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DP World 1H revenues grow 9.6% to $2.3 b

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Dubai-based DP World, a global shipping terminal operator, last week announced a revenue of $2.295 billion for the first half of 2017, a growth of 9.6% on reported and 3% on like-for-like basis compared to H1 2016.

 The revenue growth was supported by the strong volume growth across all three DP World regions. There was a 4.2% increase in total containerised revenue, the group said.

 Profit for the period attributable to owners of the company was $606 million, a 15.8% increase before separately disclosed items on a like-for-like basis, but on a reported basis earnings remained flat (-0.3%).  

Adjusted EBITDA hit $1.225 billion (+4.2%) and adjusted EBITDA margin 53.4%. Like-for-like adjusted EBITDA increased at a stronger pace of 7% resulting in a margin of 54.8%. 

Cash from operating activities amounted to $1.009 billion, up from $905 million in H1, 2016. Leverage (net debt to annualised adjusted EBITDA) decreased to 2.6 times (from 2.8 times at December 31, 2016). 

The gross throughput was 33.997 million TEUs, up 8.2% compared with 31.414 TEUs in H1 2016. 

 DP World continued investment in high quality long-term assets with strong supply/demand dynamics. It made a capital expenditure of $595 million across the portfolio during the first half of the year. Capital expenditure guidance for 2017 remains unchanged at $1.2 billion with investments planned into Jebel Ali (UAE), London Gateway (UK), Prince Rupert (Canada) and Berbera (Somaliland), the group said.

 Improved trading environment in the first half of 2017 and market share gains from the new shipping alliances are driving volumes in the second quarter of the year, it said.  DP World Group chairman and CEO Sultan Ahmed Bin Sulayem commented: “DP World is pleased to announce a solid set of first half results with attributable earnings of $606 million, and like-for-like earnings growth of 15.8%. Adjusted EBITDA reached $1,225 million as margins were maintained at above 50%. Encouragingly, after a challenging period, we have seen a pick-up in global trade particularly in the second quarter of the year, and that combined with the ramp up in our recent investments in Yarimca (Turkey), London Gateway (UK), Rotterdam (Netherlands) and JNP Mumbai (India), has delivered ahead-of-market volume growth. 

“In the first half of 2017, we have invested $595 million of capex in key growth markets, and announced over $170 million of acquisitions in our maritime business, which offers significant growth opportunities. These investments leave us well placed to deliver on our strategy to strengthen our port related services and capitalise on the significant medium to long-term growth potential of this industry.     

“Our balance sheet remains strong and we continue to generate high levels of cashflow, which gives us the ability to invest in the future growth of our current portfolio, and the flexibility to make new investments should the right opportunities arise as well as delivering enhanced returns to shareholders over the medium term.

 “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,” he added. 

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