Agility, a company from Kuwait, will invest $67 million to expand a logistics park in Riyadh.
Kuwait- and Dubai-listed logistics company Agility announced that it will invest $67 million (SAR 250 million) to expand its warehouses in Riyadh, according to a statement on Monday.
Expansion in Riyadh
The project will be handled by Agility Logistics Parks (ALP), a part of Agility. The expansion will add 100,000 square meters of storage space, bringing the total size of the logistics park to 551,000 square meters, as reported to the Dubai Financial Market (DFM).
Michel Saab, the global CEO of Agility Logistics Parks, said, “This expansion isn’t just about increasing our storage space. It will also boost Saudi Arabia’s logistics industry and encourage international companies to grow their business in the country.”
ALP currently operates warehouses in Riyadh and Dammam and is investing over $162.7 million (SAR 611 million) to build another facility near Jeddah.
The newly expanded Riyadh facility is expected to start operations in early 2025.
Q2 Performance (Simple English)
Agility’s revenue for the second quarter of 2024 increased by 14.5% compared to the same period in 2023. It reached $1.2 billion (KD 375.4 million), up from $1.1 billion (KD 327.9 million) last year.
The company made $125.9 million (KD 38.6 million) in earnings before interest and taxes (EBIT), which is 3% more than last year’s Q2.
Agility’s net profit for this quarter was $19.6 million (KD 6 million), or $0.78 (KD 0.24) per share. However, the company explained that this number isn’t directly comparable to last year’s result because of changes caused by sharing profits with minority shareholders through special dividends.
For the first half of 2024, Agility earned $80.6 million (KD 24.7 million), or $3.2 (KD 0.98) per share. Its EBIT for the six months went up by 11% to $275.9 million (KD 84.6 million), and revenue grew 9.8% to $2.3 billion (KD 711.7 million).
Other Contracts
Agility kept expanding its business in the first half of 2024. In Kuwait, it got a 17-year contract to manage the Messila Beach Site Project (Plage-2) through its subsidiary, UPAC, the company announced in August.
Agility’s subsidiary, S2, is also leading a 30-year contract for the South Village project in Sabah Al-Ahmad City. This is Kuwait’s first combined logistics and crafts zone, covering 1.28 million square meters.
Another subsidiary, Menzies, reported strong growth in earnings, thanks to business expansion across the Americas, Europe, the Middle East, Africa, and Asia. It also gained new contracts and started new operations, boosting its profits.
Forbes Ranking
Agility is ranked 66th on Forbes Middle East’s Top 100 Listed Companies 2024. Its Vice Chairman, Tarek Sultan, is 3rd on the Sustainability Leaders 2024 list. Last year, the company was 3rd in the Transport & Logistics category for sustainability.
Published: 14 October 2024
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