DP World’s Newly Added Capacity Bearing Fruit
Global marine terminal operator DP World has recorded strong financial results from its global portfolio of marine terminals for the six months to 30 June 2014, delivering profit attributable to owners of the company before separately disclosed items of $332 million, 40.8% ahead of the first half of 2013 on a like-for-like basis.
Financial highlights include:
- Revenue of $1,659 million; (1H2013 revenue of $1509 million)
- Adjusted EBITDA of $778 million; adjusted EBITDA margin of 46.9%; (1H2013 adjusted EBITDA of $689 million; adjusted EBITDA margin 45.6%)
- Adjusted EBITDA margin improved due to strong throughput growth at higher margin locations coupled with cost control measures
DP World Chairman, Sultan Ahmed Bin Sulayem said: “The addition of new capacity and a pick-up in global trade has resulted in a return to robust volume growth, which has translated into an impressive financial performance. Our portfolio is well positioned to capitalise on the significant medium to long-term growth potential of this industry and we continue to seek new opportunities in the faster growing markets.”
Group Chief Executive Mohammed Sharaf commented:
“We have reported an excellent set of financial results for the first six months of 2014, delivering 11.6% like-for-like revenue growth. Encouragingly, earnings continue to significantly outpace revenue growth with 19.1% EBITDA growth and 40.8% EPS growth on a like-for-like basis.
We have made good progress at our recently opened greenfield projects in Embraport, Brazil and DP World London Gateway, UK and we look forward to adding a further 8 million TEU of capacity to our portfolio over the next two years, providing further opportunity for growth.
Crucially, our balance sheet remains strong and we continue to generate high levels of cashflow, 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.
“The near term outlook remains encouraging, however continued geopolitical issues may result in challenges as the year progresses. Overall, we believe our business is well positioned for medium to long-term growth and we expect to continue to outperform the market.
We remain focused on delivering relevant new capacity in the right markets, improving efficiencies, containing costs and handling higher margin containers to drive profitability. Our strong first half performance gives us confidence in meeting full year market expectations.”
Press Release, August 28, 2014; Image: DP World