DP World revenue up 14.4% in H1 2018
Global trade enabler DP World today announces robust financial results for the six months to 30 June 2018. On a reported basis, revenue grew 14.4 % and adjusted EBITDA increased by 7.9 %. Adjusted EBITDA margin was 50.3 %, delivering profit attributable to owners of the Company, before separately disclosed items 1, of $ 593 million and EPS of 71.5 US cents. On a like - for - like basis, revenue grew 3.0 % and adjusted EBITDA increased by 4.2 % with adjusted EBITDA margin of 54.4 %, and attributable earnings to owners of the Company increased up by 5.2 %, reflecting the stable trading environment.
Results Highlights
➢ Revenue of $2, 626 million ( Revenue growth of 14.4 % on reported and 3.0% on like - for - like basis)
1 Before separately disclosed items (BSDI) primarily excludes non - recurring items. DP World reported a profit in separately disclosed items of $48 million.
2 Like - for - like at constant currency is without the new addition s at Berbera (Somaliland), Limassol (Cyprus) , Drydocks World (UAE), Dubai Maritime City (UAE), Cosmos Agencia Marítima (Peru), Reyser (Spain); the discontinuation of Doraleh (Djibouti), Saigon (Vietnam), ISS (Pakistan); and normalizes for the consolidation of DP World Santos (Brazil).
3 Gross throughput is throughput from all consolidated terminals plus equity - accounted investees.
4 Consolidated throughput is throughput from all terminals where the Group has control as per IFRS.
5 Adjusted EBITDA is Earnings before Interest, Tax, Depreciation & Amort isation including share of profit from equity - accounted investees before separately disclosed items.
6 The adjusted EBITDA margin is calculated by dividing adjusted EBITDA by revenue, including our share of profit from equity - accounted investees.
7 Like - for - like adjusted EBITDA margin.
Revenue growth of 14.4 % supported by the volume growth across all three regions and the impact of new acquisitions including Drydocks World LLC (Drydocks), Dubai Maritime City (DMC) and Cosmos Agencia Marítima (CAM).
▪ Like - for - like revenue increased by 3.0 % driven by a 4.6 % increase in total containeriz ed revenue.
➢ Adjusted EBITDA of $ 1, 322 million and adjusted EBITDA margin of 50.3% (Like - for - like adjusted EBITDA margin at 54.4 %)
Adjusted EBITDA grew 7.9 % and EBITDA margin for the half year at 50.3 %. Like - for - like adjusted EBITDA grew 4.2 % with a margin of 54.4 %.
EBITDA margin declined due to the consolidation of lower margin Maritime services businesses.
➢ Profit for the period attributable to owners of the Company of $ 593 million
Profit attributable to owners of the Company before separately disclosed items dropped 2.1% on a reported basis but grew 5.2% on a like - for - like basis.
Profit declined due to the deconsolidation of Doraleh (Djibouti) and consolidation of DP World Santos (Brazil), which remains in ramp up stage.
➢ Strong Cash generation and robust balance sheet
Cash from operating activities remains strong at $ 979 million in 1H2018, slightly lower than $ 1,010 million in 1H2017.
Leverage (Net debt to annualised adjusted EBITDA) increased to 2.9 times from 2.6 times at 1H2017.
DP World was again upgraded by the rating agency Moody’s from Baa2 to Baa1 with a stable outlook following the one notch upgrade in 2016. Fitch Ratings also upgraded DP World from BBB to BBB+ in July 2017. Both rating agencies have upgraded DP World by two notches in 2 years.
➢ Continued investment in long - term assets and expansion into complementary sectors
Capital expenditure of $ 439 million invested across the portfolio during the first half of the year.
Capit al expenditure guidance for 2018 re mains unchanged at up to $1.4 bill ion with investments planned into UAE, Posorja ( Ecuador), Berbera (Somaliland), Sokhna (Egypt) and London Gateway (UK).
The acquisition of Drydocks , which closed in the beginning of 2018, is performing in line with expectations and we have seen increased contribution to our revenue line. At 1H2018, non - containerized revenue accounted for approximately 37% of total revenue, up from 31% in 1H2017.
Furthermore, DP World continued to invest in complementary sectors and acquired three more strategic assets – the integrated multimodal logistics players Continental Warehousing Corporation (CWC) in India, Cosmos Agencia Marítima in Peru, and the Unifeeder Group in Denmark, which operates the largest container common user feeder and growing shortsea network in Europe. Also, DP World signed a 20 - year concession to build and operate a modern logistics hub outside of Bamako, the capital and largest city of the Republic of Mali.
Aside from investments in complementary sectors, DP World recently won a 30 - year concession for the management and development of a greenfield port project at Banana in the Democratic Republic of the Congo, which despite being Africa’s third - most populous country, currently has no direct deep - sea port.
