DP World Reports Strong 1H2021 Financial Results

DUBAI, (UrduPoint / Pakistan Point News / WAM - 19th Aug, 2021) DP World Limited (DP World) has announced strong financial results for the first six months ending 30th June 2021, with EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortisation) growing by 18.2 percent year-on-year.

According to DP World, revenues stood at US$4.94 billion in the first six months, a gain of 21.3 percent, supported by acquisitions and strong growth in India, Australia, and the UK, whereas like-for-like revenue increased by 9.0 percent.

Adjusted EBITDA stood at $1,813 million, with an adjusted margin of 36.7 percent, and an increase of 18.2 percent. EBITDA margin for the half-year stood at 36.7 percent, whereas like-for-like adjusted EBITDA margin was at 38.5 percent.

Profit for the period attributable to its owners got increased to $475 million, meanwhile profit attributable to owners before separately disclosed items increased 51.9 percent on reported basis and 39.4 percent on a like-for-like basis.

In a statement, the company said that it registered robust cash generation, with cash from operating activities remains strong at $1,490 million in H1 2021, compared to $1,124 million in H1 2020. 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.

Regarding its selective investment in key growth markets, DP World invested $687 million in capital expenditure 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 the UAE, Canada, Jeddah (Saudi Arabia), Berbera (Somaliland), Sokhna (Egypt), Luanda (Angola), P&O Ferries, London Gateway (UK) and Callao (Peru).

On its acquisitions to bring value-add capabilities, exposure to high growth markets and long-term relationship with cargo owners, the company announced acquisitions of syncreon and Imperial Logistics. The company said that acquisitions bring value-add capabilities in fast growing markets and verticals, as well as add to long-term relationship with cargo owners.

Portfolio has delivered strong performance in H1 2021 on higher consumer spend and rebound in global trade. "Near term outlook remains positive, but we expect growth rates to moderate," added the statement. DP World will continue focusing on delivering integrated supply chain solutions to cargo owners to drive growth and returns.

Sultan Ahmed bin Sulayem, DP World Group Chairman and CEO, 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," added bin Sulayem.

He highlighted that the company continues to make positive progress with capital recycling programme and this combined with the strong operational performance, leaves DP World well positioned to deliver on its 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," he concluded.