Agility Posts KWD 198.9 Million Nine-Month Loss to Shareholders After Land Write-Down
The Takeaway: One decision explains Agility’s loss this year: valuing its disputed warehouse land, leased from a state authority, at nothing and providing for money owed on those sites that it may never collect. The group still made money in the third quarter, though far less than a year earlier, when the distribution of Agility Global PLC shares reshaped the comparison. The auditors qualified their review over a customs claim, and with the land written off, stakes in associates and joint ventures, including Agility Global PLC, now make up more than half of total assets.
Agility Public Warehousing Company (Boursa Kuwait: MKHZN) booked a nine-month loss to shareholders of KWD 198.9 million after writing down warehouse land it leased from the state to nil.
A year earlier the nine-month loss was KWD 187.8 million, and it came from the discontinued Agility Global PLC business and the loss on distributing its shares; continuing operations made a profit. The third quarter alone stayed profitable, because the write-down and the related credit losses fell in the first half: profit attributable to shareholders was KWD 7.9 million, down 90.4% from a year-earlier quarter that included a gain on fair value adjustments to the retained Agility Global PLC stake.
The group’s auditors, EY and RSM Albazie, issued a qualified review conclusion, a sign-off with a stated exception, over a KWD 64.5 million claim against Kuwait’s customs administration whose recovery they could not verify.
The statements reached the exchange on Saturday 14 November, a non-trading day. The shares closed at 158 fils (a fils is a thousandth of a dinar) on Thursday 12 November, down 1.25%, in the last session before the filing, Boursa Kuwait data show.
The exchange puts the company’s market value at KWD 422.8 million. Over the past year the shares have traded between 126 and 167 fils.
The state-leased sites are written down to nil
The fair value loss of KWD 192.6 million, a cut in the land’s estimated market value, equals the full carrying value of five sites leased from the Public Authority for Industry (PAI), note 10(a) of the statements shows. The company took the decision after consulting its external legal counsel.
Courts have ruled against the company at least once on each of the five leases since the government ended automatic renewals in 2022. The ruling on the Amghara truck parking site became final in April, and the company was evicted from its Mina Abdullah site in June.
It also booked expected credit losses, provisions for money it may not collect, of KWD 43.4 million on trade receivables tied to the same properties. The two charges together reach KWD 236.0 million, The Edge’s calculation shows.
The company has made no provision for PAI’s claims for compensation over its continued use of the land, saying the amounts cannot be reliably estimated before final judgments. Those claims include KWD 9.6 million of usufruct compensation, a fee for using the land, ordered on the larger Sulaibiya site (contract 60) and now before the Court of Cassation, Kuwait’s highest court.
In December 2025 the Court of Appeal also ordered the company to pay PAI KWD 13.7 million over land in South Amghara that it has handed back, and in May a further KWD 6.9 million over the Amghara scrap yard. The Court of Cassation has stayed enforcement of both, and the company has made no provision for them. A separate PAI claim of KWD 28.7 million was ruled inadmissible by the Court of First Instance in October because it had already been decided, the notes to the statements show.
One ruling went the other way. The Court of Cassation ordered PAI in April to refund KWD 11.7 million the company had paid over stage 5 land in South Amghara, and the company collected it in June.
The group’s rental income fell 14.9% over nine months. In the industrial real estate segment, which held the leased land, EBITDA, the company’s measure of earnings before interest, tax, depreciation, amortization and directors’ pay, swung to a loss of KWD 197.3 million.
Third quarter (in KWD millions)
| Line | Q3 2026 | Q3 2025 | Change |
|---|---|---|---|
| Revenue | 35.8 | 38.7 | -7.6% |
| Net revenues | 27.0 | 31.7 | -15.0% |
| General and administrative expenses | 11.8 | 22.5 | -47.6% |
| EBITDA (company line) | 16.7 | 146.7 | |
| Profit from continuing operations | 11.2 | 141.8 | |
| Loss from discontinued operations | 0.0 | -108.5 | |
| Profit for the period | 11.2 | 33.3 | -66.3% |
| Attributable to shareholders | 7.9 | 82.7 | -90.4% |
| Basic and diluted EPS (fils) | 3.19 | 32.38 |
Nine months (in KWD millions)
| Line | 9M 2026 | 9M 2025 | Change |
|---|---|---|---|
| Revenue | 107.3 | 112.6 | -4.7% |
| Change in fair value of investment properties | -192.6 | 0.0 | |
| Expected credit losses | -43.8 | -3.6 | |
| Recoveries pursuant to favorable legal claims | 11.7 | 0.0 | |
| EBITDA (company line) | -172.6 | 178.9 | |
| Profit (loss) from continuing operations | -189.2 | 165.6 | |
| Loss from discontinued operations | 0.0 | -662.3 | |
| Loss for the period | -189.2 | -496.7 | |
| Attributable to shareholders | -198.9 | -187.8 | |
| Basic and diluted EPS (fils) | -78.70 | -73.57 |
Source: Agility Public Warehousing Company interim condensed consolidated statement of income for the period ended 30 September 2026 (reviewed, qualified conclusion) and notes 7, 9, 10 and 15. EBITDA is the company’s own line. Expected credit losses include KWD 43.4 million on PAI-related receivables (note 10(a)). Changes are calculated on unrounded figures; a change is not shown where a figure changes sign or between two losses. The 2025 profit lines include the Agility Global PLC distribution, explained in the text.
The year-earlier quarter is not like for like. In July 2025 Agility, which operates as Makhazen, distributed part of its Agility Global PLC shares to its own shareholders as a dividend in kind. Its effective stake fell to 26.58% from 51%, making the company listed in Abu Dhabi an associate, a company it influences but does not control. The fall also reflected the transfer of a 5.9% stake to Agility Global PLC in partial settlement of a loan Agility owed it.
That quarter carried a KWD 134.1 million gain on fair value adjustments to the retained stake and a KWD 108.5 million loss on the distribution. Minority shareholders absorbed KWD 53.5 million of that loss, which is why profit attributable to shareholders exceeded the group’s total a year ago.
This year’s quarter had no such items. General and administrative expenses roughly halved, and the filing does not explain the fall.
Auditors flag a customs claim and the disputed land
The qualification concerns a KWD 64.5 million judgment won by the subsidiary Global Clearing House Systems against the General Administration of Customs, booked in 2024 after a Court of Cassation ruling. Enforcement is still in progress, and the timing and amount of recovery remain uncertain, the auditors wrote.
The judgment also carries interest of 7% a year, which the company has not recorded because it cannot yet quantify it. The auditors’ conclusion stands “except for the possible effect of the matter described” in their basis paragraph.
They added emphasis of matter paragraphs, which flag issues without changing the conclusion, on the PAI land carried at nil, on PAI’s unprovided compensation claims and on other disputes with customs. In one of those, the Court of Cassation stayed in April 2023 an order for the subsidiary to pay KWD 12.4 million.
The group’s short-term position also reversed, note 2 shows. Current liabilities exceeded current assets by KWD 24.0 million at the end of September, against a surplus of KWD 25.6 million at the end of 2025.
Management attributes the shift mainly to the PAI credit losses and to loans from a related party now due within a year. It says the group has adequate resources, citing operating cash flows, undrawn facilities and quoted shares it could sell if needed.
Equity more than halves; reserves are used to absorb losses
Equity attributable to shareholders fell 53.5% to KWD 265.1 million from the end of 2025. Other comprehensive losses attributable to shareholders of KWD 88.8 million, driven by the group’s share of its associates’ other comprehensive loss, added to the nine-month loss.
Under authority from the May general assembly, the board moved KWD 152.7 million of share premium, money raised above the shares’ nominal value, and KWD 62.5 million of statutory reserve, profits the law requires companies to set aside, into retained earnings to absorb accumulated losses. That KWD 215.1 million transfer changes the make-up of equity, not its total.
The company also raised its holding of treasury shares, its own shares bought back and held, to 7.35% of issued shares from 4.63% at the end of 2025.
Balance sheet (in KWD millions)
| Line | 30 Sep 2026 | 31 Dec 2025 | Change |
|---|---|---|---|
| Total assets | 756.0 | 1,076.7 | -29.8% |
| Investment properties | 158.2 | 335.2 | -52.8% |
| Investments in associates and joint ventures | 399.2 | 493.8 | -19.2% |
| Bank balances, cash and deposits | 44.5 | 50.6 | -12.1% |
| Interest-bearing loans | 137.0 | 136.9 | |
| Loans from related parties | 114.9 | 112.9 | |
| Total liabilities | 477.0 | 484.4 | -1.5% |
| Equity attributable to shareholders | 265.1 | 569.9 | -53.5% |
| Total equity | 279.0 | 592.2 | -52.9% |
Source: Agility Public Warehousing Company interim condensed consolidated statement of financial position at 30 September 2026 and notes 4, 5 and 11; 31 December 2025 figures audited. Interest-bearing loans and loans from related parties combine their current and non-current lines. Loans from related parties include KWD 102.0 million owed to Agility Global PLC.
In The Edge’s reading, the group that remains is above all a holder of stakes in associates and joint ventures, including Agility Global PLC. Investments in associates and joint ventures now make up 52.8% of total assets, against 20.9% for the investment properties left after the write-down.
Operating cash flow came to KWD 45.9 million over nine months. The 2025 figure included Agility Global PLC until its July distribution, so the two are not comparable.
The board decided on 12 November to keep the company’s listing on the Dubai Financial Market after discussing a delisting, the company’s letters to that exchange show. That market had suspended trading in the shares on 13 November for not submitting the third-quarter statements, which reached it on 14 November; it had posted no resumption notice by 17:42 GMT that day.
What to watch: The Court of Cassation hears the company’s request to stay enforcement of the Sulaibiya contract 211 ruling, which confirmed that lease’s termination, on 17 November, note 10(a) shows. Cassation appeals on the other PAI sites are pending, and recovery of the KWD 64.5 million customs judgment behind the qualification remains in enforcement. A new tribunal at the International Centre for Settlement of Investment Disputes is scheduled to hear the group’s refiled claim against Iraq over its Korek Telecom investment in November, the filing says. The company will hold its analyst conference by live webcast on 18 November at 2:00 pm Kuwait time (11:00 GMT), the letter adds. The board has also approved calling an extraordinary general assembly to update the company’s activities under Ministry of Commerce and Industry requirements; its date has not yet been disclosed. The filing gives no outlook.
Method: figures are from Agility Public Warehousing Company’s interim condensed consolidated financial information for the nine months to 30 September 2026 (statements of income, comprehensive income, financial position, cash flows and changes in equity, and notes 1, 2, 4 to 7, 9 to 13 and 15), with the review report of Al Aiban, Al Osaimi & Partners (EY) and RSM Albazie & Co. dated 12 November 2026, filed on Boursa Kuwait on 14 November 2026; the company’s board-results letter to the Dubai Financial Market dated 14 November 2026 and its board-meeting invitation of 8 November 2026, and the market’s trading-suspension notice of 13 November 2026; and Boursa Kuwait stock profile data for the 12 November 2026 session. Percentage changes, the combined charges, the combined debt lines, the shares of total assets and the GMT webcast time are The Edge’s calculations.
Sources: Agility Public Warehousing Company, Boursa Kuwait, Dubai Financial Market, The Edge.
