Dubai-based port operator DP World saw a 15.8 percent rise in profit for the first half of 2017 on a like-for-like basis, earning USD 606 million amid improved trading environment.
“Encouragingly, after a challenging period, we have seen a pick-up in global trade particularly in the second quarter of the year, and that combined with the ramp up in our recent investments in Yarimca (Turkey), London Gateway (UK), Rotterdam (Netherlands) and JNP Mumbai (India), has delivered ahead-of-market volume growth,” DP World Group Chairman and CEO, Sultan Ahmed Bin Sulayem.
On a reported basis, revenue of USD 2.29 billion grew 9.6% supported by the strong volume growth across all three DP World regions. On a reported basis earnings remained flat (-0.3%).
Adjusted EBITDA of USD 1.22 billion increased by 4.2%, with an adjusted EBITDA margin of 53.4%.
On a like-for-like basis, revenue grew 3.0% and adjusted EBITDA increased by 7.0%, while adjusted EBITDA margin stood at 54.8%.
“In the first half of 2017, we have invested USD 595 million of Capex in key growth markets and announced over USD 170 million of acquisitions in our maritime business, which offers significant growth opportunities. These investments leave us well placed to deliver on our strategy to strengthen our port related services and capitalize on the significant medium to long-term growth potential of this industry,” Bin Sulayem added.
“Our balance sheet remains strong and we continue to generate high levels of cash flow, 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.”
As disclosed, cash from operating activities amounted to USD 1 billion, up from USD 905 million in the first half of 2016. Leverage, net debt to annualized adjusted EBITDA, decreased to 2.6 times from 2.8 times at the end of last year.
“Looking ahead to the second half of the year, we expect higher levels of throughput to be maintained. Overall, the steady financial performance of the first six months leaves us confident in meeting full-year market expectations.”