain portfolio companies. That said, we are confident that despite these challenges, we are well-positioned to navigate through them,” Sultan said.
Agility Global Integrated Logistics (GIL)
(All numbers in this section are pre-IFRS 16)
For the full year 2019, GIL EBITDA was KD 35.4 million, a 1.4% decline from 2018. This decline was mainly driven by the costs associated to the acceleration of the digital transformation.
Year-to-date net revenue improved 2.9%. Net revenue growth was driven by strong Freight Forwarding yields; higher warehouse utilization and new facilities in Contract Logistics; and greater contributions from specialty products (Project Logistics and Fairs & Events). GIL consistently executed well on its commercial strategy, showing growth with selected industry verticals that are strategic priorities such as Life Sciences.
Full year 2019 revenue fell 2.5% and remained flat on a constant currency basis. 2019 was a challenging year for the freight forwarding industry as a whole. According to IATA, 2019 witnessed the lowest air freight volumes since 2009. Full Year Air and Ocean Freight volumes decreased by 6.8% and 0.6% vs. 2018 driven by declining market demand, but were offset by higher yields.
GIL fourth quarter EBITDA was KD 10.9 million, a 3.8% decline from same period in 2018. The decrease was due to higher operating expenses related to new Contract Logistics facilities, as well as investments in digital transformation.
GIL’s Q4 net revenue was KD 70 million, a 3.3% increase vs. Q4 2018. The net revenue increase was driven mainly by growth in Project Logistics, Contract Logistics and Fairs & Events. The overall net revenue margin improved to 24.8% in Q4 2019 vs. 23.1% in Q4 2018. GIL gross revenue was KD 282.7 million, a 3.7% decline (or 2.6% decline on a constant currency basis) from same period in 2018.
Q4 Air Freight volume decreased by 7% (in tonnage) as a result of falling trade volumes and lower demand from customers across industries and geographies. This decline in volume was partially offset by higher yields – expressed as net revenue/ton – which increased 1.1% from same quarter last year.
Ocean Freight TEUs grew 1.9%, but Q4 yields declined 2.2% vs. the same period in 2018. GIL Ocean Freight yields were strongest in the Americas and Europe.
Contract Logistics achieved healthy growth, mainly in the MEA Region (Kuwait, Saudi Arabia) but also in the US, Australasia and Singapore. Project Logistics also showed solid growth in multiple countries.
To strengthen performance and its market differentiation, GIL is implementing its digital strategy. By accelerating its digital transformation, GIL intends to enhance customer and supplier connectivity, create innovative customer solutions, increase the efficiency of its business processes, and enable comprehensive business insight.
Agility’s Infrastructure Companies
(All numbers in this section are pre-IFRS 16)
For full year 2019, Infrastructure group’s EBITDA grew 7.7% and revenue increased 14% and for the last quarter of 2019, EBITDA grew 6.1% and revenue increased 12.8%. Agility is investing in these companies to drive its future growth.
Agility Logistics Parks (ALP) reported 14.9% revenue growth for the year, despite challenging market conditions. In Kuwait, ALP’s focus is driving the efficiency and optimizing the use of existing assets. In Riyadh, Saudi Arabia, ALP completed another 120K sqm of warehousing space in 2019. In Africa, developments in ALP Ghana Phase III and Phase I in both Mozambique and Ivory Coast are approaching completion.
Tristar, a fully integrated liquid logistics company, posted 10.9% revenue growth in 2019, mainly from Fuel and Maritime improvements. Fuel sales increased mainly in Africa and Yemen. Additionally, improvements were realized in the Road Transport and Warehousing (RTW) segment coming from new contracts. Tristar is focusing on a growth strategy across all business segments. New vessels in the Maritime segment are expected in second half of 2020. RTW will continue to ramp-up existing contracts with mining companies and oil majors. In addition, Tristar is investing in new fuel farms in Africa.
National Aviation Services (NAS), the fastest growing aviation services provider in emerging markets, grew revenue by 7.8% in 2019. Favourable market conditions in some markets where NAS operates, coupled with successful turnaround efforts, contributed to this growth. As part of its strategy to expand within the African Continent, NAS is in the process of launching new operations in several new markets.
United Projects for Aviation Services Company (UPAC), a leading real estate and facilities management company operating in Kuwait, posted 2.2% revenue decline in 2019 compared with same period in 2018. UPAC operations are still being affected by the shift in passenger traffic to dedicated airline terminals at Kuwait International Airport. UPAC has been able to partially offset the impact by generating new revenue from car park management operations in (T4) and through the strong performance of its real estate management operations in Kuwait. In Abu Dhabi, construction continues to progress on Reem Mall, a $1.2 billion project.
GCS, Agility’s customs modernization company, posted 8.8% growth in revenue in 2019. This was driven by new brokerage business and other services to support its core business. GCS is implementing initiatives to drive efficiency and improve profitability.
Since 2011, Agility’s EBITDA reported a 14% compounded annual growth rate and generated a 25% IRR to its shareholders.
“We are proud that in addition to our financial performance, we are focused on driving innovation in our industry and enhancing our digital logistics offering. We also continue to make strides in our sustainability goals,” Sultan said.
“We will continue to invest in the business to drive efficiency and seed future growth, even as we confront concerns about downward pressure on global trade volumes, uncertain growth prospects, and ongoing trade frictions between large economies. As always, we thank our employees, our customers, our shareholders and our partners for their engagement and support.”
Financial Performance for the full year 2019
Agility’s net profit stands at KD 86.8 million, a 7% increase from KD 81.1 million in 2018. EPS was 52.1 fils, compared with 48.7 fils a year earlier.
EBITDA was KD 193.1 million, a 24.7% increase from 2018.
Agility’s revenue for 2019 was KD 1,578.6 million, an increase of 1.8% from KD 1,550.2 million in 2018. Net revenue increased by 6.7%.
GIL’s revenue was KD 1,124.6 million, a 2.5% decline from 2018. However on a constant currency basis it remained flat compared to last year.
Infrastructure group revenue was KD 469.7 million, compared with KD 412 million in 2018, a 14% increase from last year.
Agility enjoys a healthy balance sheet with KD 2,082.1 million in assets. Its net debt position was KD 308.2 million as of Dec. 31, 2019. Operating cash flow was KD 151.5 million for full year 2019.
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