DP World posts earnings surge of 5.2% in H1

Global ports operator DP World reported on Thursday a like-for-like earnings growth of 5.2 per cent and a revenue growth 14.4 per cent in the first half of 2018.
Sultan Ahmed bin Sulayem, Group Chairman and CEO, DP World, said in the first half, attributable (part of a company's profit which is attributable to the ordinary shareholders) earnings stood at $593 million. Attributable earnings to owners of the company increased up by 5.2 per cent, reflecting the stable trading environment."Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) grew 7.9 per cent to $1.322 billion with margins at 50.3 per cent on a reported basis and 54.4 per cent on a like-for-like basis. This robust performance has been delivered in an uncertain trade environment, once again highlighting our operational excellence and the resilience of our portfolio," said Sulayem.
"Our balance sheet remains strong and we continue to generate high levels of cash flow, which gives us the ability to invest in the future growth of our current portfolio, and the flexibility to make new investments should the right opportunities arise," said Sulayem. 
He said DP World is aiming to integrate new acquisitions and would continue to extend core business into port-related, maritime, transportation and logistics sectors with the objective of removing inefficiencies in global trade, improving the quality of our earnings and driving returns.
Sulayem said the near-term trade outlook remained uncertain with recent changes in trade policies and geopolitical headwinds in some regions continuing to pose uncertainty to the container market. "However, the robust financial performance of the first six months also leaves us well placed for 2018 and we expect to see increased contributions from our recent investments in the second half of the year." DP World, which operates some 80 terminals in over 40 countries, recently announced the acquisition of Denmark-based Unifeeder Group for $764 million from Nordic Capital Fund and certain minority shareholders. Unifeeder, based in Aarhus, operates the largest and most densely connected common user container feeder and an important and growing short sea network in Europe, serving both deep-sea container hubs and the intra-Europe container freight market.
The world's fourth biggest port operator said the acquisition would further enhance its presence in the global supply chain and broaden product offering to the shipping lines and cargo owners. - issacjohn@khaleejtimes.com