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Agility's Q3 earnings rise 11pc YoY to US$50m despite 7pc drop in revenue

KUWAIT-based 3PL Agility posted a third quarter net profit of KWD15.2 million (US$50.02 million), an 11 per cent increase compared to the same period a year earlier, despite a seven per cent decline in revenue to KWD312 million.

CEO Tarek Sultan said the company has seen a continuous underlying increase in profitability due to financial discipline and its investments in high-growth emerging markets.

"This is driven by steady progress in turning around our Global Integrated Logistics business, as well as by continued financial performance and growth in our infrastructure group of companies," he said.

"I attribute Agility's gains to sharper strategic focus and ongoing commitment to financial discipline, even as we invest in the markets, products, and technologies that will transform our business and help us continue to lead in the future," he was quoted as saying in a report by Lloyd's Loading List.

During the third quarter, the Global Integrated Logistics division saw growth in demand for contract logistics in emerging markets, as well as strong performance in ocean freight, both in terms of volume and yield. Although the air freight the business grew considerably in terms of volume, tougher yields compared to Q3 2015 resulted in flat net revenue.

"The main impact to net revenue shortfall remains in the general slowdown in our project logistics business as a result of the slowdown in the oil and gas market," added the CEO.