The following release was published by DP World:
“Our balance sheet remains robust, and we continue to generate high levels of cash flow, which provides us the flexibility to invest in the growth of our existing portfolio and new investment opportunities when they arise. While the near-term trade outlook may be uncertain due to macroeconomic and geopolitical factors, the solid financial performance of the first six months positions us well to deliver a steady set of full-year results. We remain optimistic about the medium to long-term prospects of the industry and DP World’s capacity to consistently generate sustainable returns.”
~Sultan Ahmed Bin Sulayem, Group Chairman and CEO of DP World
DP World Limited has announced resilient financial results for the first six months to 30 June 2023. On a reported basis, revenue grew by 13.9% to $9,037 million and adjusted EBITDA grew by 7.0% to $2,611 million with adjusted EBITDA margin of 28.9%.
Results Highlights
Revenue increased by 13.9% to $9,037 million
Revenue growth of 13.9% is mainly attributable to the full six months consolidation of Imperial Logistics (2022 – 4 months).
Like-for-like growth driven mainly from strong performance of Imperial Logistics in Africa and Drydocks World in UAE.
Adjusted EBITDA increases 7.0% to $2,611 million
Adjusted EBITDA grew 7.0% on higher revenue growth and EBITDA margin for the year stood at 28.9%. Like-for-like adjusted EBITDA margin stood at 30.8%.
Cash generation remains robust, Balance sheet strong
Net cash generated from operating activities stood at $1,951 million 1H 2023 (compared to $1,931 million in 1H 2022).
Leverage (Net debt to adjusted EBITDA) on a pre-IFRS16 basis stands at 2.8x (FY2022: 2.7x). On a post-IFRS16 basis, net leverage stands at 3.2 times compared to 3.0 times in FY2022.
DP World credit rating improves to BBB+ with Stable Outlook
DP World’s credit rating improved by two notches by Fitch to BBB+ with Stable Outlook and one notch by Moody’s to Baa2 with Stable Outlook on improved financial performance and a stronger balance sheet.
DP World is committed to a strong investment grade rating in the medium term.
Selective investment in key growth markets
Capital expenditure of $910 million ($741 million in 1H 2022) was invested across the existing portfolio.
Capex split: $412 million Ports and Terminals, $284 million Logistics and Parks and Economic Zones, $187 million Marine Services and $27 million in Head Office.
Capital expenditure guidance for 2023 is for approximately $2.0 billion to be invested in UAE, Jeddah (Saudi Arabia), London Gateway (United Kingdom), Dakar (Senegal), Callao (Peru) and DPW Logistics (South Africa).
DP World focused on driving revenue synergies and building long-term relationships with cargo owners
Enhanced logistics portfolio offers value-add capabilities in fast-growing markets and verticals.
DP World aims to deliver supply chain solutions to cargo owners by leveraging its best-in-class infrastructure
Group is well-positioned to capitalize on the growing demand for customised solutions in the logistics industry.
Committed to transition to net zero in line with UAE 2050 Initiative
Investment in renewable energy through the I-REC programme has resulted in 47% reduction in DP World UAE carbon emissions.
Committed to investing more than $500 million to reduce CO2 emissions by 700k tonnes in the next 5 years.
Resilient 1H 2023 performance, outlook remains uncertain
Solid 1H 2023 performance but outlook remains uncertain due to geopolitics, inflationary environment, higher interest rates and currency fluctuations.
DP World remains positive on the medium to long-term outlook for global trade and is focused on delivering integrated supply chain solutions to cargo owners to drive sustainable returns.
Source: DP World