DP World announces financial results for H1 2017
Global trade enabler DP World today announces solid financial results for the six months to 30 June 2017. On a reported basis, revenue grew 9.6 % and adjusted EBITDA increased by 4.2 % . Adjusted EBITDA margin was 53.4 %, delivering profit attributable to owners of DP World, before separately disclosed items, of $ 606 million and EPS of 73.0 US cents. On a like - for - like basis, revenue grew 3.0 % and adjusted EBITDA increased by 7.0 %, adjusted EBITDA margin of 54.8 %, attributable earnings up by 15.8%, reflecting the improved trading environment.
As reported % change Like - for - like at constant currency % change 2 USD million Gross throughput 3 (TEU ‘000) 33,997 31,414 8.2% 7.7%
Consolidated throughput 4 (TEU ‘000) 17,870 14,603 22.4% 4.7%
Revenue 2,295 2,094 9.6% 3.0%
Share of profit from equity - accounted investees 60 6 9 (12.7%) 67.3%
Adjusted EBITDA 5 1,225 1,176 4.2% 7.0%
Adjusted EBITDA margin 6 53.4% 56.2% - 54.8%
Profit for the period 682 673 1.4% 13.3%
Profit for the period attributable to owners of the Company 60 6 608 ( 0.3 %) 15.8%
Profit for the period attributable to owners of the Company after separately disclosed items 54 3 557 ( 2.5 %)
Basic earnings per share attributable to owners of the Company (US cents) 73.0 73.2 (0.3%) 15.8%
Basic earnings per share attributable to ow ners of the Company after separately disclosed items (US cents) 65.5 67.1 (2.5%)
Results Highlights
Revenue of $2,295 million ( Revenue growth of 9.6 % on reported and 3.0% on like - for - like basis)
Revenue growth of 9.6 % supported by the strong volume growth across all three DP World regions .
1 Before separately disclosed items (BSDI) primarily excludes non - recurring items. DP World reported a loss in separately disclosed items of $63 million.
2 Like - for - like at constant currency is without the addition of new capacity at Berbera (Somaliland), Limassol (Cyprus), Saint John (Canada), ISS (Pakistan), CXP (Peru), Yarimca (Turkey) and normalizes for PNC (South Korea) consolidation.
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 con trol as per IFRS.
5 Adjusted EBITDA is Earnings before Interest, Tax, Depreciation & Amortisation 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 margi n. ▪ Like - for - like r evenue increased by 3.0 % driven by a 4.2 % increase in total containerized revenue.
Adjusted EBITDA of $ 1,225 million and adjusted EBITDA margin of 53.4 % (Like - for - like adjusted EBITDA margin at 54.8 %)
Adjusted EBITDA grew 4.2% and EBITDA margin for the half year reached 53.4 %. Like - for - like adjusted EBITDA increased at a stronger pace of 7.0% resulting in a margin of 54.8 %. ➢ Profit for the period attributable to owners of the Company of $606 million
Strong adjusted EBITDA growth resulted in a 15.8 % increase in profit attribut able to owners of DP World before separately disclosed items on a like - for - like basis but on a reported basis earnings remained flat ( - 0.3%) .
Strong cash generation and robust balance sheet and credit rating upgrade
Cash from ope rating activities amounted to $ 1,009 million up from $ 905 million in 1H2016 .
Leverage (Net debt to annualised adjusted EBITDA) decreased to 2.6 times (from 2.8 times at 31 December 2016 ).
DP World was recently upgraded by Fitch Ratings to BBB+ from BBB with stable outlook, after both Fitch and Moody’s upgraded the rating by one notch last year.
Continued investment in high quality long - term assets with strong supply/demand dynamics
Capital expenditure of $ 595 million invested across the portfolio duri ng the first half of the year.
Capital expenditure guidance for 2017 re mains unchanged at $1.2 billion with investments planned into Jebel Ali (UAE), London Gateway (UK), Prince Rupert (Canada) and Berbera (Somaliland) .
DP World subsidiary, P&O Maritime, acquired Spanish Maritime Service operator Reyser to further develop the Group’s maritime offering as well as adding complementary or related services to further diversify and strengthen our business .
About DP World
DP World is a leading enabler of global trade and an integral part of the supply chain. DP World operates multiple yet related businesses – from marine and inland terminals, maritime services, logistics and ancillary services to technology - driven trade solutions. DP World has a portfolio of 78 operating marine and inland terminals supported by over 50 related businesses in over 40 countries across six continents with a significant presence in both high - growth and mature markets. In 2016, DP World handled around 64 million TEU (twenty - foot equivalent units). With its committed pipeline of developments and expansions, the current gross capacity of 84.6 million TEU is expected to rise to more than 100 million TEU by 2020, in line with market demand.
