Dubai: DP World declares strong first half results for 2017
DP World announced strong financial results for the first six months of 2017. In a report, DP World declared that revenue grew 9.6% and adjusted earnings before interest, tax, depreciation and amortization (EBITDA) increased by 4.2%.
Adjusted EBITDA margin was 53.4%, delivering profit attributable to owners of the company, before separately disclosed items, of $606mn and earnings per share (EPS) of ¢73.0. On a like-for-like basis, revenue grew 3.0% and adjusted EBITDA increased by 7.0%, adjusted EBITDA margin by 54.8%, and attributable earnings up by 15.8%, reflecting the improved trading environment. DP World reported a loss in separately disclosed items of $63mn.
Sultan Ahmed Bin Sulayem, chairman and CEO, DP World Group, commented: DP World is pleased to announce a solid set of first half results with attributable earnings of $606mn, and like-for-like earnings growth of 15.8%. 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.
In the first half of 2017, we have invested $595mn of capex in key growth markets, and announced over $170mn 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.
Our balance sheet remains strong and we continue to generate high levels of cashflow, 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.
Looking ahead to the second half of the year, we expect higher levels of throughput to be maintained.”
DP World was recently upgraded by Fitch Ratings to BBB+ from BBB with stable outlook, after both Fitch and Moodys upgraded the rating by one notch last year. The group is well placed to meet full year 2017 market expectations.