Please find below Agility’s statement to the Stock Exchange:
Alcazar Capital Partners – one of Agility’s subsidiaries – filed a lawsuit based on grounds that, on 11 September 2007, the Kurdistan Regional Government in Iraq submitted to Alcazar Capital Partners a letter of guarantee to guarantee a loan amounting to two hundred fifty million US dollars plus interest at the rate of 7% annually, this loan is provided by Alcazar Capital Partners to Korek Telecom (a company established according to the laws of the State of Iraq and registered in the Kurdistan region), to be used for the purpose indicated in the guarantee, in order to finance the payment of the second installment of the price of the national mobile phone license that covers Iraqi territories awarded to the said company.
The guarantee offered by the Kurdistan Regional Government in Iraq provides that the guarantee is joint or several with Korek Telecom, thereby giving the absolute right to Alcazar Capital Partners to file a claim against the Kurdistan Regional Government of Iraq independently. This is a matter that relates strictly to the guaranteed company under the above guarantee as long as it was agreed in the guarantee to direct the claim separately against the guarantor.
Therefore, Alcazar Capital Partners requests the engagement of the experts department at the Ministry of Justice in order to delegate one of its specialized experts to review the case’s file and its documents, and to issue a report in respect of the value of the sums owed to AlCazar Capital Partners by the Kurdistan Regional Government in Iraq. The sums represent the loan and its accumulated interest at the interest rate determined in the guarantee, from the date of granting the loan and the guarantee on 11 September 2007 until payment, in addition to the fees, expenses and actual attorney fees.
Investor Relations Team
We wish to inform you that the quarterly Analyst/ Investors Conference was held through a Live Webcast at 2:00 pm local time on Thursday, 20 May 2021.
Please refer to the attachment for the minutes of the conference and the Investor presentation (Q1 -2021)
Investor Relations Team
KUWAIT, 23 May 2021 – Agility, a leading global logistics provider, held today its Extraordinary General Assembly Meeting with a quorum of 75.8%
The company’s shareholders approved the item on the agenda, approving the sale agreement of Agility’s Global Integrated Logistics (GIL) business to DSV Panalpina A/S. The acquisition will be an all-share transaction and closing is expected in the third quarter of 2021. Agility will become the second largest shareholder in DSV with an approximate 8% stake in the combined company.
Tarek Sultan, Agility’s Vice-Chairman, said: “For some years, Agility has made it known that consolidation is a priority for our logistics business. The timing is right to act now: the logistics industry is getting more competitive, DSV and GIL have good complementarity, and this deal will give Agility a stake in of the one of the largest and most profitable freight forwarding and logistics companies.”
He added: “Agility will be exploring opportunities between DSV and its other businesses, with promising areas of future cooperation potentially including Agility’s Logistics Parks business, Shipa group of companies, and technology ventures. Agility will remain an emerging markets leader, investor in emerging technologies, and champion of sustainable business.”
Agility is a global logistics company with $5.3 billion in annual revenue and 26,000 employees in more than 100 countries. It is one of the world’s top freight forwarding and contract logistics providers, and a leader and investor in technology to enhance supply chain efficiency. Agility is a pioneer in emerging markets and one of the largest private owners and developers of warehousing and light industrial parks in the Middle East, Africa and Asia. Agility’s subsidiary companies offer fuel logistics, airport services, commercial real estate and facilities management, customs digitization, and remote infrastructure services.
Agility would like to confirm the Dividends Timeline, to distribute 10% cash dividend (10 fils per share) and 10% bonus shares (10 shares for every 100 share), as per the below dates.
Distribution dates: Boursa Kuwait
Last trading date: 26 May 2021
Ex Dividends date: 27 May 2021
Settlement date: 31 May 2021
Distribution: 03 June 2021
Based on Kuwait Clearing Company’s (KCC) resolution to stop issuing paper cheques and adopt the automatic cash transfer as of 15 March 2020, we draw the attention of our valued shareholders to subscribe to the electronic transfer service through your preferred Bank so that KCC can transfer cash profits directly to shareholders’ accounts.
Distribution dates: Dubai Financial Market
Last entitlement date: 26 May 2021
Ex-Dividend date: 27 May 2021
Registry Closing date: 30 May 2021
Distribution: 03 June 2021
Investor Relations Team
Agility would like to announce, and based on a letter received from the Public Institution for Social Securities (PIFSS), the appointment of Mr. Khalid Abdullah Al Fadalah as PIFSS’s representative in Agility’s Board of Directors instead of Mr. Ahmed Hamad Al Thunayan.
Investor Relations Team
Global Response Aid (GRA), an affiliate of Agility, announced that a Phase 3 US-Canada clinical trial of Avigan®, an anti-viral drug, will continue amid signs the drug could be effective in treatment of patients with mild to moderate cases of COVID-19.
Interim results of the trials indicate that Avigan®, the brand name for generic Favipiravir, could shorten recovery times and prevent progression of COVID-19 in patients in early stages of infection. The US-Canada clinical trial will continue into the summer.
Dubai-based GRA holds joint rights to manufacture, market and distribute Avigan® outside of Japan, China and Russia.
There is no material impact as yet because the drug is not licensed or approved for treatment of COVID-19 in the United States or Canada.
Investor Relations Team
Agility will hold its Q1 2021 Earnings Webcast on Thursday May 20, 2021 at 2:00 pm (Kuwait), 7:00 am (New York) and 12:00 pm (London).
Please connect to the following web session at least 10 minutes before the beginning of the event:
Webcast Connection details:
Please note that a presentation will be displayed on the PC.
To view the presentation, please click the above link and join the web meeting.
Participants joining by webcast will be able to send questions via a chat box within the webcast player.
In the case you would like to submit your questions ahead of the scheduled webcast, please contact [email protected].
Investor Relations Department
Agility Public Warehousing Company
Please see the latest stock exchange filing.
Numbers above are rounded
KUWAIT – May 16, 2021 – Agility, a leading global logistics provider, today reported its first quarter 2021 earnings of 6.01 fils per share on net profit of KD 12.6 million, an increase of 28.7% over the same period in 2020. EBIT increased 31% to KD 26.9 million, and revenue increased 28.6% to KD 485.5 million.
Tarek Sultan, Agility Vice Chairman and CEO, said: “Agility started 2021 on a good note. Agility’s Global Integrated Logistics business performed well, with favourable market conditions as well as cost controls playing an important role. Agility’s Infrastructure companies overall are showing strong signs of recovery from the effects of the global pandemic. These Infrastructure businesses contributed an average of 80% of Agility’s EBIT over the past 5 years.”
Regarding Agility’s recent decision to sell its core commercial logistics business, Sultan said, “Going forward, Agility’s agreement with DSV Panalpina for DSV to acquire Agility’s Global Integrated Logistics business allows us to retain the assets generating the bulk of our operating profit, while taking advantage of the scale, experience, operational excellence and possibilities offered by working with DSV, one of the industry’s top performers. It also creates the flexibility and resources to reposition the company for its next chapter of growth.”
For Q1, the GIL numbers are fully consolidated on a line-by-line basis. However, going forward and until the deal closes, the consolidation will be done on a limited basis, as per IFRS 5, that accounts for non-current assets held for sale. GIL numbers will be summarized in the respective statement of the financial statements, rather than broken down on a line-by-line basis.
The Board of Directors also discussed and approved a forward looking minimum cash distribution policy recommendation of 20 fils per share and it might include treasury share buyback for the coming three (3) years.
The Board of Directors may at its sole discretion consider recommending additional forms of dividends and/or increasing the above mentioned guidance. As with all such recommendations, the distributions will be subject to the approval of the General Assembly of the Shareholders as well as the concerned authorities at the time of the distribution.
Agility Global Integrated Logistics (GIL)
In Q1, GIL achieved EBIT of KD 16.4 million, a 936.1% increase from same period a year earlier. The increase was driven by favourable market conditions in Freight Forwarding and growth in Contract logistics, along with strong cost controls.
GIL Net Revenue reached KD 77.2 million, up 16.2% from Q1 2020. The Net Revenue increase was a result of an increase in Freight Forwarding and Contract Logistics Net Revenue.
Air Freight Net Revenue increased as a result of higher volumes, yields and exceptional charter activity driven by current market situation. In Q1 2021, tonnage surged 14.8% over Q1 2020 levels.
The Ocean Freight Net Revenue increase was mainly a result of improved yields. Worldwide effective ocean capacity shrunk as volumes rebounded, particularly in Asia Pacific and Europe.
Q1 Contract Logistics growth came mainly from Asia Pacific (China, Hong Kong, Singapore) and MEA (Saudi Arabia, Dubai and Kuwait), where there was continued strong performance. Fairs & Events and Projects Logistics, both hurt by the pandemic, saw declines in Net Revenue.
Agility’s Infrastructure Companies
Agility’s Infrastructure group EBIT grew 2.2% to KD 24.7 million for the first quarter of 2021. Infrastructure group gross revenue was flat. Entities within the Infrastructure group are pursuing their growth strategies and have begun to recover from downturns caused by the pandemic. The Infrastructure group remains the main contributor to the group’s profitability.
Agility Logistics Park (ALP) revenue declined 10.2% in the first quarter due to the loss of revenue from Amghara land in Kuwait. This decrease was partially offset by an increase in revenue from Saudi operations. ALP continues to see strength in demand for warehousing space. Agility’s development strategy is to increase its land bank across the countries where it operates. ALP’s expansion and development in Africa continues as planned. In the Middle East, Agility’s Logistics Park in Riyadh is almost fully developed; and in Kuwait, ALP is looking to optimize existing assets and will kick-off the Sabah Al Ahmed project development in July.
Tristar, a fully integrated liquid logistics company, posted almost a flat Q1 revenue. However, the company was able to record single-digit profitability growth, mainly due to improved performance in its fuel business. Tristar’s long-standing relationships and repeat business with blue-chip clients have been key enablers of its success.
After a difficult 2020, National Aviation Services (NAS) profitability returned to pre-COVID levels in Q1. Despite a significant drop in flight volumes across its network and a 7% drop in revenue, NAS implemented cost cuts and controls that yielded results. In addition, NAS successfully launched new operations at Baghdad International Airport and introduced several new health service offerings. Cargo remains a positive part of the business, whilst passenger lounges remain depressed.
United Projects for Aviation Services Company (UPAC) experienced a 38.7% Q1 decline in revenue, primarily due to the cessation of operations at the Kuwait International Airport and the continuation of pandemic-related travel restrictions. UPAC continues to take various measures to reduce the negative impact on its business. The vaccination program underway in Kuwait is expected to generate renewed air travel and a gradual recovery in air traffic by Q3.
At GCS, Agility’s customs modernization company, revenue increased 8.3%. GCS is seeing signs of recovery and increased trade volumes. GCS is examining new customs modernization opportunities and ways of diversifying its income.
Sultan said: “Agility’s Infrastructure companies have been solid, stable performers over the years, with each company pursuing its own growth strategy. Entities impacted by the pandemic are recovering, and each company is continuing to explore growth opportunities. Agility’s long-term vision is to actively pursue growth in emerging markets and new technologies through these businesses and beyond. The DSV transaction will act as a catalyst to accelerate the pace, as well as expand the scope and scale, of investments in that segment”
Recap of Agility Q1 2021 Financial Performance
- Agility’s Net Profit increased 28.7% to KD 12.6 million. EPS was 6.01 fils vs. 4.67 fils a year earlier.
- Agility’s EBIT increased 31% to KD 26.9 million.
- Agility’s Revenue increased 28.6%, to KD 485.5 million and Net Revenue increased 5.1%.
- GIL Revenue increased 39.6% to KD 379.3 million.
- Infrastructure’s Revenue came in line with last year’s level at KD 110.6 million.
- Agility enjoys a healthy balance sheet with KD 2.3 billion in assets. Net Debt was KD 209.4 million as of March 31, 2021. Reported operating cash flow was KD 40.3 million for the first quarter of 2021, an increase of 52.5%
Sultan said: “Agility is committed to maximizing shareholder value. Agility’s investment in DSV in exchange of the GIL business gives Agility an 8% stake in one of the industry’s largest and best-performing logistics companies, while retaining profitable, high-value assets in emerging markets. Agility’s profitable portfolio of Infrastructure companies, including Agility Logistics Parks, our aviation services company, NAS, our fuels logistics company, Tristar, and our trade-enabling Shipa businesses, will continue to grow. At the same time, we will continue investing in new technologies, as well as in digital enablement for the supply chain, while exploring areas of future potential business cooperation between Agility and DSV.”
Agility is a global logistics company with $5.3 billion in annual revenue and 26,000+ employees in more than 100 countries. It is one of the world’s top freight forwarding and contract logistics providers, and a leader and investor in technology to enhance supply chain efficiency. Agility is a pioneer in emerging markets and one of the largest private owners and developers of warehousing and light industrial parks in the Middle East, Africa and Asia. Agility’s subsidiary companies offer fuel logistics, airport services, commercial real estate and facilities management, customs digitization, and remote infrastructure services.
We would like to inform you that Agility Public Warehousing Company’s Board meeting will be held on Tuesday, May 11, 2021 at 1:30pm (Kuwait time) to review the interim financial statement for the period ending in 31 March 2021.
Investor Relations Team