Acquisitions fuel 31% profit growth at DP World

The Dubai, United Arab Emirates-based global port operator said slower volume growth at its terminal operations in 2015 was offset by revenues from the recent purchase of Economic Zones World in Dubai.    DP World reported a 30.7 percent increase in net profits to $883 million in 2015 compared with $675 million the previous year, according to the company’s most recent earnings statements.
   Revenues at the Dubai, United Arab Emirates-based global port terminal operator grew 16.3 percent to $3.97 billion for the year. Basic earnings per share (EPS) stood at $1.06 per share in 2015 compared with $0.81 per share in 2014.
   DP World said slower volume growth in its terminal operations was offset by revenues from the recent purchase of Economic Zones World in Dubai. On a like-for-like basis – excluding the acquisition of EZW – at constant currency exchange rates, net profits rose 6.2 percent from 2014.
   Like-for-like revenues increased 5.6 percent, driven by a 4.9 percent bump in containerized revenues.
   Container cargo volumes at DP World’s terminals grew 2.7 percent (1.7 percent on a like-for-like basis) to 29.1 million TEUs in 2015, well ahead of the estimated industry growth rate of 1.1 percent.
   “This financial performance has been achieved despite uncertain market conditions, which once again demonstrates the well diversified and resilient nature of our portfolio with its focus on high growth markets,” DP World Group Chairman and CEO Sultan Ahmed Bin Sulayem said of the results.
   Sulayem noted the company’s $5.4 billion investment expenditures in 2015, $4.0 billion for the EZW acquisition and an additional $1.4 billion in capex, which “leaves us well placed to capitalize on the significant medium to long-term growth potential of this industry.” 
   “While 2016 is expected to be another challenging year for global trade, we have made an encouraging start to the year and current trading is in line with group expectations,” he added. “Macro-economic conditions and geopolitical issues across some locations remain uncertain but we believe our portfolio is well positioned to deliver volume growth ahead of the market this year.”