DP World Limited announced strong financial results for the year 2021, achieving a revenue growth of 26.3 percent to US$10,778 million and adjusted EBITDA growth of 15.3 percent to US$3,828 million, with adjusted EBITDA margin of 35.5 percent.
The revenue increase from US$2,245 million to US$10,778 million is supported by acquisitions and new concessions including Angola, Unico and Transworld.
Like-for-like revenue rose by 11.7 percent with like-for-like containerised revenue up 14.2 percent driven by volume growth, while containerised revenue growth is higher than volume growth mainly due to higher storage and reefer monitoring revenue.
Like-for-like non containerised revenue grew 9.5 percent with a strong performance from the Feedering business.
Cash from operating activities increased by 27.3 percent to a record US$3,692 million in 2021 (US$2,901 million in 2020), while leverage (net debt to adjusted EBITDA) stood at 3.7 times (Pre-IFRS16) despite higher net debt of US$12.2bn (US$11.0bn 2020). On a post-IFRS16 basis, net leverage stood at 4.2 times compared to 4.3 times at FY2020.
The company recorded capital expenditure of US$1,393 million (US$1,076 million in 2020) invested across the existing portfolio. Meanwhile, capital expenditure guidance for 2022 is up to US$1.4 billion with investments planned into UAE, Jeddah (Saudi Arabia), London Gateway (UK), Berbera (Somaliland), Sokhna (Egypt), Indonesia and Callao (Peru).
DP World Group Chairman and CEO, Sultan Ahmed Bin Sulayem, commented,
"We are delighted to report these strong set of results with adjusted EBITDA growing by US$0.5 billion to a new record of US$3.8 billion. Importantly, growth was broad based across our terminals and logistics assets as we begin to drive synergies across our portfolio. This significant growth once again demonstrates that our strategy to deliver integrated supply chain solutions will drive sustainable long-term returns.
"Furthermore, our recently announced acquisition of Imperial Logistics and syncreon will bring value-add capabilities in high growth verticals and markets, which will allow us to offer a more compelling set of supply chain solutions. By leveraging our best-in-class infrastructure across inland logistics, ports & terminals, economic zones and marine logistics network, DP World aims to lower inefficiencies and provide improved connectivity in fast growing trade lanes such as Asia, Middle East & Africa."
"Importantly, we continue to make positive progress with our capital recycling program and this combined with the strong operational performance, leaves us well positioned to deliver on our 2022 combined (DP World and PFZW) leverage target of less than 4x Net Debt to adjusted EBITDA (Pre IFRS16).
"Overall, we are pleased with the 2021 performance and looking ahead to 2022, we expect our portfolio to continue to deliver growth and, while the year has started encouragingly, we remain mindful that the geopolitical uncertainty, Covid-19 pandemic, continued supply chain disruptions and rising inflation could hinder the global economic recovery."
News Source: Emirates News Agency