UAE: DP World Increases Profit
DP World today announced financial results from its global portfolio of marine terminals for the first six months of 2012, reporting profit before tax at $310 million, 12% ahead of the prior period on an underlying basis.
DP World Chairman, Sultan Ahmed Bin Sulayem, commented:
“The past six months has been a challenging period for the global economy. Taking this into account, it is very encouraging that DP World has been able to show good profit growth across its global portfolio, led by its key markets of Africa, the Middle East and South America.”
• Revenue increased to $1,529 million with underlying growth of 10%
• Strong improvement in EBITDA to $672 million with underlying growth 11%
• Profit before tax was $310 million with underlying growth of 12%
• Net cash from operating activities of $518 million
• Balance sheet strength maintained with leverage (net debt to EBITDA) of 2.7 times
• Continued investment in quality long-term assets with $260 million invested during the period.
In a challenging global macroeconomic environment, DP World handled 7.5% more containers than during the same period last year and outperformed industry volume growth leading to an increase in the market share.
Revenue was $1,529 million, reflecting good underlying growth of 10% as the terminals attracted higher revenue from handling more containers and a 14% increase in non-container revenue.
EBITDA and EBITDA margin increased to $672 million and 43.9% respectively as the terminals continued to improve efficiencies and productivity for the customers. DP has invested in more efficient container handling equipment to facilitate the timely movement of goods across the global supply chain. Productivity improvements in the first half of the year include increasing the number of box moves per ship to shore crane, improving vessel turnaround time and improving documentation processes to improve the movement of goods to and from the terminal. These were combined with effective cost management to deliver an underlying growth in EBITDA of 11%.
Looking across DP regional portfolio, the Middle East, Europe and Africa region delivered an excellent performance with an 18% improvement in EBITDA to $477 million and further improvement in EBITDA margin to 46.3%. This reflects the strategic positioning of the terminals towards the faster growing and stronger economies in this region, mitigating weaker trade across continental Europe.
The Asia Pacific and Indian Subcontinent region reported EBITDA of $159 million in the first six months and record EBITDA margins of 68.4%.
DP World terminals in the Australia and Americas region delivered a strong revenue performance in the first six months of 2012 reporting revenue of $266 million or 12% growth on an underlying basis and EBITDA of $77 million.
DP World remains highly cash generative with net cash from operations of $518 million. This cash supports DP’s continued investment in the global portfolio.
In April DP World fully repaid and cancelled its $3 billion syndicated loan facility due in October 2012 using cash balances. DP World maintains a very healthy balance sheet and low leverage of 2.7 times. In addition, the Company has access to additional cash resources through a new $1 billion syndicated bank loan which is currently undrawn. This provides us with the flexibility to continue to invest in quality long-term assets for the future growth of the portfolio.
Group Chief Executive Officer, Mohammed Sharaf, commented:-
“In a tougher operating environment, we have reported a good set of results for the first six months, with profit and margin up on the same period last year. We continue to outperform industry volume growth; our balance sheet remains strong and allows us to invest in the future growth of our portfolio.
“I am particularly pleased to see our terminals handle an increasing number of the largest vessels in response to the industry trend. The quality of our assets is reflected in our underlying revenue growth, which again exceeds volume growth. These robust results show our portfolio is well diversified in today’s more challenging markets, and well placed to continue to outperform in the future.
”The global economic uncertainty seen in the first half of the year has continued into the second half. Our portfolio, as we have seen, continues to show resilience and we remain committed to delivering an improved operational and financial performance over 2011.”
Press Release, August 29, 2012