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 EBITDA5 grew by 7.0% to $2,611 million with adjusted EBITDA margin6 of 28.9%.
Results before separately disclosed items[1] unless otherwise stated | 1H 2023 | 1H 2022 | As reported % change | Like-for-like % change[2] |
Gross throughput[3] (TEU ‘000) | 39,858 | 39,488 | +0.9% | +3.1% |
Consolidated throughput[4] (TEU ‘000) | 23,005 | 22,918 | +0.4% | -1.5% |
Revenue | 9,037 | 7,932 | +13.9% | +7.1% |
Share of profit from equity-accounted investees | 82 | 84 | -1.9% | +28.6% |
Adjusted EBITDA[5] | 2,611 | 2,441 | +7.0% | +5.3% |
Adjusted EBITDA margin[6] | 28.9% | 30.8% | - | 30.8% |
EBIT[7] | 1 ,603 | 1,481 | +8.2% | +6.1% |
Profit for the period | 885 | 884 | +0.1% | +1.4% |
Profit for the period attributable to owners of the Company | 651 | 721 | -9.7% | +33.3% |
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
- 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.
Sultan Ahmed Bin Sulayem, DP World Group Chairman and CEO, expressed satisfaction with the resilient results of the first half of 2023. Despite challenges in the container market and freight rates, the company's focus on high-margin cargo, tailored supply chain solutions, and cost optimization contributed to a 7.0% increase in adjusted EBITDA to over $2.6 billion. The logistics vertical's strength in attracting cargo owners to the platform, coupled with investments in growth sectors and commitment to achieving net-zero carbon emissions, positions DP World for sustainable long-term growth and returns.
News Source: Dubai Media Office
