DP World Profit Up 22%

 

Global marine terminal operator DP World today announced strong financial results from its global portfolio of marine terminals for the six months to 30 June 2015, delivering profit attributable to owners of the Company before separately disclosed items of $405 million, up 21.9% compared to the first half of 2014.

Profit for the period attributable to owners of the Company before separately disclosed items of $405 million; (1H2014 attributable income of $332 million)  Acquisitions of EZW helps boosts profit attributable to owners of the Company before separately disclosed items by 21.9%. EPS rises correspondingly as there has been no equity issued in connection to our investment activity.

 Profit for the period attributable to owners of the Company after separately disclosed items increased to $364 million; (1H2014 attributable income of $341 million)  Separately disclosed items principally comprises $49 million of non-cash and unrealised cost in connection with the Group’s convertible bond

 Strong cash generation and balance sheet remains robust
 Net cash from operating activities increased to $756 million from $551 million in 1H2014
 Leverage (Net Debt to adjusted annualised Pro Forma EBITDA) stands at 2.8x
 Continued investment in quality long-term assets to drive long-term profitable growth
 Over $3 billion invested in acquisition of EZW and Fairview Terminals
 $597 million invested across the existing portfolio
 Jebel Ali (UAE) will add a further 2 million TEU capacity and Yarimca (Turkey) to add 0.8 million TEU capacity in second half of 2015
 By end of 2015 we expect to have approximately 85 million TEU of capacity globally and over 100 million of TEU of capacity by 2020, subject to market demand.

DP World Chairman, Sultan Ahmed Bin Sulayem commented:-
“We are pleased to announce a strong set of results for the first six months of 2015, reporting earnings growth of 22% year on year, aided by the acquisition of EZW. This financial performance has been achieved despite uncertain market conditions, which once again demonstrates the well diversified and resilient nature of our portfolio. In 2015, we have invested over $3.5 billion in acquisitions and expansionary capex, and this investment leaves us well placed to capitalise on the
significant medium to long-term growth potential of this industry.

“We remain on course to deliver over 100 million TEU of capacity by 2020, while maintaining the existing shape of our portfolio that has a 70% exposure to origin and destination cargo and 75% exposure to faster growing markets. This positioning will enable us to deliver both earnings growth and shareholder value over the long term.”

Group Chief Executive Mohammed Sharaf commented:-
“We report solid first half financials with 14.5% revenue growth and 18.8% EBITDA growth. Encouragingly, like-for-like revenue growth continues to outpace throughput growth which demonstrates the pricing power within the portfolio.

“Our capex programme remains on track and we have added over 3 million TEU of new capacity in the first half of 2015 with our projects in Rotterdam (Netherlands) and Nhava Sheva (India) now operational.Yarimca (Turkey) and the second phase of Terminal 3 Jebel Ali (UAE) are on track for the second half of 2015. We believe this additional capacity will contribute to growth in the coming years and deliver enhanced returns to shareholders over the medium term.

“The near term outlook remains uncertain with limited visibility. However, we believe our business is well positioned to continue to outperform the market. We remain focused on delivering relevant
new capacity in the right markets, improving efficiencies and managing costs to drive profitability. Our first half performance underpins our confidence in meeting full year market expectations."