DP World: strong H1 results

DP World has announced its results for H1 2019 with reported adjusted EBITDA and attributable earnings growth of 21.9% and 26.8% respectively.

DP World group chairman and chief executive Sultan Ahmed bin Sulayem said “Our half-year financial results have been in line with our expectations.”

The company has continued to invest in ports and terminals including two new assets in Chile, Fraser Surrey Docks8 (Canada) and consolidating assets in Australia. DP WorldCapital expenditure guidance for 2019 remains unchanged at up to US$1.4Bn with investments planned into UAE, Posorja (Ecuador), Berbera (Somaliland), Sokhna (Egypt) and London Gateway (UK). The statement added that Posorja8, the only deepwater port in Ecuador with a capacity of 750,000 TEU, opened on time and budget.

It added that shortsea operator Unifeeder, which it acquired last year, “is delivering in line with expectations and continuing to benefit from structural changes in the market”.

Singling out challenges, it said “The container trade grew by low single digits in H1 2019 but concerns around the trade war continue to weigh on the outlook.”

Sultan bin Sulayem added “DP World is pleased to report like-for-like earnings growth of 22% in H1 2019 and attributable earnings of US$753M. This strong financial performance has been delivered in an uncertain trade environment, once again highlighting the strength of our portfolio.
"We have continued to make progress on our strategy to become a trade enabler and solutions provider as we look to participate across a wider part of the supply chain. We have invested significantly across our ports, logistics and maritime services businesses. The aim is to connect directly with customers to offer logistics solutions and remove inefficiencies in the supply chain to accelerate trade. We are seeing positive signs of progress in our new businesses that give us encouragement for the future.
“…Going forward, we aim to integrate our new acquisitions and deliver synergies with the objective of providing smart end-to-end solutions, which will improve the quality of our earnings and drive returns.
“While the near-term trade outlook remains uncertain with global trade disputes and regional geopolitics causing uncertainty to the container market, the strong financial performance of the first six months also leaves us well placed to deliver full-year results slightly ahead of market expectations.”