DP World earnings up 27% at $753M in first half
Global ports operator DP World Group reported on Thursday a 21.9 per cent growth in adjusted earnings before interest, taxes, depreciation and amortisation to $1.611 billion as its attributable earnings surged 26.8 per cent to $753 million in the first half of 2019.
The Dubai-based company said its half year revenue grew 31.9 per cent to $3.463 billion on reported and 10.8 per cent on a like-for-like basis, supported by acquisitions and growth in non-containerized revenue and driven by growth in non-container revenue.
Sultan Ahmed Bin Sulayem, chairman and CEO, credited the company's strategy of developing innovative new products and services and prudent management for DP World's impressive half-year results. He said that DP World's "excellent performance against the backdrop of challenging global economic conditions" is a testament to the company's resilience, sound growth strategy and the diversification of its global investment portfolio across energy, maritime and sustainable mobility amongst others.
"Our half-year financial results have been in line with our expectations," Sulayem said. "DP World continues to be guided by deep market understanding, innovation and operational excellence across 45 countries worldwide. Despite uncertainty from the trade war and challenging regional geopolitical realities, DP World has been able to deliver and excel a broadly impressive performance in the first half of 2019."
The company said Ebitda margin declined due to a change in the mix with the consolidation of lower margin logistics and maritime services businesses. Profit attributable to owners of the company before separately disclosed items rose 26.8 per cent on a reported basis and grew 22.2 per cent on a like-for-like basis.
In a statement, the ports operator said cash from operating activities remains strong at $1.046 billion. Global trade continues to grow, but outlook is uncertain as container trade grew by low single digits in the first half of 2019, but concerns around the trade war continue to weigh on the outlook.
DP World's ports and terminals investments during first half include two new assets in Chile, Fraser Surrey Docks in Canada and the consolidation of assets in Australia. Logistics and maritime investment include acquisition of Pan-European logistics platform of P&O Ferries and marine logistics operator Topaz Marine & Energy while capital expenditure of $636 million was invested across the existing portfolio during the first half of the year. DP World's capital expenditure guidance for 2019 remains unchanged at up to $1.4 billion with investments planned into UAE, Ecuador, Somaliland, Egypt and the UK.