Home Page - Gulf in the Media
HomePoliticsEconomy                               Set Gulfinthemedia.com as home page
 Print  Send This Page
Save Listen to this Article
DP World net income tops $ 1 billion   

TradeArabia - 20 March, 2017

Dubai-based global marine terminal operator DP World has announced strong financial results from its global portfolio for the 12 months ending 31 December 2016, which saw the company achieve net income of over $ 1 billion for the first time.

On a reported basis, revenue grew 4.9 per cent and adjusted EBITDA ($ 2.263 billion) increased 17.4 per cent with adjusted EBITDA margin of 54.4 per cent, delivering profit attributable to owners of the company, before separately disclosed items, of $ 1.127 billion, up 27.6 per cent, and EPS of 135.7 US cents, said a statement from the company.

On a like-for-like basis, revenue grew 1.3 per cent, adjusted EBITDA increased by 6.6 per cent with adjusted EBITDA margin of 52.6 per cent, and attributable earnings increased 6.2 per cent, it added.

The company reported a revenue of $ 4.163 billion, a growth of 4.9 per cent supported by full year contribution of Jebel Ali Free Zone (UAE) and Prince Rupert (Canada). Like-for-like revenue increased by 1.3 per cent driven by a 2.3 per cent increase in containerised revenue.

The group reported a volume growth of 0.4 per cent despite challenging markets. Containerised revenue per TEU (twenty-foot equivalent unit) grew 4 per cent and total revenue per TEU by 3 per cent on a like-for-like basis.

The group raised $ 1.2 billion in a new 7-year sukuk transaction at significantly improved terms, refinancing $ 1.1 billion of the existing 2017 sukuk through a tender offer and extending the debt maturity profile.

Furthermore, it raised £650 million 20- and 30-year multi tranche term financing placed with pension funds, insurance companies and financial institutions for London Gateway Port, and Canadian $ 603 million 7-year bank loan for the Canadian business. This further extends the debt maturity profile and reduces the refinancing risk of DP World.

By the end of 2016, gross global capacity was at 85 million TEU, an increase of approximately 15 million TEU since 2012, and the gourp expects over 100 million TEU of gross capacity by 2020, subject to market demand.

"We expect capital expenditure in 2017 to be $ 1.2 billion with investment planned into Jebel Ali (UAE), Prince Rupert (Canada), Berbera (Somaliland), Dakar (Senegal) and London Gateway (UK)," it said.

Sultan Ahmed Bin Sulayem, group chairman and CEO, DP World, said: “We are pleased to announce another set of strong financial results for 2016, as we delivered earnings in excess of $ 1 billion and above 50 per cent EBITDA margins for the full year for the first time.”

“Encouragingly, our volumes have continued to grow ahead of the market with gross volumes growing 3.2 per cent vs Drewry full year market estimate of 1.3 per cent. This is pleasing given the significant challenges parts of our portfolio have faced, and once again demonstrates the resilient nature of our diversified portfolio,” he said.

“Disciplined investment throughout the economic cycle has been one of the keys to delivering consistent growth and in 2016, we invested $ 1,298 million across our portfolio in markets with strong demand and supply dynamics,” he stated.

Bin Sulayem added: “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. 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.”

“The board of DP World recommends increasing the dividend by 26.7 per cent to $ 315.4 million, or 38.0 US cents per share, reflecting the strong earnings growth in the year. The board is confident of the company’s ability to continue to generate cash and support our future growth whilst maintaining a consistent dividend payout,” he stated.

“Our significant cash generation and investment partnerships leave us with a strong balance sheet and flexibility to capitalise on the significant growth opportunities in the industry. Overall, we continue to believe that a portfolio which has a 70 per cent exposure to origin and destination cargo and 75 per cent exposure to faster growing markets will enable us to deliver enhanced shareholder value over the long term,” he concluded.
  Other Top News
Saudi exports to US to fall by 300,000 bpd in March
Saudi Arabia's crude exports to the United States in March will fall by around 300,000 barrels per day from February, in line with Opec's agreement to reduce supply, a Saudi energy ministry official said...
Dubai Property Show opens in Shanghai
Taking Dubai's crème-de-la-crème properties to Chinese buyers’ doorstep, Dubai Property Show opened to public on Friday at the prestigious Shanghai World Expo Exhibition & Convention Center...
MOL to advance Block 66 exploration
Hungarian energy firm MOL Group says it plans to press ahead with its exploration efforts targeting its sole concession in the Sultanate, Block 66, located in the mid-west of the country...
Alara signs offtake agreement for Oman copper concentrate
Alara Resources Limited has announced that its local subsidiary, Alara Oman Operations Pty Ltd, has signed an off-take agreement for the supply of copper concentrate from the Al Hadeetha Project, Washihi Reserve...
China's Feb. Iranian crude import up 18%
China imported in February 657,900 barrels of crude oil per day from Iran, an increase of 18 percent year on year, according to data from the Chinese General Administration of Customs...
Sat Mar 25, 2017| 26-جماد ثاني-1438هـ
Syria expands anti-Daesh operations
Riyadh celebrates first Saudi Women's Day
UAE summons Iran's diplomat
Trump turns up the heat on Iran, but no clear game plan yet
Qatar tops world in BMI index for investment attractiveness
Qaeda kills Yemen police, targeted in US raid
Iran targets $8.6bn of refinery deals with Asia firms
UN chief: Syria dialogue must focus on transition for success
US President Trump strongly supports Iraq - envoy
DGCX traded 1.37m contracts valued at $33b in January
Iran rejects 'baseless' warning from US on missile test
GCC consumers spend $9.3 billion on beauty, personal care products
HM King hails parliament's role
Saudi sentenced 7 years in prison for entering Syria, joining Al-Nusra
AD CP, Emir of Qatar discuss ties
NBK Report on oil markets
GCC Banking Sector Quarterly - 2Q16
    GCC Press Agencies
Day's main stories from the GCC Press Agencies
    GRC Analysis
The Benefits of NATO-GCC Strategic Ties
The GCC and the EU's New Global Strategy
    GRC Commentary
Climate COP 22 in Marrakech Important for the Region
Earth Day 2016: The Promised Day
An Evolving Saudi-US Relationship
    GRC Press Release
Gulf Research Center press releases to the media
    GRC Publications
The GCC and the Global Oil Market in 2016
GCC and Regional Issues
GCC Economies: Vision Plans and Outlook
    GRC Newsletters/Bulletins

Enter your email to get the Newsletter
GRC Publication
Privacy Policy | Contact Us | Terms & Conditions | About Us |
Weather | Qibla Directions | Hijri Date Conversion Tool
Full Page :total time:0  |   53-- 53 Middle Page :0  --   | Right : 53 - 53-nonexist-en--sess-enreq-en-coming