Dubai: DP World's H1 net profit up 50% to $608m
The company’s revenue growth was supported by the acquisitions of Jebel Ali Free Zone (UAE) and Prince Rupert (Canada)
Dubai-based DP World announced its financial results for the six months ending 30 June, delivering profit attributable to owners of $608m, up 50.2%.
On a reported basis, revenue grew 10.2% to $2bn compared to the same period last year.
The company’s revenue growth was supported by the acquisitions of Jebel Ali Free Zone (UAE) and Prince Rupert (Canada). Containerised revenue per TEU (twenty-foot equivalent unit) grew 5.4% on a like-for-like basis. Non-container revenue decreased by 0.9% on a like-for-like basis and increased by 17.9% on a reported basis, it said.
The company successfully raised $1.2bn in a new seven-year sukuk transaction at significantly improved terms, refinancing $1.1bn of the existing 2017 sukuk through a tender offer and extending the debt maturity profile.
DP World made a capital expenditure of $586m, investing across the portfolio during the first half of the year.
Capital expenditure guidance for 2016 remains unchanged at between $1.2bn and $1.4bn with investments planned into Jebel Ali port (UAE), Jebel Ali Free Zone (UAE), London Gateway (UK), Prince Rupert (Canada), JNP Mumbai (India), and Yarimca (Turkey).
DP World Group chairman and CEO, Sultan Ahmed Bin Sulayem, said: “DP World is pleased to announce a strong set of first half results, with 50% year-on-year earnings growth, and 56% adjusted EBITDA margins. The more modest like-for-like earnings growth is a reflection of the challenging trade environment.
"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 $586m of capex in key growth markets, and this investment leaves us well placed to capitalise 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% exposure to origin and destination cargo and 75% exposure to faster growing markets. This positioning will enable us to deliver both earnings growth and shareholder value over the long term."
He added: “The outlook for trade growth remains uncertain, however, we believe our portfolio is well positioned to continue to outperform the market. We remain focused on delivering relevant new capacity in the right markets through disciplined investment, improving efficiencies and managing costs to drive profitability.
“Looking ahead to the second half of the year, we expect throughput performance to improve, and like-for-like financial performance (excluding one-off items and foreign exchange movements) to be similar to the first half. Overall, the strong financial performance of the first six months leaves us well placed to meet full-year market expectations.”