DP World reports strong 1H2021 financial results
DUBAI
This significant growth once again demonstrates that we are in the right locations and a focus on origin and destination cargo will continue to deliver the right balance between growth and resilience.
Sultan Ahmed Bin Sulayem, Group Chairman and CEO of DP World
DP World Limited has announced strong financial results for the six months to 30 June 2021 with EBITDA growing 18.2% year-on-year.
Results Highlights
- Revenue of $4,945 million (Revenue growth of 21.3% on reported basis)
- Revenue growth of 21.3% supported by acquisitions and strong growth in India, Australia, and UK.
- Like-for-like revenue increased by 9.0%.
- Adjusted EBITDA of $1,813 million and adjusted EBITDA margin of 36.7%
- Adjusted EBITDA increased 18.2%, and EBITDA margin for the half-year stood at 36.7%. Like-for-like adjusted EBITDA margin of 38.5%.
- Profit for the period attributable to owners of the Company increased to $475 million
Profit attributable to owners of the Company before separately disclosed items increased 51.9% on reported basis and 39.4% on a like-for-like basis
- Robust Cash Generation
- Cash from operating activities remains strong at $1,490 million in 1H2021 compared to $1,124 million in 1H2020.
- Leverage (Net debt to annualised adjusted EBITDA) decreased to 3.5 times (Pre-IFRS16) from 3.7 times at FY2020. On a post-IFRS16 basis, net leverage stands at 4.0 times compared to 4.3 times at FY2020.
- DP World credit rating remains investment grade at BBB- with Stable Outlook by Fitch and Baa3 with Stable Outlook by Moody’s.
Selective Investment in Key Growth Markets
- Capital expenditure of $687 million invested across the existing portfolio during the first half of the year.
- Capital expenditure guidance for 2021 is for approximately $1.2 billion with investments planned into UAE, Canada, Jeddah (Saudi Arabia), Berbera (Somaliland), Sokhna (Egypt), Luanda (Angola), P&O Ferries, London Gateway (UK) and Callao (Peru).
Acquisitions to bring value-add capabilities, exposure to high growth markets and long-term relationship with cargo owners
- Announced acquisitions of syncreon and Imperial Logistics.
- Acquisitions bring value-add capabilities in fast growing markets and verticals.
- Adds long-term relationship with cargo owners.
Strong 1H2021 Performance, Near Term Outlook Positive
- Portfolio has delivered strong performance in 1H2021 on higher consumer spend and rebound in global trade.
- Near term outlook remains positive but we expect growth rates to moderate.
- DPW focused on delivering integrated supply chain solutions to cargo owners to drive growth and returns.
DP World Group Chairman and CEO, Sultan Ahmed Bin Sulayem, said: “We are delighted with the strong set of first half results with adjusted EBITDA growing 18.2% and attributable earnings rising 51.9%. This significant growth once again demonstrates that we are in the right locations and a focus on origin and destination cargo will continue to deliver the right balance between growth and resilience.
In recent years we have seen cargo owners respond positively to our integrated end-to-end product offering and we aim to continue with our drive to enable trade. Our recently announced acquisitions of Imperial Logistics and syncreon bring value-add capabilities in high growth verticals and markets, which will allow us to offer a more compelling set of supply chain solutions. By leveraging our best-in-class infrastructure across inland logistics, ports & terminals, economic zones and marine logistics network, DP World aims to lower inefficiencies and provide improved connectivity in fast growing trade lanes such as Asia, Middle East & Africa.
“Importantly, we continue to make positive progress with our capital recycling program and this combined with the strong operational performance, leaves us well positioned to deliver on our 2022 combined (DP World and PFZW) leverage target of less than 4x Net Debt to adjusted EBITDA (Pre IFRS16).
“Overall, the near-term outlook remains positive, and while we are mindful that the Covid-19 pandemic and geopolitical uncertainty could once-again disrupt the global economic recovery, we remain positive on the medium to long-term fundamentals of the industry and DP Worlds ability to continue to deliver sustainable returns“.
Source : DP World
