Global marine terminal operator DP World today announces 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.
Results before separately disclosed items unless otherwise stated
like-for-like % change
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Consolidated throughput (TEU ‘000)
Share of profit from equity-accounted investees
Adjusted EBITDA margin
Profit for the period
Profit for the period attributable to owners of the Company
Profit for the period attributable to owners of the Company after separately disclosed items
Earnings per share attributable to owners of the Company (US cents) (EPS)
Revenue of $1,659 million; (1H2013 revenue of $1509 million)
Like-for-like revenue increased 11.6% driven predominately by containerised revenue growth of 12.0% on a like-for-like basis.
Containerised revenue per TEU (twenty-foot equivalent unit) grew 0.8% on a like-for-like basis.
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.
Profit for the period attributable to owners of the Company of $332 million; (1H2013 attributable income of $264 million)
Strong cash generation and balance sheet remains robust
Net cash from operating activities increased to $551 million.
Leverage (Net Debt to adjusted annualised EBITDA) stands at 1.6 times.
Continued investment in quality long-term assets to drive long-term profitable growth
$350 million invested across the portfolio in the first half.
Jebel Ali (UAE) will add a further 2 million TEU capacity in the fourth quarter of 2014 as it operates at over 90% utilisation.
By 2015 we expect to have approximately 85 million TEU of capacity globally and over 100 million of TEU of capacity by 2020, subject to market demand.
Strong adjusted EBITDA growth resulted in a 40.8% increase in like-for-like profit attributable to owners of the Company before separately disclosed items.
DP World Chairman, Sultan Ahmed Bin Sulayem commented:
“DP World is pleased to announce another strong set of first half results. 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.
“The substantial investment programme that we initiated in 2012 is starting to bear fruit as new capacity aids in the delivery of stronger top and bottom line growth. 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”.
The Group Chief Executive’s Review and the Operating and Financial Review follow from page 4.