DUBAI-based global marine terminal operator DP World has revealed strong financial results for the 12 months ending December 31, 2017, which saw the company deliver earnings in excess of $1.2 billion.
On a reported basis, revenue grew 13.2 per cent to $4.715 billion and adjusted EBITDA increased 9.1 per cent to $2.469 billion with adjusted EBITDA margin of 52.4 per cent. Profit attributable to owners of the company, before separately disclosed items, was $1.209 billion, up 7.3 per cent, and EPS was 145.6 US cents, said a company statement.
On a like-for-like basis, revenue grew 6 per cent, adjusted EBITDA increased by 8 per cent with adjusted EBITDA margin of 53.2 per cent, and earnings attributable to owners of the company increased 15.1 per cent, it said.
The company’s revenue growth was supported by the strong volume growth across all three DP World regions. Like-for-like revenue increased by 6 per cent driven by a 6.9 per cent increase in total containerised revenue.
Like-for-like containerised revenue per TEU (twenty-foot equivalent unit) grew 0.7 per cent and total revenue per TEU remained broadly flat (-0.2 per cent).
It said continued investment in high quality long-term assets is expected to drive long-term profitable growth. It made a capital expenditure of $1.090 billion across the portfolio during the year, below the group’s guidance of approximately $1.200 billion in 2017.
In 2017, gross global capacity was at 88 million TEU and is expected to grow to over 100 million TEU of gross capacity by 2020, subject to market demand. Consolidated capacity was at 50 million TEU up from 42 million TEU in 2016 including the consolidation of Pusan (South Korea).
“We expect capital expenditure in 2018 to be up to $1.4 billion with investment planned mainly into UAE, Posorja (Ecuador), Berbera (Somaliland), Pusan (South Korea), Maputo (Mozambique) and Sokhna (Egypt),” the statement said.
DP World has partnered with the Government of India-sponsored National Investment and Infrastructure Fund (NIIF) to create an investment platform of up to $3 billion of equity to acquire assets and develop projects in the ports, transportation and logistics sector in India.
The partnership will also look at opportunities beyond sea ports such as river ports and transportation, freight corridors, special economic zones, inland container terminals, and logistics infrastructure including cold storage, it said.
DP World acquired an additional 66.67 per cent stake in Embraport in the Port of Santos (Brazil) from Odebrecht Transport (OTP) to take its shareholding to 100 per cent. The terminal has an annual capacity of 1.2 million TEU and has been rebranded to DP World Santos.
Looking ahead into 2018, the company expects to continue to grow ahead of the market and see increased contributions from its new developments, it stated.
