Global marine terminal operator DP World has announced strong financial results from its global portfolio of marine terminals for H1, 2015, ending at 30 June 2015, delivering profit attributable to owners of the company before separately disclosed items of US$405 million, up 21.9% compared to H1, 2014.
The company’s revenue reached $1.9 million, compared to $1,659 million recorded in H1, 2014. The growth in the company’s revenue was supported by the acquisition of Economic Zone World (EZW), which helped to boost profits attributable to owners of the company before separately disclosed items by 21.9%.
Over $3 billion has been invested in the acquisition of EZW and Fairview Terminals, as well as $597million invested across its existing portfolio.
Containerised revenue per TEU grew 2.1% on a like-for-like basis and non-containerised revenues grew by 14.7% on a like-for-like basis.
DP World’s net cash from operating activities increased to $756 million from $551 million in H1, 2014.
The company predicts that continued investment in quality long-term assets will drive long-term profitable growth.
Jebel Ali (UAE) will add a further two million TEU capacity and Yarimca (Turkey) to add 0.8 million TEU capacity in second half of 2015.
By the end of 2015, DP World expects to have approximately 85 million TEU of capacity globally and over 100 million by 2020, subject to market demand.
Sultan Ahmed Bin Sulayem, Chairman of DP World, said: “This financial performance has been achieved despite uncertain market conditions, which once again demonstrates the well diversified and resilient nature of our portfolio. In 2015, we have invested over $3.5billion in acquisitions and expansionary capex, and this investment leaves us well placed to capitalise on the significant medium to long-term growth potential of this industry.
“We remain on course to deliver over 100 million TEU of capacity by 2020, while maintaining the existing shape of our portfolio that has a 70% exposure to origin and destination cargo and 75% exposure to faster growing markets. This positioning will enable us to deliver both earnings growth and shareholder value over the long term.”
Mohammed Sharaf, CEO of DP World, said: “Encouragingly, like-for-like revenue growth continues to outpace throughput growth which demonstrates the pricing power within the portfolio.
“Our capex programme remains on track and we have added over 3 million TEU of new capacity in the first half of 2015 with our projects in Rotterdam (Netherlands) and Nhava Sheva (India) now operational. Yarimca (Turkey) and the second phase of Terminal 3 Jebel Ali (UAE) are on track for the second half of 2015. We believe this additional capacity will contribute to growth in the coming years and deliver enhanced returns to shareholders over the medium term.
“The near term outlook remains uncertain with limited visibility. However, we believe our business is well positioned to continue to outperform the market. Our first half performance underpins our confidence in meeting full year market expectations.”