DP World sees 9.6% jump in H1 2017 revenue
Shipping - Global trade enabler DP World has announced strong financial results for the six months of 2017. On a reported basis, revenue grew 9.6 percent and adjusted EBITDA increased by 4.2 percent and adjusted EBITDA margin was 53.4 percent.
August 26, 2017: Global trade enabler DP World has announced strong financial results for the six months of 2017. On a reported basis, revenue grew 9.6 percent and adjusted EBITDA increased by 4.2 percent and adjusted EBITDA margin was 53.4 percent. The earnings stood at US $606 million with an EPS of 73.0 US cents.
On a like-for-like basis, revenue grew 3 percent and adjusted EBITDA increased by 7 percent, adjusted EBITDA margin of 54.8 percent, attributable earnings up by 15.8 percent, reflecting the improved trading environment.
DP World’s earned revenue of US $2,295 million at a 9.6 percent growth on reported and 3.0 percent on like for-like basis during the first half of the year. The revenue growth of 9.6 percent was supported by the strong volume growth across all three DP World regions.
Adjusted EBITDA of US $1,225 million grew by 4.2 percent and adjusted EBITDA margin of 53.4 percent (Like-for like adjusted EBITDA margin at 54.8 percent).
Reported profit during H1, 2017 was US $606 million, because of the 15.8 percent increase in attributable profits.
Cash from operating activities amounted to US $1,009 million up from US $905 million in H1, 2016.
Net debt to annualised adjusted EBITDA decreased to 2.6 times from 2.8 times at 31 December 2016).
DP continued its investments in HI, 2017 and that amounts to US $595 million across the portfolios. However, the capital expenditure guidance for 2017 remains unchanged at US $1.2 billion with investments planned into Jebel Ali (UAE), London Gateway (UK), Prince Rupert (Canada) and Berbera (Somaliland).
DP World subsidiary, P&O Maritime, acquired Spanish Maritime Service operator Reyser to further develop the Group’s maritime offering as well as adding complementary or related services to diversify further and strengthen our business.
The improved trading environment in the first half of 2017 and market share gains from the new shipping alliances driving volumes in the second quarter of the year.
DP World Group chairman and CEO, Sultan Ahmed Bin Sulayem, said, “DP World is pleased to announce a solid set of first half results with attributable earnings of $606 million, and like-for-like earnings growth of 15.8 percent. Adjusted EBITDA reached US $1,225 million as margins were maintained at above 50 percent. Encouragingly, after a challenging period, we have seen a pick-up in global trade particularly in the second quarter of the year. And that combined with the ramp up in our recent investments in Yarimca (Turkey), London Gateway (UK), Rotterdam (Netherlands) and JNPT Mumbai (India), has delivered ahead-of-market volume growth. In the first half of 2017, we have invested US $595 million of capex in key growth markets and announced over US $170 million of acquisitions in our maritime business, which offers significant growth opportunities. These investments leave us well placed to deliver on our strategy to strengthen our port related services and capitalise on the significant medium to long-term growth potential of this industry.”
“Our balance sheet remains strong, and we continue to generate high levels of cash flow, which gives us the ability to invest in the future growth of our current portfolio, and the flexibility to make new investments should the right opportunities arise as well as delivering enhanced returns to shareholders over the medium term. Looking ahead to the second half of the year, we expect higher levels of throughput to be maintained. Overall, the steady financial performance of the first six months leaves us confident in meeting full-year market expectations,” he added
