DP World Announces Solid Financial Results Like-For-Like Earnings Grow 15.8% In First Half Of 2017

Global trade enabler DP World today announces solid financial results for the six months to 30 June 2017. On a reported basis, revenue grew 9.6% and adjusted EBITDA increased by 4.2%. Adjusted EBITDA margin was 53.4%, delivering profit attributable to owners of the Company, before separately disclosed items , of $606 million and EPS of 73.0 US cents. On a like-for-like basis, revenue grew 3.0% and adjusted EBITDA increased by 7.0%, adjusted EBITDA margin of 54.8%, attributable earnings up by 15.8%, reflecting the improved trading environment.

Results Highlights

 Revenue of $2,295 million (Revenue growth of 9.6% on reported and 3.0% on like-for-like basis)

 Revenue growth of 9.6% supported by the strong volume growth across all three DP World regions.

Like-for-like revenue increased by 3.0% driven by a 4.2% increase in total containerized revenue.

Adjusted EBITDA of $1,225 million and adjusted EBITDA margin of 53.4% (Like-for-like adjusted EBITDA margin at 54.8%)

 Adjusted EBITDA grew 4.2% and EBITDA margin for the half year reached 53.4%. Like-for-like adjusted EBITDA increased at a stronger pace of 7.0% resulting in a margin of 54.8%.

 Profit for the period attributable to owners of the Company of $606 million

 Strong adjusted EBITDA growth resulted in a 15.8% increase in profit attributable to owners of the Company before separately disclosed items on a like-for-like basis but on a reported basis earnings remained flat (-0.3%).

Strong cash generation and robust balance sheet and credit rating upgrade

 Cash from operating activities amounted to $1,009 million up from $905 million in 1H2016.

 Leverage (Net debt to annualised adjusted EBITDA) decreased to 2.6 times (from 2.8 times at 31 December 2016).

DP World was recently upgraded by Fitch Ratings to BBB+ from BBB with stable outlook, after both Fitch and Moody’s upgraded the rating by one notch last year.

 Continued investment in high quality long-term assets with strong supply/demand dynamics

 Capital expenditure of $595 million invested across the portfolio during the first half of the year.

Capital expenditure guidance for 2017 remains unchanged at $1.2 billion with investments planned into Jebel Ali (UAE), London Gateway (UK), Prince Rupert (Canada) and Berbera (Somaliland).

 DP World subsidiary, P&O Maritime, acquired Spanish Maritime Service operator Reyser to further develop the Group’s maritime offering as well as adding complementary or related services to further diversify and strengthen our business.

Rebound in global trade and market share gains

 Improved trading environment in first half of 2017 and market share gains from the new shipping alliances driving volumes in the second quarter of the year.

Robust performance across all three regions.

Well placed to meet full year 2017 market expectations.

DP World Group Chairman and CEO, Sultan Ahmed Bin Sulayem, commented:

“DP World is pleased to announce a solid set of first half results with attributable earnings of $606 million, and like-for-like earnings growth of 15.8%. Adjusted EBITDA reached $1,225 million as margins were maintained at above 50%. Encouragingly, after a challenging period, we have seen a pick-up in global trade particularly in the second quarter of the year, and that combined with the ramp up in our recent investments in Yarimca (Turkey), London Gateway (UK), Rotterdam (Netherlands) and JNP Mumbai (India), has delivered ahead-of-market volume growth.

“In the first half of 2017, we have invested $595 million of capex in key growth markets, and announced over $170 million of acquisitions in our maritime business, which offers significant growth opportunities. These investments leave us well placed to deliver on our strategy to strengthen our port related services and capitalize on the significant medium to long-term growth potential of this industry.    “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 as well as delivering enhanced returns to shareholders over the medium term.

“Looking ahead to the second half of the year, we expect higher levels of throughput to be maintained. Overall, the steady financial performance of the first six months leaves us confident in meeting full-year market expectations.”

Forward-Looking Statements

This document contains certain "forward-looking" statements reflecting, among other things, current views on our markets, activities and prospects. By their nature, forward-looking statements involve risk and uncertainty because they relate to future events and circumstances that may or may not occur and which may be beyond DP World’s ability to control or predict (such as changing political, economic or market circumstances). Actual outcomes and results may differ materially from any outcomes or results expressed or implied by such forward-looking statements. Any forward-looking statements made by or on behalf of DP World speak only as of the date they are made and no representation or warranty is given in relation to them, including as to their completeness or accuracy or the basis on which they were prepared. Except to the extent required by law, DP World does not undertake to update or revise forward-looking statements to reflect any changes in DP World’s expectations with regard thereto or any changes in information, events, conditions or circumstances on which any such statement is based.

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