Wednesday , 29 March 2017
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DP World reports growth in 2016 profit
The company's revenue was up 4.9% on a reported basis

DP World reports growth in 2016 profit

DP World has reported a 30% rise in profit to US$1.26bn last year thanks to the acquisition of the Jebel Ali Free Zone in the United Arab Emirates (UAE).

On a like-for-like basis, which does not include the addition of new capacity at Jebel Ali Free Zone, Yarimca in Turkey, Stuttgart in Germany, Antwerp Inland in Belgium and Prince Rupert in Canada, profit for 2016 was up by 9% year-on-year.

The company reported a 4.9% growth in revenue to US$4.2bn boosted by full year contribution of the free zone and Prince Rupert.

On a like-for-like basis, the group’s revenue increased by 1.3% thanks to a 2.3% rise in containerised revenue, which was up by 3.8% on a reported basis.

Containerised revenue per teu went up by 4.0% year-on-year in 2016 on a like-for-like basis, with total revenue per teu growing by 3.0%.

Total gross throughput was up 3.2% on a reported basis to 64m teu, a 2.2% increase on a like-for-like basis.

However, consolidated throughput, which includes volumes from all terminals where the group has control as per IFRS, went up by only 0.4% to 29m teu on a reported basis and was down 1.6% on a like-for-like basis.

In the Middle East, Europe and Africa segment, the company’s revenue was up 5.5% on a reported basis, supported by the acquisition of Jebel Ali Free Zone, and 1.9% on a like-for-like basis to US$3bn.

In the Asia Pacific and Indian Subcontinent region, revenue rose by 4.6% to US$433m on a reported basis and 8.3% on a like-for-like basis.

This was stronger than the 1.8% volume growth due to containerised revenue per teu going up by 9.6% on a like-for-like basis.

In the Australia and Americas region, revenue was up 2.6% to US$659m on a reported basis, while it was down 6.1% on a like-for-like basis.

DP World Group’s chairman and CEO Ahmed Bin Sulayem said: “Encouragingly, our volumes have continued to grow ahead of the market with gross volumes growing 3.2% vs. Drewry full year market estimate of 1.3%. Disciplined investment throughout the economic cycle has been one of the keys to delivering consistent growth and in 2016, we invested US$1,298m across our portfolio in markets with strong demand and supply dynamics.”

“While 2017 is expected to be another challenging year for global trade, we have made an encouraging start to the year and we expect to continue to deliver ahead-of-market volume growth,” he added.

“Our aim is to continue our disciplined approach to capital allocation in markets with strong growth potential while adding complementary or related services to further diversify and strengthen our business.”