DP World revenues reach AED 12.7 billion in H1 2019
Dubai International Ports Group (DP World) announced a strong financial results for the first six months of the year ended June 30, 2019.
DP World has announced strong financial results for the first six months of the year ending June 30, 2019.
Earnings before interest, tax, depreciation and amortization (EBITDA) grew by 21.9%, while revenues were up 26.8%.
According to the financial results, revenue was $ 3.463 billion (about AED 12.7 billion), up 31.9% on an advertised basis, supported by acquisitions and growth in non-container revenue, and 10.8% on a comparable growth basis, driven by growth Non-container revenue.
The financial results showed an adjusted EBITDA growth of 21.9%, while adjusted EBITDA margin for the first half of the year was 46.5%.
Adjusted EBITDA grew 9.9% YoY by a margin of 51.4%.
Profit for the period rose by 26.8 per cent to $ 753 million. Cash generation from operating activities remained strong at $ 1.025 billion in the first half of 2019.
The results confirmed that Fitch Ratings maintained its DP World credit rating at BBB + with a stable outlook, thanks to the flexible and diverse nature of its portfolio.
DP World raised $ 1.3 billion by issuing long-term bonds at record low interest rates, which boost the balance sheet and provide financial flexibility.
Sultan Ahmed Bin Sulayem, Chairman and Chief Executive Officer of DP World, said the company's strategy to develop new and innovative products and services, and management wisdom, contributed to outstanding financial results during the first six months of this year.
He stressed that DP World's excellent performance in light of the difficult economic conditions in the world is a clear demonstration of the company's flexibility, its strategy to achieve growth, and diversification of its global investment portfolio to include energy, marine services, transport sustainability and other activities.
He added that the semi-annual financial results were in line with the company's expectations, stressing that DP World operates through an in-depth understanding of markets, innovation and operational excellence in 45 countries.
Growth in profits
Bin Sulayem added: `` DP World is pleased to announce a profit growth based on a 22% year-on-year comparative growth in the first half of 2019 and a profit of $ 753 million. '' In an uncertain business environment, the Group's investment portfolio is once again underlined.
“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 existing portfolio,” he said, adding that in the future the Group aims to integrate new acquisitions and provide synergies required to provide integrated, smart Will improve the quality of its profits and enhance revenue.
“While the near-term trade outlook remains uncertain, due to global trade disputes and regional geopolitical conditions that create uncertainty in the container market, the strong financial performance for the first six months contributes to a good position that enables us to achieve slightly higher results,” he concluded. Market forecast for the whole year.
■ Investments in the ports and terminals sector include two new assets in Chile, Fraser Surrey Dox (Canada), and the consolidation of assets in Australia.
■ Investments in the logistics and offshore sector include the acquisition of P&O Ferrez's comprehensive European logistics platform and the offshore logistics operator Topaz Energy and Navigation.
■ Capital expenditure amounted to $ 636 million invested in the current portfolio during the first half of 2019.
The Capital Spending Directive for 2019 remains unchanged at up to $ 1.4 billion, including planned investments in the UAE, Bosorga in Ecuador, Berbera in Somaliland, Sokhna in Egypt, London Gateway »UK.
■ Bossorga, the only deep water port in Ecuador, with a capacity of 750,000 TEUs, was opened on time and on budget.