Dubai-headquartered global port operator DP World has reported robust revenue growth that it said was supported by acquisitions and strong growth in India, Australia, and UK.
The stellar figures reported on Thursday showed that ports are benefitting from the container boom as much as lines, with significant profit margins.
DP World’s revenue during the first half of 2021 increased to $4.9bn, a 21.3% improvement compared with the first six months of last year.
Adjusted Ebitda increased 18.2% to $1.8bn and the Ebitda margin for the first six months of the year stood at 36.7%. The adjusted Ebitda margin for like operations came in at 38.5%.
Profit for the period attributable to owners of the company increased by 51.9% to $475m.
DP World said higher consumer spending and the rebound in global trade also contributed to its strong performance.
“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,” said DP World group chairman and CEO Sultan Ahmed Bin Sulayem.
"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 World's ability to continue to deliver sustainable returns."
Value-added acquisitions
Bin Sulayem said DP World continued to make positive progress with its capital recycling programme. This, combined with the strong operational performance, left the company well positioned to deliver on its 2022 combined leverage target, including affiliated Port & Free Zone World, of less than four times net debt to adjusted Ebitda.
Capital expenditure investment reached $687m across its existing portfolio during the first half of the year.
The company’s capital expenditure guidance for 2021 stands at approximately $1.2bn, with investments planned in the United Arab Emirates, Canada, Jeddah in Saudi Arabia, Berbera in Somaliland, Sokhna in Egypt, Luanda in Angola, Callao in Peru, and UK subsidiaries P&O Ferries and the London Gateway container terminal.
Bin Sulayem said recently announced acquisitions of Imperial Logistics and supply chain solutions provider syncreon would bring value-add capabilities in high growth verticals and markets, which would allow DP World to offer a “more compelling set of supply chain solutions”.
