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DP World pleased with strong first half results

Terminal operator plans to add 8 million-teu to its global portfolio.
NEWS, Ports & Free Zones

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DP World has announced 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 per cent ahead of the first half of 2013 on a like-for-like basis.

DP World says like-for-like revenue increased 11.6 per cent, driven predominately by containerised revenue growth of 12 per cent on a like-for-like basis.

The terminal operator says containerised revenue per-teu grew 0.8 per cent on a like-for-like basis.

It says that adjusted earnings before interest, taxes, depreciation, and amortisation accumulated to $778 million, claiming the margin improved due to strong throughput growth at higher margin locations coupled with cost control measures.

DP World Chairman, Sultan Ahmed Bin Sulayem says DP World is pleased with 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,” Bin Sulayem.

Group Chief Executive Mohammed Sharaf also commented, claiming DP World reported an excellent set of financial results for the first six months of 2014, delivering 11.6 per cent like-for-like revenue growth. Encouragingly, earnings continue to significantly outpace revenue growth with 19.1 per cent EBITDA growth and 40.8 per cent 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,” Sharaf said.

He said DP World has made good progress at its recently opened greenfield projects in Embraport, Brazil and DP World London Gateway.

Sharaf also revealed plans for DP World to add a further 8 million-teu of capacity to its 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.”

Sharaf also said 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”

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