DP World announced strong financial results for the twelve months ending December 31, 2017. On a reported basis, revenue grew 13.2 per cent and adjusted EBITDA increased 9.1 per cent, with adjusted EBITDA margin of 52.4 per cent, delivering profit attributable to owners of the company, before separately disclosed items of $1,209 million, up 7.3 per cent, and EPS of 145.6 US cents. On a like-for-like basis, revenue grew 6 per cent, adjusted EBITDA increased by 8 per cent, with adjusted EBITDA margin of 53.2 per cent, and earnings attributable to owners of the company increased 15.1 per cent.
Key highlights
- Revenue of $4,715 million
- Revenue growth of 13.2 per cent supported by the strong volume growth across all three DP World regions.
- Like-for-like revenue increased by 6 per cent driven by a 6.9 per cent increase in total containerised revenue.
- Like-for-like containerised revenue per TEU grew 0.7 per cent and total revenue per TEU remained broadly flat (-0.2 per cent).
- Continued investment in high quality long-term assets to drive long-term profitable growth
- Capital expenditure of $1,090 million invested across the portfolio during the year, below the Group’s guidance of approximately $1,200 million in 2017.
- In 2017, gross global capacity was at 88 million TEUs and is expected to grow to over 100 million TEUs of gross capacity by 2020, subject to market demand.
- Consolidated capacity was at 50 million TEUs up from 42 million TEUs in 2016, including the consolidation of Pusan (South Korea).
- It expects capital expenditure in 2018 to be up to $1.4 billion with investment planned mainly into the UAE, Posorja (Ecuador), Berbera (Somaliland), Pusan (South Korea), Maputo (Mozambique) and Sokhna (Egypt).
Investment partnership with NIIF and consolidation of DP World Santos
DP World has partnered with the government of India-sponsored National Investment and Infrastructure Fund (NIIF), to create an investment platform of up to $3 billion of equity to acquire assets and develop projects in the ports, transportation and logistics sector in India. The partnership will also look at opportunities beyond sea ports, such as river ports and transportation, freight corridors, special economic zones, inland container terminals, and logistics infrastructure, including cold storage.
DP World acquired an additional 66.67 per cent stake in Embraport in the Port of Santos (Brazil) from Odebrecht Transport (OTP) to take its shareholding to 100 per cent. The terminal has an annual capacity of 1.2 million TEUs and has been rebranded to DP World Santos.
Rebound in global trade and market share gains:
- Benefitting from the improved trading environment and market share gains, its global portfolio delivered ahead-of-market volume growth in 2017.
- Strong performance across all three regions.
- Looking ahead into 2018, it expects to continue to grow ahead of the market and see increased contributions from its new developments.
