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DP World announces strong first half profit, revenue, volume growth

DP World which manages container terminals all over the world has announced a 15.8 per cent increase in profits to 606 million US Dollars for the first half of the calendar year 2017 on the back of 2.2 billion US Dollars in revenue.

Gross throughput which includes throughput at all terminals where the company has operational control as well as minority investments, rose by 8.2 per cent to 34 million teu. Throughput at terminals where DP Word has control was up 22.4 per cent to 17.9 million teu.

We have seen a pick-up in global trade particularly in the second quarter of the calendar year 2017, and that combined with the ramp up in our recent investments in Yarimca (Turkey), London Gateway (UK), Rotterdam (Netherlands) and JNPT Mumbai (India), has delivered ahead-of-market volume growth, said group chairman and CEO, Sultan Ahmed Bin Sulayem.

Revenue rose by 3.0 per cent on a like-for-like basis and adjusted EBITDA increased by 7.0 per cent to 54.8 per cent

The Dubai-based global ports and trade zone developer and operator made capital investments totaling 595 million US Dollars in the first half.  DP World expects to invest around 1.2 billion US Dollars in facilities over the course of 2017, including Jebel Ali, London Gateway; Prince Rupert in Canada and Berbera in Somaliland.

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, said Bin Sulayam.

DP World said volume growth was in part due to gains in market share reaped after the resetting of the alliances in April.

These developments have contributed to the growth of our portfolio and we have been able to achieve earnings growth on a like-for-like basis, said a statement accompanying the results announcement.

DP World added 1.5 million teu of capacity to Terminal 3 at Jebel Ali in July.  The company also recently opened a third berth at London Gateway, expanding its capacity by 0.8 million teu.

Further capacity additions are planned for this year at Prince Rupert in Canada and Berbera in Somaliland.

The company said market conditions were solid in most regions during the first half of the year.  Volumes in the United Arab Emirates rose by 4.3 per cent during the period with EMEA region volumes up 5.4 per cent.

Markets conditions in the Asia Pacific and Indian Subcontinent region were generally positive. Volume growth in the region of 97.5 per cent was boosted by the consolidation of Pusan (South Korea) and the like-for-like growth of 2.9 per cent is a better reflection of the performance.

Volumes in Australia and the Americas rose by more than 15 per cent. Revenues grew 9.7 per cent to 363 million US Dollars but profits were hit by unfavorable foreign exchange movements in Brazil.

 


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