Flat half year profits for DP World despite throughput growth

Flat half year profits for DP World despite throughput growth
DP World CEO, Sultan Ahmed Bin Sulayem

DP World’s year-on-year attributable profit fell by 0.3% to US$606m in the operator’s half year report, despite solid growth in both container traffic and revenue.

Strong volume across all three DP World regions meant gross throughput increased by 8.2% to almost 34m teu, while revenue rose by 9.6% to US$2.295bn.

DP World CEO, Sultan Ahmed Bin Sulayem, said: “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.”

The most dramatic growth came in the Asia Pacific and Indian Subcontinent region, as revenue grew by 51.4% to US$335m as a result of the consolidation of South Korea’s Pusan facility.

Improving market conditions in the Australia and Americas region saw revenue rise by 9.7% to US$363m.

Market conditions in the EMEA region also performed well as revenue grew by 3.5% to US$1.6bn, with UAE volumes up by 4.3%.

Elsewhere, adjusted EBITDA for the company rose by 4.2% to US$1.2bn as margins remained above 50%.

Consolidated throughput, from terminals where DP World has majority control, shot up by 22.4% to 17.9m teu.

Cash from operating activities also posted strong growth, rising from US$900m to US$1bn.

During the first half of the year the Dubai-based company invested US$595m, while the forecast figure for 2017 remains unchanged at US1.2bn.

Investments are planned for Jebel Ali in the UAE, London Gateway in the UK, Prince Rupert in Canada, and Berbera in Somaliland.

These investments come after DP World subsidiary P&O Maritime acquired Spanish Maritime Service operator Reyser in June.

Going forward DP World expects improving trading conditions and market share gains from the new shipping alliances to continue driving higher levels of throughput.

Bin Sulayem said:  “Overall, the steady financial performance of the first six months leaves us confident in meeting full-year market expectations.”