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DP World, half-year financial results

Global trade enabler DP World today announces robust financial results for the six months to 30 June 2018. On a reported basis, revenue grew 14.4% and adjusted EBITDA increased by 7.9%. Adjusted EBITDA margin was 50.3%, delivering profit attributable to owners of the Company, before separately disclosed items1 , of $593 million and EPS of 71.5 US cents. On a like-for-like basis, revenue grew 3.0% and adjusted EBITDA increased by 4.2% with adjusted EBITDA margin of 54.4%, and attributable earnings to owners of the Company increased up by 5.2%, reflecting the stable trading environment.

Results Highlights

➢ Revenue of $2,626 million (Revenue growth of 14.4% on reported and 3.0% on likefor-like

▪ Revenue growth of 14.4% supported by the volume growth across all three regions and the
impact of new acquisitions including Drydocks World LLC (Drydocks), Dubai Maritime City
(DMC) and Cosmos Agencia Marítima (CAM).
▪ Like-for-like revenue increased by 3.0% driven by a 4.6% increase in total containerized

➢ Adjusted EBITDA of $1,322 million and adjusted EBITDA margin of 50.3% (Like-forlike
adjusted EBITDA margin at 54.4%)

▪ Adjusted EBITDA grew 7.9% and EBITDA margin for the half year at 50.3%. Like-for-like
adjusted EBITDA grew 4.2% with a margin of 54.4%.
▪ EBITDA margin declined due to the consolidation of lower margin Maritime services businesses.

➢ Profit for the period attributable to owners of the Company of $593 million

▪ Profit attributable to owners of the Company before separately disclosed items dropped 2.1%
on a reported basis but grew 5.2% on a like-for-like basis.
▪ Profit declined due to the deconsolidation of Doraleh (Djibouti) and consolidation of DP World
Santos (Brazil), which remains in ramp up stage.

➢ Strong Cash generation and robust balance sheet

▪ Cash from operating activities remains strong at $979 million in 1H2018, slightly lower than
$1,010 million in 1H2017.
▪ Leverage (Net debt to annualised adjusted EBITDA) increased to 2.9 times from 2.6 times at
▪ DP World was again upgraded by the rating agency Moody’s from Baa2 to Baa1 with a stable
outlook following the one notch upgrade in 2016. Fitch Ratings also upgraded DP World from
BBB to BBB+ in July 2017. Both rating agencies have upgraded DP World by two notches in 2

➢ Continued investment in long-term assets and expansion into complementary sectors

▪ Capital expenditure of $439 million invested across the portfolio during the first half of the year.
▪ Capital expenditure guidance for 2018 remains unchanged at up to $1.4 billion with investments
planned into UAE, Posorja (Ecuador), Berbera (Somaliland), Sokhna (Egypt) and London
Gateway (UK).
▪ The acquisition of Drydocks, which closed in the beginning of 2018, is performing in line with
expectations and we have seen increased contribution to our revenue line. At 1H2018, noncontainerized
revenue accounted for approximately 37% of total revenue, up from 31% in
▪ Furthermore, DP World continued to invest in complementary sectors and acquired three more
strategic assets – the integrated multimodal logistics players Continental Warehousing
Corporation (CWC) in India, Cosmos Agencia Marítima in Peru, and the Unifeeder Group in
Denmark, which operates the largest container common user feeder and growing shortsea
network in Europe. Also, we have signed a 20-year concession to build and operate a modern
logistics hub outside of Bamako, the capital and largest city of the Republic of Mali.
▪ Aside from our investments in complementary sectors, we recently won a 30-year concession
for the management and development of a greenfield port project at Banana in the Democratic
Republic of the Congo, which despite being Africa’s third-most populous country, currently has
no direct deep-sea port.

➢ Global trade continues to grow but outlook is uncertain

▪ The first half of 2018 continues to see an upswing in global trade with all three regions
delivering growth however geopolitical headwinds and recent changes to trade policies continue
to pose uncertainty for the container market.
▪ We continue to focus on delivering operational excellence and maintaining our disciplined
approach to investment to ensure we remain the port operator of choice as well as
strengthening our product offering to play a wider role in the global supply chain as a trade


Read more here.

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