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American ShipperShipping

DP World grows earnings over 50% in first half 2016

The Dubai, United Arab Emirates-based global port terminal operator posted a profit of $608 million on $2.1 billion in revenues for the first six months of 2016, year-over-year increases of 50.2 percent and 10.2 percent, respectively.

   DP World in the first half of 2016 grew profits attributable to owners of the company 50.2 percent to $608 million compared with the same 2015 period, according to the company’s most recent financial statements.
   Profits attributable to the owners of the company were up 4.3 percent on a like-for-like basis (not including divestments and new capacity).
   The Dubai, United Arab Emirates-based global port terminal operator posted earnings per share of $0.73 the first six months of the year compared with $0.49 per share the previous year. Revenues stood at $2.1 billion for the period, an increase of 10.2 percent as reported and 2.5 percent on a like-for-like basis from first half 2015.
   Like-for-like gross earnings and revenue figures excluded contributions from DP World’s facilities in Yarimca, Turkey; Stuttgart, Germany; Antwerp Inland, Belgium; Prince Rupert, Canada; and Jebel Ali Free Zone, UAE.
   Throughput at the company’s consolidated terminals – those it controls as defined under IFRS – grew 1.6 percent to 14.6 million TEUs, but fell 1.4 percent on a like-for-like basis. DP World reported previously total container volumes of 31.4 million TEUs in the first half of 2016, year-over-year increases of 2.5 percent on a reported basis and 1.2 percent on a like-for-like basis.
   Consolidated throughput at the company’s terminals grew 1.6 percent to 14.6 million TEUs, but fell 1.4 percent on a like-for-like basis. Containerized revenue per TEU grew 5.4 percent on a like-for-like basis, while non-container revenue slipped 0.9 percent on a like-for-like basis and grew 17.9 percent on a reported basis.
   DP World said it had capital expenditure of $586 million across its portfolio during the first half of the year and reiterated its capex guidance of between $1.2 billion and $1.4 billion for the full year with investments planned for Jebel Ali, Jebel Ali Free Zone, London Gateway, Prince Rupert, JNP Mumbai and Yarimca.
   DP World Group Chairman and CEO Sultan Ahmed Bin Sulayem attributed the “more modest” like-for-like earnings growth to a challenging trade environment.
   “DP World is pleased to announce a strong set of first half results, with 50 percent year-on-year earnings growth, and 56 percent adjusted EBITDA margins,” Sulayem said in a statement. “This financial performance has been achieved despite uncertain market conditions, which once again demonstrates the resilient nature of our portfolio. In 2016, we have invested $586 million of capex in key growth markets, and this investment leaves us well placed to capitalize on the significant medium to long-term growth potential of this industry.
   “We will maintain the existing shape of our ports portfolio that has a 70 percent exposure to origin and destination cargo and 75 percent exposure to faster growing markets,” he added. “This positioning will enable us to deliver both earnings growth and shareholder value over the long term.”
   Looking ahead to the remainder of 2016, Sulayem said the company expects throughput performance to improve and like-for-like financial performance to be similar to the first half, leaving DP World in a good position to meet full-year market expectations.
   “The outlook for trade growth remains uncertain, however, we believe our portfolio is well positioned to continue to outperform the market,” he said. “We remain focused on delivering relevant new capacity in the right markets through disciplined investment, improving efficiencies and managing costs to drive profitability.”

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