DP World reports $1.2 billion profit for 2018

DUBAI:

|By Arabian Post Staff| DP World has announced strong financial results for the year ended 31 December 2018. On a reported basis, revenue grew 19.8% and adjusted EBITDA increased 13.7% with adjusted EBITDA margin of 49.7%, delivering profit of $1,270 million, up 5.1%, and EPS of 153.0 US cents.

On a like-for-like basis, revenue grew 4.2%, adjusted EBITDA increased by 6.6% with adjusted EBITDA margin of 54.1%, and earnings attributable to owners of the Company increased 7.6%.

The highlights of the results include revenue growth of 19.8% driven by acquisition of Drydocks World, Dubai Maritime City (DMC), Cosmos Agencia Maritima, Continental Warehousing Corporation (CWC) and Santos consolidation. Like-for-like revenue increased by 4.2% driven by a 6.3% increase in total containerized revenue.

The company reported adjusted EBITDA of $2,808 million and adjusted EBITDA margin of 49.7%. Adjusted EBITDA grew 13.7% and achieved an EBITDA margin for the full year of 49.7%. Like-for-like adjusted EBITDA margin was at 54.1%.

The strong adjusted EBITDA growth resulted in a 5.1% increase in profit and 7.6% growth on a like-for-like basis at constant currency. Cash from operating activities was $2,161 million. Free cash flow (post cash tax maintenance capital expenditure and pre-dividends) amounted to $1,811 million.

The total dividend per share increased by 4.9% to 43 US cents, reflecting  earnings growth in 2018. The company claimed disciplined investment in high quality long-term assets is driving long-term profitable growth, and creating long-term value for shareholders.  Capital expenditure of $908 million was invested across the portfolio during the year, below the Group’s guidance of approximately $1,400 million in 2018.

The acquisitions of Drydocks, DMC, CWC, Cosmos Agencia and Unifeeder are performing in line with expectations and we have seen increased contribution to our revenue line. The company expects capital expenditure in 2019 to be up to $1.4 billion with investment planned mainly into UAE, Posorja (Ecuador), Berbera (Somaliland), Dakar (Senegal) and Sokhna (Egypt).

DP World continued to invest in solution providers and acquired the integrated multimodal logistics player Continental Warehousing Corporation (CWC) in India, Cosmos Agencia Marítima in Peru, and the Unifeeder Group in Denmark, which operates the largest container common user feeder and growing shortsea network in Europe. Also announced is the acquisition of the pan-European logistics business, P&O Ferries.

Aside from investments in solution providers, the company won a 30-year concession for the management and development of a greenfield port project at Banana in the Democratic Republic of the Congo. It also announced the acquisition of two ports in Chile8 and consolidation of its position in Australia8, where there is an opportunity to expand beyond the ports into logistics.

 

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