DP World Limited has announced strong financial results for the six months to 30 June 2022 with total revenue growing 60.4% year-on-year and 20.1% on a like-for-like basis.
Results Highlights
Ø Revenue of $7,932 million (Like-for-like revenue growth of 20.1%)
§ Revenue growth of 60.4% supported by acquisitions, strong performance of feedering services and growth in high margin cargo.
§ Container revenue per TEU increasing by 9.2% driven by higher demand for storage.
Ø Adjusted EBITDA of $2,441 million and adjusted EBITDA margin of 30.8%
Ø Profit for the period attributable to owners of the Company increased to $721 million
§ Profit attributable to owners of the Company before separately disclosed items increased 51.8% on reported basis and 39.2% on a like-for-like basis.
Ø Robust cash generation
Ø Broadening of strategic partnerships strengthens balance sheet and drives long term value
Ø Selective Investment in Key Growth Markets
§ Capital expenditure of $741 million ($687 million in 2021) invested across the existing portfolio during the first half of the year.
§ Capital expenditure guidance for 2022 is for up to $1.4 billion with investments planned into UAE, Jeddah (Saudi Arabia), London Gateway (UK), Sokhna (Egypt), Senegal and Callao (Peru).
Ø Transformation of business to drive revenue synergies and long-term relationship with cargo owners
§ New logistics assets bring value-add capabilities in fast growing markets and verticals.
§ Near-term focus on continued business transformation to drive revenue synergies.
§ Deliver value add solutions to cargo owners by leveraging our best-in-class infrastructure across logistics, ports & terminals, economic zones, digital and marine services.
Ø Strong 1H2022 Performance, Outlook uncertain
§ Outlook is uncertain due to geopolitics, higher inflationary environment, currency fluctuations and continued supply chain disruptions.
§ DP World remains positive on medium to long-term outlook for global trade and is 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, commented:
“We are delighted to report a record set of first half results with adjusted EBITDA growing 34.6% and attributable earnings rising 51.8%. This significant growth demonstrates that our strategy to focus on high margin cargo and to offer customized supply chain solutions will provide sustainable returns in the long term.
Encouragingly, cargo owners continue to respond positively to our end-to-end product offering and we are focused on integrating our recent logistics acquisitions to further drive revenue synergies. We continue to invest in high growth verticals and markets to offer compelling supply chain solutions, and by leveraging our best-in-class infrastructure across logistics, ports & terminals, economic zones, digital and marine services, DP World aims to lower inefficiencies and improve connectivity in key trade lanes.
In recent months we have announced several transactions to raise approximately $9 billion. This strengthening of the balance sheet allowed us to achieve our 2022 leverage target of below 4x Net Debt to EBITDA, and this fresh capital also provides us with the flexibility to accelerate investment in key growth markets whilst maintaining an investment grade rating.
Overall, the strong first half performance leaves us well placed to deliver improved full year results. However, the near-term outlook remains uncertain due to the more challenging macro and geopolitical environment. Consequently, we expect growth rates to moderate in the second half of 2022. Nevertheless, we remain positive on the medium to long-term fundamentals of the industry and DP Worlds ability to continue to deliver sustainable returns.”
