DP World Limited has announced strong financial results for the six months to June 30, 2021 with EBITDA growing 18.2% year-on-year.   

Results before separately disclosed items unless otherwise stated1H20211H2020As reported % changeLike-for-like % change[2]
Gross throughput[3](TEU ‘000)38,59833,897+13.9%+13.3%
Consolidated throughput [4](TEU ‘000)22,56619,970+13.0%+12.0%
Revenue4,9454,076+21.3%+9.0%
Share of profit from equity-accounted investees7655+38.5%+29.8%
Adjusted EBITDA[5]1,8131,534+18.2%+11.9%
Adjusted EBITDA margin[6]36.7%37.6%38.5%
EBIT1,117873+27.9%+20.9%
Profit for the period585333+75.4%+54.7%
Profit for the period attributable to owners of the Company475313+51.9%+39.4%

Results Highlights

  • Revenue growth of 21.3% on reported basis)
  • Adjusted EBITDA increased 18.2%, and EBITDA margin for the half-year stood at 36.7%. Like-for-like adjusted EBITDA margin of 38.5%.
  • Cash from operating activities remains strong at US$1,490 million in 1H2021 compared to US$1,124 million in 1H2020.
  • Leverage (Net debt to annualised adjusted EBITDA) decreased to 3.5 times (Pre-IFRS16) from 3.7 times at FY2020.
  • On a post-IFRS16 basis, net leverage stands at 4.0 times compared to 4.3 times at FY2020.
  • DP World credit rating remains investment grade at BBB- with Stable Outlook by Fitch and Baa3 with Stable Outlook by Moody’s.
  • Capital expenditure guidance for 2021 is for approximately US$1.2 billion with investments planned into UAE, Canada, Jeddah (Saudi Arabia), Berbera (Somaliland), Sokhna (Egypt), Luanda (Angola), P&O Ferries, London Gateway (UK) and Callao (Peru).
  • Portfolio has delivered strong performance in 1H2021 on higher consumer spend and rebound in global trade.

DP World Group Chairman and CEO Sultan Ahmed Bin Sulayem said, “We are delighted with the strong set of first half results with adjusted EBITDA growing 18.2% and attributable earnings rising 51.9%. This significant growth once again demonstrates that we are in the right locations and a focus on origin and destination cargo will continue to deliver the right balance between growth and resilience. “

“In recent years, we have seen cargo owners respond positively to our integrated end-to-end product offering and we aim to continue with our drive to enable trade. Our recently announced acquisitions of Imperial Logistics and syncreon bring value-add capabilities in high growth verticals and markets, which will allow us to offer a more compelling set of supply chain solutions. By leveraging our best-in-class infrastructure across inland logistics, ports & terminals, economic zones and marine logistics network, DP World aims to lower inefficiencies and provide improved connectivity in fast growing trade lanes such as Asia, Middle East & Africa.”

“Importantly, we continue to make positive progress with our capital recycling program and this combined with the strong operational performance, leaves us well positioned to deliver on our 2022 combined (DP World and PFZW) leverage target of less than 4x Net Debt to adjusted EBITDA (Pre IFRS16).”

“Overall, the near-term outlook remains positive, and while we are mindful that the COVID-19 pandemic and geopolitical uncertainty could once-again disrupt the global economic recovery, we remain positive on the medium to long-term fundamentals of the industry and DP Worlds ability to continue to deliver sustainable returns.”

[1] Before separately disclosed items (BSDI) primarily excludes non-recurring items. DP World reported separately disclosed items of a $9.2 million loss for the period.

[2] Like-for-like at constant currency is without the new additions at KRIL (India), TIS (Ukraine), Unico (South Korea), Fraser Surrey (Canada), Traders Market  Logistics & Digital Solutions (UAE) and Luanda (Angola)

[3] Gross throughput is throughput from all consolidated terminals plus equity-accounted investees.

[4] Consolidated throughput is throughput from all terminals where the Group has control as per IFRS.

[5] Adjusted EBITDA is Earnings before Interest, Tax, Depreciation & Amortisation including share of profit from equity-accounted investees before separately disclosed items.

[6] The adjusted EBITDA margin is calculated by dividing adjusted EBITDA by revenue, including our share of profit from equity-accounted investees.

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