DP World’s Net Income Exceed USD 1 Bln for First Time
Dubai-based port and terminal operator DP World announced strong financial results from its global portfolio for the twelve months ending 31 December 2016, despite “significant challenges” in the industry.
On a reported basis, revenue grew 4.9% and adjusted EBITDA increased 17.4% with adjusted EBITDA margin of 54.4%, delivering profit attributable to owners of the Company, before separately disclosed items, of $1,127 million, up 27.6%, and EPS of 135.7 US cents.
DP World Group Chairman and CEO, Sultan Ahmed Bin Sulayem, said: “We are pleased to announce another set of strong financial results for 2016, as we delivered earnings in excess of $1 billion and above 50% EBITDA margins for the full year for the first time."
Its volumes have continued to grow ahead of the market with gross volumes growing 3.2% vs. Drewry full year market estimate of 1.3%. "This is pleasing given the significant challenges parts of our portfolio have faced, and once again demonstrates the resilient nature of our diversified portfolio. Disciplined investment throughout the economic cycle has been one of the keys to delivering consistent growth and in 2016, we invested $1,298 million across our portfolio in markets with strong demand and supply dynamics," he added.
While 2017 is expected to be another challenging year for global trade, DP World has made an encouraging start to the year and expects to continue to deliver ahead-of-market volume growth.
The Board of DP World recommends increasing the dividend by 26.7% to $315.4 million, or 38.0 US cents per share, reflecting the strong earnings growth in the year. The Board is confident of the Company’s ability to continue to generate cash and support our future growth whilst maintaining a consistent dividend payout.
“Our significant cash generation and investment partnerships leave us with a strong balance sheet and flexibility to capitalise on the significant growth opportunities in the industry. Overall, we continue to believe that a portfolio which has a 70% exposure to origin and destination cargo and 75% exposure to faster growing markets will enable us to deliver enhanced shareholder value over the long term,” Sultan Ahmed concluded.
