DP World announces robust financial results for the year ended 31 December 2019. On a reported basis, revenue grew 36.1% and adjusted EBITDA increased 17.7% with adjusted EBITDA margin of 43%, delivering profit attributable to owners of the Company, before separately disclosed items, of $1,328 million, up 4.6% and EPS of 160.0 US cents, the company said in its release.
Results Highlights
Ø Revenue of $7,686 million
Revenue growth of 36.1% driven by acquisitions including P&O Ferries (UK), Topaz Energy & Marine (UAE) and the two terminals in Chile (Puerto Central and Puerto Lirquen) as well as the full year impact from Continental Warehousing Corporation (India), Cosmos Agencia Maritima (Peru) and Unifeeder (Denmark), and the consolidation of Australia region.
Like-for-like revenue increased by 2.3% driven by 16.0% growth in non-container revenue.
Ø Adjusted EBITDA of $3,306 million and adjusted EBITDA margin of 43.0%
Adjusted EBITDA grew 17.7% and achieved an EBITDA margin for the full year of 43.0%.
Like-for-like adjusted EBITDA margin was at 49.6.%.
Ø Profit for the period attributable to owners of the Company of $1,328 million
Strong adjusted EBITDA growth resulted in a 4.6% increase in profit attributable to owners of the Company before separately disclosed items on a reported basis and 5.4% growth on a like-for-like basis at constant currency.
Ø Strong cash generation and robust balance sheet
Cash from operating activities was $2,462 million.
Free cash flow (post cash tax maintenance capital expenditure and pre-dividends) amounted to $2,058 million.
Leverage (Adjusted Net Debt to adjusted EBITDA) at 3.9 times. Pre IFRS 16 leverage stands at 3.4 times.
Ø Proposed Total dividend per share of 40 US cents
Proposed ordinary dividend of 40 US cents which is broadly in line with historic pay-out ratio.
Ø Bond Transaction Executed at Record Levels
Raised $2.3bn through issuance of long-term bonds at record low rates to remove refinancing risk.
Further strengthens balance sheet and offers financial flexibility.
Ø Continued Investment Across the Portfolio
Ports & Terminals investments include two new terminals in Chile (Puerto Central and Puerto Lirquen) and consolidation of terminals in Australia.
Logistics investment includes acquisition of Pan-European logistics platform of P&O Ferries and Marine logistics operator, Topaz Marine & Energy.
Capital expenditure of $1,146 million invested across the existing portfolio.
In 2019, gross global capacity was at 91.8 million TEU. Consolidated capacity was at 54.2 million TEU.
Capital expenditure guidance for 2020 is up to $1.4 billion with investments planned in UAE, Prince Rupert (Canada), London Gateway (United Kingdom), Jeddah (Saudi Arabia), Callao (Peru), Sokhna (Egypt) and Berbera (Somaliland).
Posorja, the only deep-water port in Ecuador with capacity of 750k TEU opened on time and on budget.
30-year concession renewal at Jeddah Islamic Port, largest port and hub that connects East-West cargo in the Kingdom of Saudi Arabia.