DP World like-for-like profit rises 26% in H1 2013
DP World has recorded a 26% like-for-like profit increase for the six months ended June 30, 2013 compared to the same period last year, said in the company's press release. In its 2013 H1 financial results published on August 29, the group’s profits for the period attributable to the owners of the company was US$264 million. In H1 2012 it was US$242 million.
DP World also achieved revenues of US$1,509 million in the first six months of the year. Like-for-like revenue increased 2.4% driven by a 6.2% increase in container revenue per TEU. Like-for-like non-container revenue increased 3.4%
DP World chairman Sultan Ahmed Bin Sulayem said: “DP World is pleased to announce another strong set of first half results in spite of challenging market conditions. We are on track with our substantial investment plan and on schedule to deliver an additional ten million TEU capacity over the next two years.
“Our portfolio is well positioned to capitalise on the significant medium to long-term growth potential of this industry due to our focus on the faster growing emerging markets and stable origin and destination cargo.”
The Middle East, Europe and Africa region delivered a strong performance with adjusted EBITDA improving by 8%. Adjusted EBITDA margin expanded to above 50% as cargo mix favoured higher margin origin & destination (O&D) and non-container traffic, particularly in the UAE. The resilience in the group’s Middle East and Africa portfolio continues to mitigate the weaker Europe market. Revenue of US$1,025 million is broadly flat year-on-year despite softer volumes as container revenue per TEU increased 6.3%.
The UAE delivered another solid performance growing container revenue by 8.5% and non-container revenue by 5% as the local economy remained relatively robust. Growth continued to be driven by tourism and logistics, while a recovery in the real estate sector has benefited non-container volumes.
Group chief executive Mohammed Sharaf added: “Despite tough market conditions, we have reported an excellent set of financial results for the first six months of 2013. We believe 9.5% like-for-like EBITDA growth, 26% like-for-like EPS growth and a 47.1% like-for-like adjusted EBITDA margin is pleasing given some of the headwinds that we have faced.
“We continue to actively manage our portfolio, having monetised assets in Hong Kong this year, with an expectation to recycle this cash into projects that will deliver a higher return on our capital. Our substantial investment programme remains unchanged and on schedule as we expect to add ten million TEU of capacity over the next two years.
"Crucially our balance sheet remains strong, which gives us the ability to invest in the future growth of our current portfolio, and the flexibility to make new investments should the right opportunities arise as well as delivering enhanced returns to shareholders over the medium term.
“The outlook remains uncertain and market conditions in some regions are undoubtedly challenging. We continue to focus on delivering efficiencies, containing costs and handling higher margin containers to drive profitability and, in light of improving momentum seen through the first half, remain confident of meeting full year expectations. Our business is well positioned for medium to long-term growth and we are adapting to the evolving needs of our customers.
"The first half financial performance is a strong indicator of the resilience of our portfolio and we believe we are well positioned to continue to outperform the market in the medium term.”
Investment in terminals in the Middle East, Europe and Africa region in the first six months of the year was US$497 million. The investment included Jebel Ali (UAE) and London Gateway (UK). One million TEU capacity was added at Jebel Ali (UAE) in the second quarter and London Gateway (UK) is on track to deliver its planned new capacity on schedule.