DP World’s financial results prove maritime’s resilience
Dubai industry major outperforms industry again, demonstrating it is in the right locations
Global ports operator DP World on Thursday reported better-than-expected financial results for its just-concluded financial year, confirming the resilience of the sector amid the hits it took from the coronavirus pandemic.
In its fiscal year ended December 31, the Dubai-headquartered industry major reported robust results, posting revenue growth of 11 per cent to $8.533 billion, with adjusted earnings before interest, taxes, depreciation and amortisation (Ebitda) up 0.4 per cent to $3.32 billion, with an adjusted margin of 38.9 per cent.
Revenue growth was supported by acquisitions and full-year contributions from Topaz Energy & Marine and P&O Ferries. Revenue in the maritime and logistics segments soared 33.2 per cent.
Adjusted Ebitda, meanwhile, excluding one-off land sale in 2019, decreased 0.8 per cent year-on-year, displaying the resilience of the wider portfolio.
DP World group chairman and CEO Sultan Ahmed bin Sulayem highlighted the company’s strategies that have helped it maintain its high standards of performance.
“In a year like no other... the container industry has outperformed the gloomy double-digit decline that some predicted at the start of the pandemic, which illustrates the resilience of the market,” he said in a statement accompanying the results.
“DP World has outperformed the industry once again, which demonstrates that we are in the right locations and a focus on origin and destination cargo will continue to deliver the right balance between growth and resilience.”
The company’s continued progress on its strategy, as well as its focus on digitising logistics and developing solutions for several verticals, allows DP World to deliver efficient solutions to its customers, “which bodes well for the future”.
“The strength and resilience that our business continually demonstrates throughout the cycles is due to the investment the group has made over the years in response to changes in our industry. Our ability to adapt and change has been the key to our success, and we must continue to evolve for continued growth,” Bin Sulayem said.
He added that DP World will continue to be selective on new investments and focus on the integration of recent acquisitions to drive synergies, containing costs to protect profitability and managing growth capex to preserve cashflow.
“We remain positive on the medium to long-term outlook for the industry and our business.”
Cash from operating activities increased 17.8 per cent to $2.9 billion, as DP World focused on managing costs to preserve cash. Free cash flow improved 19 per cent to $2.45 billion.
DP World credit rating remains investment grade at BBB- by Fitch and Baa3 by Moody’s, both of which have issued stable outlooks.
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