Dubai Ports World reported that its revenues for the year ended December 31, 2019 increased on the basis of accounting reports, by 36.1%, and the adjusted profits before deduction of interest, taxes, depreciation and amortization grew by 17.7%. Profit margin (adjusted before deduction of interest, taxes, depreciation and amortization) increased by 43%, achieving profits attributable to the owners of the company, before the items to be disclosed separately, amounting to $ 1.328 billion (AED 4.89 billion), an increase of 4.6%, and earnings per share of 160 US cents.

Company revenue

In detail, DP World achieved revenues of $ 7.686 billion (28.3 billion dirhams) during the past year, confirming that its revenues grew by 36.1% with the support of acquisitions, including P&O Virus (UK), and « Topaz Energy and Navigation (UAE), Puerto Central and Puerto Lercin stations in Chile, in addition to the influence of the Continental Warehouse Corporation (India) for the whole year, Cosmos Nationality Maritima (Peru), and Unifeder (Denmark), and "incorporation" (Australia).

Returns also increased on the basis of a similar comparison by 2.3% driven by a 16% growth in returns from goods not packed in containers, pointing out that the adjusted profits before deduction of interest, taxes, depreciation and consumption amounted to $ 3.306 billion, and achieved the adjusted profit margin before deduction of interest, taxes and depreciation And consumption increased by 17.7%, while achieving a full year margin of 43%. The adjusted profit margin, before deduction of interest, taxes, depreciation and amortization based on an ideal comparison, was 49.6%.

Profit growth

According to DP World data, the profits of the period attributable to the owners of the company amounted to $ 1.328 billion (4.89 billion dirhams), where the strong growth in the adjusted profits, before deduction of interest, taxes, depreciation and consumption, contributed to the increase in profits attributable to the owners of the companies, before the items to be disclosed in a way Separated by 4.6% quarterly, and growth by 5.4% on the basis of homeopathy and fixed currency. It showed that cash generation and the balance sheet had a strong performance, as cash from operating activities amounted to $ 2.462 billion. The value of free cash flows was 2.058 billion dollars.

Leverage (from adjusted net debt to adjusted earnings before deduction of interest, taxes, depreciation and amortization) has grown to 3.9 times. The net leverage level before the adoption of IFRS 16 was an average of 3.4 times.

Ordinary shares

The company’s data indicated that the ordinary dividend distribution amounted to 40 US cents per share, to generally reflect the historical dividend percentage. The company also raised $ 2.3 billion by issuing long-term bonds at record low interest rates to eliminate the risk of refinancing.

The Chairman of the Board and CEO of Dubai Ports World Group, Sultan Ahmed Bin Sulayem, said during a press conference yesterday, that “(DP World) achieved a growth in profits based on an optimal comparison of 5.4% in 2019, and the profits attributable to the owners of the company at a value 1.328 billion dollars. Adjusted profits before deduction of interest, taxes, depreciation and amortization increased by 17.7% to $ 3.306 billion, with margins of 43% quarterly and 49.6% on the basis of optimal comparison. This strong financial performance was achieved in a business environment of uncertainty, which once again highlights the strength of our portfolio. ”

He added: “We have continued to make progress in our strategy to provide integrated supply chain service solutions for cargo owners, and we have focused our efforts on building integrated and comprehensive capabilities for many sectors, including the automotive, oil and gas, and fast-moving consumer goods sector. We are pleased to announce that the owners of the goods have responded positively, and we are currently providing effective solutions to our customers, which bodes well for the future. ”

Private property

He pointed out that «recently, after many deliberations, DP World made a decision to withdraw from the stock exchange and return to private property. The strength and flexibility that our business constantly shows, over the course of various cycles, is due to the investment made by the group over the years in response to urgent changes in our sector, pointing out that our ability to adapt and change was a key factor in our success, and we must continue to develop in order to Continue to succeed. We believe that this long-term approach adopted by the company is not in line with the short-term thinking of the stock markets, and therefore, the next stage of development will take place after DP World has become a private company. ”

Bin Sulayem continued: “After the planned withdrawal from the stock exchange, the leverage will witness a temporary increase in the budget, but we are confident that the leverage will decrease, while our commitment continues to achieve a strong rating for the degree of investment in the medium term, and the company continues to generate high levels of cash flow. . Besides the disciplined investment and potential recycling of capital, we have sufficient flexibility to maintain a strong balance sheet. Our immediate focus is on merging our acquisitions and exploring synergies, with the aim of providing a set of smart, integrated solutions that improve the quality of our profits and generate returns. ”

On the outbreak of the Corona virus, Bin Sulayem said, “The short-term trade prospects are still cause for concern due to global trade disputes, the spread of the (Covid-19) virus and regional geopolitical situations, which impedes commercial traffic, but we (DP World) are in a good position to respond. In the short term by focusing on disciplined investment and cost base management to protect profitability. In general, we are still positive regarding the sector in the medium and long term. ”

He pointed out that the Board of Directors of "Dubai Ports" recommends distributing $ 332 million in dividends, at $ 40 US cents per share, in line with the previous policy of maintaining a dividend yield of about 20%.

Global trade outlook

"DP World" confirmed that the expectations of world trade are still uncertain due to the supply chain disruption caused by the outbreak of the "Covid-19" virus.

“We continue to focus on maintaining a disciplined investment approach to delivering integrated supply chain solutions to cargo owners,” she added. For 2020, we will focus on integrating our recent acquisitions and managing costs to protect profitability. ”

• $ 332 million recommended the Board of Directors to distribute them as dividends by 40 cents per share.

Achieving strong financial performance in an uncertain business environment that highlights the strength of the company's portfolio.