Aug 22, 2016: Global trade enabler DP World on Thursday announced a 10.2 percent revenue growth amounting to $2,094 million supported by the acquisitions of Jebel Ali Free Zone (UAE) and Prince Rupert (Canada) and 2.5 per cent like for like revenue driven by a 4 per cent increase in total containerised revenue.
While the containerised revenue per TEU (twenty-foot equivalent unit) grew 5.4 percent on a like-for-like basis, the non-container revenue saw a 0.9 percent decrease.However, on a reported basis, the non-container revenue, increased by 17.9 percent.
The company also saw a 56.2 percent increase in the adjusted EBITDA margin on the back of Jebel Ali Free Zone acquisition and increased contribution from other higher margin locations. Like-for-like adjusted EBITDA margin was at 51.8 percent. With this, the adjusted EBITDA now stands at $1,176 million.Profit for the period attributable to owners of the company stood at $608 million.
The company also boasted of a strong cash generation from operating activities, amounting to $905 million up from $857 million in 1H2015. Leverage (Net Debt to annualised adjusted EBITDA) decreased to 2.9 times (from 3.2 times at 31 December 2015).
The global marine terminal operator’s capital expenditure guidance for 2016 displays an amount of $1.2-1.4 billion with investments planned into Jebel Ali (UAE), Jebel Ali Free Zone (UAE), London Gateway (UK), Prince Rupert (Canada), JNP Mumbai (India), and Yarimca (Turkey).
“This financial performance has been achieved despite uncertain market conditions, which once again demonstrates the resilient nature of our portfolio. In 2016, we have invested $586 million of capex in key growth markets, and this investment leaves us well placed to capitalise on the significant medium to long-term growth potential of this industry,” said DP World Group chairman and CEO, Sultan Ahmed Bin Sulayem.
Though the outlook for trade growth remains uncertain, DP World’s chairman believes their portfolio is well positioned to continue to outperform the market. “We remain focused on delivering relevant new capacity in the right markets through disciplined investment, improving efficiencies and managing costs to drive profitability,” he said.
“Looking ahead to the second half of the year, we expect throughput performance to improve, and like-for-like financial performance (excluding one-off items and foreign exchange movements) to be similar to the first half. Overall, the strong financial performance of the first six months leaves us well placed to meet full-year market expectations,” he added.