UAE: DP World Announces 2010 Results

DP World has delivered a positive and encouraging financial performance from its global portfolio of marine terminals, which reflect a stronger second half of the year as volume and revenue growth continued to improve on the first half of the year. This, coupled with continuing of cost management and improved terminal efficiencies, resulted in a return to EBITDA margins above 40% and profit before tax in excess of $500 million.

Summary:

– Consolidated throughput up 9% to 27.8 million TEU (25.6 million),

– Revenue up 9% to $3,078 million ($2,821 million),

– Adjusted EBITDA up 16% to $1,240 million ($1,072 million),

– Adjusted EBITDA margins increase to 40.3% (38.0%),

– Profit for the year up 35% to $450 million ($333 million),

– Gross cash generation from operating activities of $1,108 million ($992 million),

– Earnings per share of 2.26 USD cent (2.01 USD cent) and

– Dividend per share increased 5% to 0.86 of a USD cent (0.82 of a USD cent).

As highlighted when we published our full year throughput announcement in January, the second half of 2010 saw improved trading over the first half. Full year revenue of $3,078 million and EBITDA of $1,240 million were both well ahead of 2009 whilst our EBITDA margins returned to above 40%.

Whilst the return of container volumes across the industry has been an important driver, the actions taken at our terminals to increase revenue have contributed to us delivering container revenue ahead of both 2009 and 2008. In addition, non-container revenue has returned to growth with a particularly strong second half performance.

We have continued our focus on cash generation and cost management as well as driving efficiencies in our terminals. Success in this regard has resulted in 2010 EBITDA margins ahead of expectations at 40.3% and second half margins back at 2008 levels with increased cash generation to over $1.1 billion.

This strong performance helps maintain flexibility in our balance sheet allowing us to continue to invest in our global portfolio, including in two new terminals in Callao (Peru), and Vallarpadam (India) opened in 2010 and early 2011 respectively.

DP World Chairman Sultan Ahmed Bin Sulayem said: “2010 saw a return to volume growth across almost all our terminals, albeit with different growth rates across regions. We saw both rapid recovery in global trade in those markets most affected by the decline in container volumes in 2009, and a return to more modest growth in those markets which showed resilience during 2009. Almost all of our container terminals around the world are back at or ahead of volumes last seen in 2008 which was a peak year for the global container terminal industry.

“The group has continued to invest in its portfolio during the last two years of global crisis and is seeing the benefit of this investment in these results.”

Chief Executive Officer Mohammed Sharaf commented:  “Our 2010 results, with profit before tax in excess of $500 million, reflect a return of container volume growth and greater revenue generation, together with the benefits derived from our cost cutting measures and improved terminal efficiencies implemented since the downturn.

“Our container operations have continued to generate excellent performance, with container revenues ahead of levels last seen in 2008. Despite the slower growth from non-container revenues, cost controls and improved terminal efficiencies have driven a 16% growth in EBITDA to $1,240 million and EBITDA margins back above 40%.

“In the first two months of 2011 we have seen 12% volume growth across our consolidated portfolio with further margin improvement from the full year 2010. It is particularly pleasing to see the UAE region continuing the strong performance seen at the end of 2010 with volume and revenue growth in the first two months of 2011 well ahead of last year.

“Despite continuing economic fragility and political turbulence in some parts of the world, given the geographic spread of our portfolio, we remain confident that we will make further progress in 2011.

“Our focus remains on delivering profitable growth, improving EBITDA margins and driving cash generation in both the short term and long term through a combination of incremental revenue generation, improving efficiencies and cost management. We remain confident about the long term outlook for the container terminal industry and our strong competitive position within it.”

About DP World

DP World is one of the largest marine terminal operators in the world, with 49 terminals and 9 new developments and major expansions across 31 countries Its dedicated, experienced . and professional team of nearly 30,000 people serves customers in some of the most dynamic economies in the world.

DP World aims to enhance customers’ supply chain efficiency by effectively managing container, bulk and other terminal cargo. The company constantly invests in terminal infrastructure, facilities and people, working closely with customers and business partners to provide quality services today and tomorrow, when and where customers need them.

In taking this customer-centric approach, DP World is building on the established relationships and superior level of service demonstrated at its flagship Jebel Ali facility in Dubai, which has been voted “Best Seaport in the Middle East” for 16 consecutive years.

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Source: dpworld, March 23, 2011