DP World Posts Record Half Yearly Profits for 2022, Moderates Outlook
DP World Limited has announced strong financial results for the six months to 30 June 2022 with total revenue growing 60.4% year-on-year and 20.1% on a like-for-like basis.
Revenue was supported by acquisitions, strong performance of feedering services and growth in high margin cargo. Container revenue per TEU increasing by 9.2% driven by higher demand for storage.
Adjusted EBITDA increased by $628 million, and EBITDA margin for the half-year stood at 30.8%. Like-for-like adjusted EBITDA margin was 38.2%.
Profit attributable to owners of the Company before separately disclosed items increased to $721 million up 51.8% on reported basis and 39.2% on a like-for-like basis.
Cash from operating activities increased by 29.6% to $1,931 million in H1 2022 compared to $1,490 million in H1 2021.
Combined Leverage including PFZW guarantee (Net debt to annualised adjusted EBITDA) decreased to 3.8 times (pre-IFRS16) from 5.9 times at FY2021. On a post-IFRS16 basis, net leverage stands at 4.1 times compared to 6.0 times at FY2021.
DP World's credit rating improved to BBB- with Positive Outlook by Fitch and remains at Baa3 with Stable Outlook by Moody’s.
The company broadened partnerships and monetisations to raise approximately $9 billion to significantly strengthen balance sheet and provide long term flexibility.
Capital expenditure was $741 million ($687 million in 2021) invested across the existing portfolio during the first half of the year.
Capital expenditure guidance for 2022 is for up to $1.4 billion with investments planned into UAE, Jeddah (Saudi Arabia), London Gateway (UK), Sokhna (Egypt), Senegal and Callao (Peru).
DP World's new logistics assets bring value-add capabilities in fast growing markets and verticals. Near-term focus continues on business transformation to drive revenue synergies.
The company delivered value add solutions to cargo owners by leveraging our best-in-class infrastructure across logistics, ports & terminals, economic zones, digital and marine services.
H1 2022 performance has been ahead of expectations but the company expects growth rate to moderate in H2 2022 on more challenging economic environment.
Outlook is uncertain due to geopolitics, higher inflationary environment, currency fluctuations and continued supply chain disruptions.
However, DP World remains positive on medium to long-term outlook for global trade and is focused on delivering integrated supply chain solutions to cargo owners to drive growth and returns.