DP World announces record results as EBITDA increases 15% to $3.8 billion
DP World Limited announces strong financial results for the year ended 31 December 2021. On a reported basis, revenue grew 26.3% to $10,778 million and adjusted EBITDA grew 15.3% to $3,828 million with adjusted EBITDA margin of 35.5%, according to the company's release.
Results Highlights
Revenue increased by $2,245 million to $10,778 million (Revenue growth of 26.3% on reported basis)
Revenue growth of 26.3% supported by acquisitions and new concessions including Angola, Unico and Transworld.
Like-for-like revenue increased by 11.7% with like-for-like containerised revenue up 14.2% driven by volume growth.
Containerized revenue growth is higher than volume growth mainly due to higher storage and reefer monitoring revenue.
Like-for-like non containerised revenue up 9.5% with a strong performance from the Feedering business.
Adjusted EBITDA of $3,828 million and adjusted EBITDA margin of 35.5%
Adjusted EBITDA grew 15.3% and EBITDA margin for the year stood at 35.5%. Like-for-like adjusted EBITDA margin of 37.9%.
Reported EBITDA margin declined due to a change in mix with the consolidation of lower margin Logistics businesses.
Cash Generation Accelerates
Cash from operating activities increased 27.3% to a record $3,692 million in 2021 ($2,901 million in 2020).
Leverage (Net debt to adjusted EBITDA) at 3.7 times (Pre-IFRS16) despite higher net debt of $12.2bn ($11.0bn 2020). On a post-IFRS16 basis, net leverage stands at 4.2 times compared to 4.3 times at FY2020.
DP World credit rating remains investment grade at BBB- with Stable Outlook by Fitch and Baa3 with Stable Outlook by Moody’s.
DP World is committed to a strong investment grade rating in the medium term.
Strong Operational Performance Despite Disruptions
Terminals have remained open to service cargo owners despite challenge with pandemic.
DP World delivered a strong operational performance with berth productivity maintained despite low schedule reliability.
Disciplined Investment Across the Portfolio
Capital expenditure of $1,393 million ($1,076 million in 2020) invested across the existing portfolio.
Capital expenditure guidance for 2022 is for up to $1.4 billion with investments planned into UAE, Jeddah (Saudi Arabia), London Gateway (UK), Berbera (Somaliland), Sokhna (Egypt), Indonesia and Callao (Peru).
Acquisitions to bring value-add capabilities, exposure to high growth markets and long-term relationship with cargo owners
Acquisitions of Syncreon and Imperial Logistics.
Acquisitions bring value-add capabilities in fast growing markets and verticals.
Adds long-term relationship with cargo owners.
Partnership with CDC to create Africa Investment Platform
Partnership with UK’s development finance Institution, CDC, with DP World investing $1bn in ports and logistics across Africa.
Creation of platform will accelerate investment in Africa and remove trade inefficiencies.
About DP World
DP World is the leading provider of worldwide smart end-to-end supply chain logistics, enabling the flow of trade across the globe.
DP World delivers its services through an interconnected global network of 190 business units in 69 countries across six continents, with a significant presence both in high-growth and mature markets.
