The global port operator attributed its strong results primarily to increased throughput at higher margin marine terminals and its integration of industrial logistics infrastructure firm Economic Zones World.
Port terminal operator DP World Limited increased profits attributable to the shareholders of the company 21.9 percent to $405 million in the first half of 2015, according to its most recent financial statements.
Profits attributable to owners of the company after “separately disclosed items,” more specifically $49 million of non-cash and unrealized cost in connection with the group’s convertible bond, stood at $364 million for the first half. Basic earnings per share was $0.49 per share before separately disclosed items and $0.44 per share after separately disclosed items.
DP World reported revenues of $1.9 billion for the first six months of the year, a 14.5 percent increase from $1.66 billion in the same period the previous year. Revenue per TEU from containerized cargo revenue was up 2.1 percent on a like-for-like basis, while non-containerized revenues grew 14.7 percent compared to the first half of 2014.
The company attributed the results primarily to increased throughput at higher margin marine terminals and its integration of industrial logistics infrastructure firm Economic Zones World (EZW), as well as the acquisition of Fairview Container Terminal in Prince Rupert, British Columbia.
The purchase of EZW and Fairview Terminals cost the company more than $3 billion and were part of a continued strategy of long-term asset investment, according to DP World. The company said it invested an additional $597 million in its existing terminal facilities and that it will increase capacity at its primary operation at Jebel Ali in Dubai, United Arab Emirates by an additional 2 million TEUs in the second half of 2015.
DP World projects it will operate terminals with approximately 85 million TEUs of capacity by the end of the year, with that total rising to 100 million TEUs by 2020.
“We are pleased to announce a strong set of results for the first six months of 2015, reporting earnings growth of 22% year on year, aided by the acquisition of EZW,” DP World Chairman, Sultan Ahmed Bin Sulayem said of the results. “This financial performance has been achieved despite uncertain market conditions, which once again demonstrates the well diversified and resilient nature of our portfolio. In 2015, we have invested over $3.5 billion in acquisitions and expansionary capex, and this investment leaves us well placed to capitalize on the significant medium to long-term growth potential of this industry.
“We remain on course to deliver over 100 million TEU of capacity by 2020, while maintaining the existing shape of our portfolio that has a 70% exposure to origin and destination cargo and 75% exposure to faster growing markets. This positioning will enable us to deliver both earnings growth and shareholder value over the long term.”
“We report solid first half financials with 14.5% revenue growth and 18.8% EBITDA growth,” added Group Chief Executive Mohammed Sharaf. “Encouragingly, like-for-like revenue growth continues to outpace throughput growth which demonstrates the pricing power within the portfolio.
“Our capex programme remains on track and we have added over 3 million TEU of new capacity in the first half of 2015 with our projects in Rotterdam (Netherlands) and Nhava Sheva (India) now operational. Yarimca (Turkey) and the second phase of Terminal 3 Jebel Ali (UAE) are on track for the second half of 2015. We believe this additional capacity will contribute to growth in the coming years and deliver enhanced returns to shareholders over the medium term.
“The near term outlook remains uncertain with limited visibility. However, we believe our business is well positioned to continue to outperform the market. We remain focused on delivering relevant new capacity in the right markets, improving efficiencies and managing costs to drive profitability. Our first half performance underpins our confidence in meeting full year market expectations.”
DP World profits up 22% in first half
