A 6 percent decline in revenues didn’t stop Kuwait-based Agility from posting an 11 percent increase in second-quarter net profits, thanks to growth in its infrastructure division. Net profit for the period from April to June climbed to US$49.7 million from $46.4 million, year-over-year. Second-quarter revenue fell 6 percent, y-o-y, from $1.09 billion to $1.02 billion, compared to the same period in 2015.
Agility’s logistics business, which historically has generated much of the company’s earnings, suffered from weak trade conditions and downward pressure on shipping and freight rates. Revenue for Global Integrated Logistics (GIL) was $772.3 million, a 10 percent year-over-year decrease, which the firm blamed on “low shipping and fuel rates in the market.”
Agility’s performance also exceeded the expectations of analysts, according to The National. The logistics company, which also invests in infrastructure and technology projects, exceeded Sico Bahrain’s estimate to the tune of $1 million. Agility’s infrastructure division saw a 12 percent increase in its net profits to $256.16 million.
“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 GIL business,” said Tarek Sultan, Agility’s chief executive.
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