DP World announce $608m first half profit

DP World has announced a 50.2% increase in profit attributable to shareholders of $608m for the first half of 2016 and says it remains well placed to “continue to outperform the market” despite on-going global trade uncertainty.

The global terminal operator unveiled a 10.2% growth in revenue to $2.09bn in its half year report to the Dubai Nasdaq Thursday, attributing the uptick to the acquisitions of Jebel Ali Free Zone (UAE) and its Prince Rupert terminal in Canada.

On a reported basis adjusted EBITDA increased by 27.2%, adjusted EBITDA margin of 56.2%, delivering profit attributable to owners of the company of $608 million, up 50.2%, and EPS of 73.2 US cents.

On a like-for-like basis, revenue grew 2.5% and adjusted EBITDA increased by 6.6. Attributable earnings were up 4.3% “reflecting the challenging global trade environment.

“DP World is pleased to announce a strong set of first half results, with 50% year-on-year earnings growth, and 56% adjusted EBITDA margins. The more modest like-for-like earnings growth is a reflection of the challenging trade environment,” DP World group chairman and ceo Sultan Ahmed Bin Sulayem said.

DP World said it had invested $586 million in capital expenditure across its portfolio in the first half of the year and capex “guidance for 2016 remains unchanged at between $1.2-1.4bn” with investments planned at its flagship Jebel Ali Port (terminal 4 construction), 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,” Sulayem said.

“We remain focused on delivering relevant new capacity in the right markets through disciplined investment, improving efficiencies and managing costs to drive profitability.

Containerised revenue per teu grew 5.4% on a like-for-like basis. Non-container revenue decreased by 0.9% on a like-for-like basis and increased by 17.9% on a reported basis.

“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,” said Sulayem.

“Overall, the strong financial performance of the first six months leaves us well placed to meet full-year market expectations.”



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