ASYAD Group nets highest net profit to date

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Abdulrahman Al-Hatmi, Group CEO, ASYAD

ASYAD Group has registered rapid growth in the last six months due to sales increases and new revenue streams, resulting in a EBITDA growth of 14% and a forecast of 23% growth overall for 2019, according to Abdulrahman Al-Hatmi, Group CEO.

At the ASYAD Group Leadership Team hosted group-wide employee meeting—branded as Majlis ASYAD—to showcase the Group’s performance from the first half of 2019 and outline keynote initiatives for the second half of the year, Abdulrahman Al-Hatmi, said, ”I am pleased to say that 2019 is set to deliver our best Group financial performance to date.” The shareholder value increased from 16 per cent to 22 per cent in the first six months of 2019.

Linking ports

The Freezones are progressively attracting FDI. “We are integrating our services across the value chain to strengthen Oman’s position as a logistics hub. Plans are on the anvil to link all the three ports-Duqm, Sohar and Salalah.”

The Majlis, which took place at Oman’s Convention and Exhibition Centre, featured overview presentations on current operations and upcoming plans, as well as a question and answer session for attendees. The event was attended by 500 employees & stakeholders from across the Group. The regular event aims to build alignments and synergy through all the operating companies that are part of the ASYAD Group.

Key takeaways

Among the highlights announced at the Majilis included:
  • Group ports are forecast to see a 27% growth in bulk volumes and 14% growth in container volumes in 2019
  • 2019 FDI investment in the Sohar and Salalah free zones has reached $500 million this year, already surpassing the total amount invested in 2018
  • Oman Drydock Company reached an organisation first, servicing 19 ships in one day
  • 52 million sqm Khazaen Economic City open for business with first international tenants
  • 95% on-time deliveries from Oman Post and 85% positive customer feedback
  • Projected 50% year on year growth in number of passengers by Mwasalat. Achieved a historic 43000 riders in a single day.
  • National Ferries Company (NRC) cost reductions of half a million rials annually over the last five years while reaching 81 per cent Omanisation across the company.
  • Net profit is the highest to date and forecast sustained growth in net profit beating 2018 actuals and 2019 plans.
  • Creates $100 million sustainable efficiency improvements in its operations
  • Outlines H2 plans for further integration, expanded cargo connectivity, growth through digital transformation and development of future leaders across the Group.
  • The group plans to carry 1m TEUs by 2023 through its shipping line.
  • All the ports have ambitious expansion plans

Looking forward to H2 2019, Al Hatmi told participants, “Our strength as a Group comes from our integration – sharing in each others’ progress to secure ASYAD and the Sultanate’s position as a global logistics leader. The upcoming rollout of our Hub Project, connecting freight from ship to last-mile shipment, is a great example of how we are all working together to add new capabilities across the value chain.

Big Data and IoT

Another priority for us is the digitisation of all services and the adoption of new technologies such as Big Data AI, IoT and blockchain into our operations – ensuring that ASYAD offers one of the most competitive, advanced, efficient and technologically-integrated logistics solutions worldwide. Central to all our achievements and plans are our employees, which is why we are implementing Group-wide initiatives aimed at developing talent across ASYAD – with an initial focus on high-potential (HiPo) employees.

Attacks on fuel tankers in the Gulf of Oman has not had an impact on Oman Shipping Company  operations, an OSC representative informed. However, National Ferries Company, which offers high speed ferry services between numerous destinations along the Omani coast, said its financials have been impacted due to the ongoing tensions.

ASYAD Group nets highest net profit to date

Oommen John P is the Deputy Editor for OGR & Dossier and Associate Editor for OER. A journalist since 1994, John has worked for newspapers and business magazines in India and Oman. He joined UMS in January 2014, where his work profile includes writing about the economy and banking, oil and gas sector, auto reviews on prominent brands besides features and articles on travel.

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Oommen John P is the Deputy Editor for OGR & Dossier and Associate Editor for OER. A journalist since 1994, John has worked for newspapers and business magazines in India and Oman. He joined UMS in January 2014, where his work profile includes writing about the economy and banking, oil and gas sector, auto reviews on prominent brands besides features and articles on travel.