KUWAIT: Revenue at Kuwait-listed logistics company Agility is expected to resume growing next year as emerging markets business expands and the company develops new sectors, Chief Executive Tarek Sultan said.
With more than 20,000 employees and over 500 offices in more than 100 countries, Agility is one of Kuwait’s corporate success stories and a play on the Gulf’s rapidly expanding trade links with the rest of the world, especially emerging markets in Asia and Africa.
Its logistics and freight forwarding businesses, which account for most of its revenue, have been hit by instability in the global economy over the last few years. Total revenue sank 7 percent to 656 million dinars ($2.28 billion) in the first half of this year, after a 3 percent drop in 2013.
Agility has been able to keep its profit growing by controlling costs; salaries and employee benefits were essentially flat in the first half as net income climbed 11 percent to 24.1 million dinars.
“Globally, revenues have been affected by conditions that have challenged the freight forwarding industry,” Sultan said in an interview for the Reuters Middle East Investment Summit, adding that Agility had therefore been focusing on how it could boost productivity.
Kuwait’s Agility hopes for revenue rebound
Kuwait’s Agility hopes for revenue rebound
Closing Bell: Saudi main index dips slightly to 10,912
RIYADH: Saudi Arabia’s Tadawul All Share Index was broadly stable on Tuesday, as it shed just 4.61 points or 0.04 percent to close at 10,912.43.
The total trading turnover of the benchmark index stood at SR3.99 billion ($1.06 billion), with 68 of the listed stocks advancing, and 194 declining.
The Kingdom’s parallel market Nomu gained 0.68 points to close at 23,358.18.
The MSCI Tadawul Index also edged up by 0.03 points to 1,467.56.
The best-performing stock on the main market was Saudi Cable Co. The firm’s share price rose by 9.72 percent to SR161.40.
The share price of Almasane Alkobra Mining Co. advanced by 9.25 percent to SR108.70.
Al-Jouf Agricultural Development Co. also saw its stock price climb by 6.46 percent to SR48.10.
Conversely, the share price of Tabuk Agricultural Development Co. edged down by 3.67 percent to SR7.61.
On the announcements front, Dar Al Majed Real Estate Co. said that it signed a Shariah-compliant banking facilities agreement with the Arab National Bank valued at SR500 million.
In a Tadawul statement, the company revealed that the agreement is aimed at supporting the firm’s expansion plans and financing its future projects in line with its approved strategic plan.
The financing term extends for up to five years and includes a grace period of two years.
The share price of Dar Al Majed Real Estate Co. declined by 0.99 percent to SR9.
Saudi Paper Manufacturing Co. said it signed a credit facilities agreement with Kuwait Finance House Bahrain, which includes facilities allocated to finance working capital and medium-term facilities amounting to $40 million.
In a Tadawul statement, the company revealed that the working capital facilities extend for 12 months and are renewable.
The medium-term facilities last for 48 months, including a six-month grace period.
The credit facilities will be used to cover the company’s working capital for operational activities, plans and expansions in purchasing raw materials, in addition to restructuring medium-term debts to improve cash flows.
The share price of Saudi Paper Manufacturing Co. edged down by 1.09 percent to SR58.80.
