Agility’s profit stalled in the second quarter as the Kuwaiti global logistics and infrastructure group reported it was beginning to reap the benefits of a two-year-long restructuring of its businesses.
The company, which is facing U.S. fraud charges, booked unchanged net income of 7.8 million dinars ($27.7 million) in the three months to June 30 as revenue grew 6 percent to 348.8 million dinars ($1.24 billion).
Logistics revenue increased 1 percent to $1.05 billion, while infrastructure sales grew to $207 million from $160.5 million, driven by the acquisition of Kuwait-based United Projects for Aviation Services.
“Although we feel the effects of the broader slowdown in the economy, we continue to improve our operational performance during these challenging times … We are making good progress in our efforts to transform our business through technology, improved financial discipline, and focus on underperforming entities,” Agility Managing Director Tarek Sultan said.
The company said its logistics contract to support the Gorgon natural gas project in Australia, the world biggest, is worth $244 million over the next two years.
Agility, which was the biggest supplier in the Middle East to the U.S. Army during the Iraq war, pleaded not guilty in August to charges it defrauded the U.S. government over multibillion supply charges.
The company is barred from bidding for new U.S. government contracts pending the outcome of the fraud cases.
Agility filed for $225 million in claims against the U.S. Defense Logistics Agency in April, alleging the agency breached terms of a contract to supply food to U.S. combat troops.
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