Dubai-based DP World, a leading global shipping terminal operator, today announced strong financial results for the six months to June 30, delivering profit attributable to owners of $608 million, up 50.2 per cent.

On a reported basis, revenue grew 10.2 per cent to $2.094 billion compared to the same period last year.

Adjusted EBITDA increased by 27.2 per cent to $1.176 billion and adjusted EBITDA margin stood at 56.2 per cent.

Earnings per share for H1 was 73.2 US cents.

On a like-for-like basis, revenue grew 2.5 per cent and adjusted EBITDA increased by 6.6 per cent, adjusted EBITDA margin 51.8 per cent and attributable earnings were up 4.3 per cent, reflecting the challenging global trade environment, the company said.

The company’s revenue growth was supported by the acquisitions of Jebel Ali Free Zone (UAE) and Prince Rupert (Canada). Containerised revenue per TEU (twenty-foot equivalent unit) grew 5.4 per cent on a like-for-like basis. Non-container revenue decreased by 0.9 per cent on a like-for-like basis and increased by 17.9 per cent on a reported basis, it said.

Adjusted EBITDA margin reached a new high of 56.2 per cent reflecting the Jebel Ali Free Zone acquisition and increased contribution from other higher margin locations. Like-for-like adjusted EBITDA margin was at 51.8 per cent.

The company successfully raised $1.2 billion in a new seven-year sukuk transaction at significantly improved terms, refinancing $1.1 billion of the existing 2017 sukuk through a tender offer and extending the debt maturity profile.

DP World made a capital expenditure of $586 million, investing across the portfolio during the first half of the year. Capital expenditure guidance for 2016 remains unchanged at between $1.2 billion and $1.4 billion with investments planned into Jebel Ali port (UAE), Jebel Ali Free Zone (UAE), London Gateway (UK), Prince Rupert (Canada), JNP Mumbai (India), and Yarimca (Turkey).

DP World Group chairman and CEO Sultan Ahmed Bin Sulayem said: “DP World is pleased to announce a strong set of first half results, with 50 per cent year-on-year earnings growth, and 56 per cent adjusted EBITDA margins. The more modest like-for-like earnings growth is a reflection of the challenging trade environment. This financial performance has been achieved despite uncertain market conditions, which once again demonstrates the resilient nature of our portfolio. In 2016, we have invested $586 million of capex in key growth markets, and this investment leaves us well placed to capitalise on the significant medium to long-term growth potential of this industry.    

“We will maintain the existing shape of our ports portfolio that has a 70% exposure to origin and destination cargo and 75 per cent exposure to faster growing markets. This positioning will enable us to deliver both earnings growth and shareholder value over the long term.

“The outlook for trade growth remains uncertain, however, we believe our portfolio is well positioned to continue to outperform the market. We remain focused on delivering relevant new capacity in the right markets through disciplined investment, improving efficiencies and managing costs to drive profitability.

“Looking ahead to the second half of the year, we expect throughput performance to improve, and like-for-like financial performance (excluding one-off items and foreign exchange movements) to be similar to the first half.  Overall, the strong financial performance of the first six months leaves us well placed to meet full-year market expectations,” Bin Sulayem said. – TradeArabia News Service