DUBAI, 16th August, 2018 (WAM) — DP World today announced robust financial results for the six months to 30th June 2018. On a reported basis, revenue grew 14.4 percent and adjusted EBITDA increased by 7.9 percent.
Commenting on the latest results, DP World Group Chairman and CEO, Sultan Ahmed bin Sulayem, said, “DP World is pleased to report like-for-like earnings growth of 5.2 percent in the first half of 2018 and attributable earnings of $593 million. Adjusted EBITDA grew 7.9 percent to $1,322 million with margins at 50.3 percent on a reported basis and 54.4 percent on a like-for-like basis. This robust performance has been delivered in an uncertain trade environment, once again highlighting our operational excellence and the resilience of our portfolio.”
Adjusted EBITDA margin was 50.3 percent, delivering profit attributable to owners of the Company, before separately disclosed items of US$593 million and EPS of 71.5 US cents. On a like-for-like basis, revenue grew 3.0 percent and adjusted EBITDA increased by 4.2 percent with adjusted EBITDA margin of 54.4 percent, and attributable earnings to owners of the Company increased up by 5.2 percent, reflecting the stable trading environment.
“We have made good progress in delivering our strategy of strengthening our portfolio of complementary and port related business with approximately $1,400 million worth of acquisitions announced recently. These acquisitions offer strong growth opportunities and enhance DP World’s presence in the global supply chain as we continue to diversify our revenue base and look at opportunities to connect directly with the owners of cargo and aggregators of demand,” Bin Sulayem added.
The global trade enabler reported strong cash generation and robust balance sheet, with cash from operating activities reaching $979 million in H1 2018. DP World was again upgraded by the rating agency Moody’s from Baa2 to Baa1 with a stable outlook following the one notch upgrade in 2016. Fitch Ratings also upgraded DP World from BBB to BBB+ in July 2017. Both rating agencies have upgraded DP World by two notches in two years.
DP World CEO noted, “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. Going forward, we aim to integrate our new acquisitions and we continue to extend our core business into port-related, maritime, transportation and logistics sectors with the objective of removing inefficiencies in global trade, improving the quality of our earnings and driving returns.”
The organisation’s capital expenditure guidance for 2018 remains unchanged at up to $1.4 billion with investments planned into UAE, Posorja (Ecuador), Berbera (Somaliland), Sokhna (Egypt) and London Gateway (UK).
“The near-term trade outlook remains uncertain with recent changes in trade policies and geopolitical headwinds in some regions continuing to pose uncertainty to the container market. However, the robust financial performance of the first six months also leaves us well placed for 2018 and we expect to see increased contributions from our recent investments in the second half of the year,” Bin Sulayem concluded.