DP World reports 14.4% revenue growth in 1H 2018

DP World has announced the 1H 2018 financial results, showing a 14.4% revenue growth and a 7.9% increase in adjusted EBITDA. The reported revenue is USD 2,626 mln, its growth is accounted for by the volume growth across all three regions and the impact of new acquisitions including Drydocks World LLC, Dubai Maritime City and Cosmos Agencia Marítima. In January-June 2018, the company’s container terminals handled 35.62 mln TEU (Gross throughput), 6% up from last year’s records.

On a like-for-like basis, revenue grew 3%, driven by a 4.6% increase in total containerized revenue, and the adjusted EBITDA increased by 4.2% with adjusted EBITDA margin of 54.4%.

Profit for the period attributable to owners of the company (USD 593 mln) increased by 5.2% on a like-for-like basis, reflecting the stable trading environment. The company informs, however, that on a reported basis the profit attributable to owners dropped 2.1% due to the deconsolidation of Doraleh (Djibouti) and consolidation of DP World Santos (Brazil), which remains in ramp up stage.

Cash from operating activities remains strong at USD 979 mln, slightly lower than USD 1,010 mln in 1H 2017.

DP World has invested USD 439 mln in the first half of 2018 and confirms its capital expenditure unchanged for the current year at up to USD 1.4b bln with investments planned into UAE, Posorja (Ecuador), Berbera (Somaliland), Sokhna (Egypt) and London Gateway (UK).

Commenting on the current market, the global port operator reaffirms an upswing in global trade with all three regions delivering growth but warns that the outlook is unclear, as “geopolitical headwinds and recent changes to trade policies continue to pose uncertainty for the container market”.

DP World Group Chairman and CEO, Sultan Ahmed Bin Sulayem, commented: “We have made good progress in delivering our strategy of strengthening our portfolio of complementary and port related business with approximately USD 1,400 mln worth of acquisitions announced recently [including Unifeeder]. 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. …The robust financial performance of the first 6 months leaves us well placed for 2018 and we expect to see increased contributions from our recent investments in the second half of the year.”

Julia Louppova:
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