DP World's revenue has reached US$2.295 billion for the first half of 2017, growing 9.6% against the first half of 2016 due to strong volume growth across all three DP World regions, resulting in a 1.4% increase in profit for the period of US$682 million.
An improved trading environment in first half of 2017 and market share gains from the new shipping alliances drove volumes in the second quarter of the year and increased gross throughput by 8.2% to almost 34 million TEU.
Australia and Americas saw the largest change in consolidated throughput with a 15.2% increase leading to 1.68 million TEU.
An improvement in market conditions improved volumes, with the Americas contributing the most growth, resulting in revenues growing by 9.7% in the Australia and Americas region to $363 million.
Asia Pacific and Indian Subcontinent saw the highest revenue growth of 51.4% to $335 million.
This was due to the consolidation of Pusan Newport Company Limited (PNC) in South Korea.
On a like-for-like basis, revenue grew 6.5% ahead of volume growth due to strong containerized other revenue growth of 8.2% and non-containerized revenue growth of 6.9%.
Developments with Pusan also pushed volume growth in the region to increase to 97.5%, but DP World reported that a better reflection of the performance was like-for-like growth of 2.9%.
DP World reported that its “well placed” to meet full year 2017 market expectations.
Sultan Ahmed Bin Sulayem, DP World Group Chairman and CEO, 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 ofacquisitions 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.”
