Strategic Acquisitions Spur DP World’s Revenue Growth (12 MAR 2020)

Dubai-based port operator DP World posted 36.1 percent revenue growth and a 4.6 percent higher profit for the full year of 2019 compared with the previous year.

The profit attributable to owners reached USD 1.32 billion and adjusted EBITDA grew 17.7% reaching USD 3.3 billion. The EBITDA margin for the full year was 43%.

The port operator said that the revenue growth was driven by acquisitions of P&O Ferries, Topaz Energy & Marine and the two terminals in Chile-Puerto Central and Puerto Lirquen, as well as the full-year impact from Continental Warehousing Corporation, Cosmos Agencia Maritima and Unifeeder, and the consolidation of Australia region.

In 2019, gross global capacity was at 91.8 million TEU, while consolidated capacity was at 54.2 million TEU, DP World said.

This performance has been delivered in an uncertain trade environment, once again highlighting the resilience of our portfolio,” DP World Group Chairman and CEO, Sultan Ahmed Bin Sulayem, commented.

“We have continued to make progress on our strategy to deliver integrated supply chain solutions to cargo owners and have focused our efforts on building end-to-end capabilities for several verticals including the Automotive, Oil & Gas and FMCG industries. We are pleased to state that cargo owners have responded positively, and we are now delivering efficient solutions to our customers, which bodes well for the future.”

Looking ahead into 2020, the company said it would focus on integrating its recent acquisitions and managing costs to protect profitability.

DP World set a capital expenditure guidance for 2020 of up to USD 1.4 billion with investments planned in UAE, Prince Rupert (Canada), London Gateway (United Kingdom), Jeddah (Saudi Arabia), Callao (Peru), Sokhna (Egypt) and Berbera (Somaliland).

The port operator added that Posorja, the only deep-water port in Ecuador with the capacity of 750k TEU opened on time and on budget.

In addition, at the end of December 2019, DP World secured a renewal of the 30-year concession at Jeddah Islamic Port, the largest port in the Kingdom of Saudi Arabia.

Under the agreement, DP World plans to invest up to USD 500 million in infrastructural capacity and modernization of the port.

“The near-term outlook remains a cause for concern with global trade disputes, Covid-19 outbreak and regional geo-politics, causing disruption to trade. However, DP World is well-positioned to respond in the short term by focusing on disciplined investment and managing the cost base to protect profitability. Overall, we remain positive on the medium to long term outlook of the industry,” he added.

  

Source: http://worldmaritimenews.com