DP World’s profit up 30.7% in 2015

Dubai-based port operator DP World closed the 2015 financial year with a reported revenue growth of 16.3% and adjusted EBITDA increase of 21.4%, delivering a profit of USD 883 million, up 30.7% year-on-year.

As explained by DP World Group’s Chairman and CEO, Sultan Ahmed Bin Sulayem, the revenue growth was driven by the acquisition of Economic Zones World (EZW) and robust underlying growth.

The group reported volume growth of 2.7%, ahead of industry growth estimates of 1.1%. In addition, DP World recorded containerised revenue per TEU rise of 3.2% on a like-for-like basis and its non-container revenue increased 8.2% on a like-for-like basis and up by 64.6% on a reported basis due to acquisitions.

During the year, the company’s terminals in Mumbai (India) and Yarimca (Turkey) added 800k TEU of capacity each and 850k TEU capacity came on line with acquisition of Prince Rupert (Canada). Expansion in London Gateway Logistics Park (UK) and Jebel Ali Freezone (UAE) continue.

DP World expects by the end of 2016  to have approximately 86 million TEU of gross global capacity, an increase of approximately 15 million TEU since 2012, and over 100 million TEU of gross capacity by 2020, subject to market demand.

” In 2015, we have invested approximately USD 5.4 billion with USD 4 billion in acquisitions and USD 1.4 billion in capex, and this investment leaves us well placed to capitalise on the significant medium to long-term growth potential of this industry. Furthermore, we are pleased to report strong progress with EZW with continued growth as we benefit from operating an integrated logistics hub,” Bin Sulayem said.

As a result, the company’s board recommended increasing the dividend by 28% to a total dividend of USD 249 million, or 30.0 US cents per share to reflect the increase in earnings.

“While 2016 is expected to be another challenging year for global trade, we have made an encouraging start to the year and current trading is in line with group expectations. Macro-economic conditions and geopolitical issues across some locations remain uncertain but we believe our portfolio is well positioned to deliver volume growth ahead of the market this year,” DP World’s CEO added.

For 2016, the port operator anticipates capital expenditure to be between USD 1.2-1.4 billion with investment planned into Jebel Ali (UAE), Jebel Ali Freezone (UAE), London Gateway (UK), Prince Rupert (Canada).

“We remain on course to deliver over 100 million TEU of capacity by 2020, while maintaining the existing shape of our portfolio that has a 70% exposure to origin and destination cargo and 75% exposure to faster growing markets. This positioning should enable us to deliver attractive earnings growth and shareholder value over the long term,” Bin Sulayem concluded.

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