DP World Limited has announced resilient financial results for the six months to 30 June 2020 with like-for-like adjusted EBITDA growing 1% year-on-year.
Revenues grew to $4,076 million with a growth of 17.7% on reported basis supported by acquisitions. Meanwhile, like-for-like revenue decreased by 11.6% and down 3.4% excluding Emaar land sale in 2019.
Adjusted EBITDA stood at $1,534 million. Margin declined due to a change in mix with the consolidation of lower margin logistics businesses.
Profit for the period attributable to owners of the Company decreased to $313 million.
Cash from operating activities remained strong at $1,124 million in H1 2020 compared to $1,046 million in H1 2019.
The company's portfolio delivered better than expected performance in in the frst half of 2020 given Covid-19 pandemic. The outlook however, remains uncertain but trade is expected to recover when economies re-open.
DP World's credit rating remains investment grade at BBB- with Stable Outlook by Fitch and Baa3 with Stable Outlook by Moody's.
DP World Group Chairman and CEO, Sultan Ahmed Bin Sulayem, commented: "The Covid-19 outbreak has undoubtedly resulted in one of the most challenging periods in the history of our industry.
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"Our gross volumes have declined by 3.9% in 1H2020 which compares favourably against an estimated industry decline of 10%. However, our like-for-like EBITDA6, excluding land sale in the prior period, has grown by 1.1% during this period which demonstrates that we have managed costs efficiently.
"This outperformance once again demonstrates that we are in the right locations and a focus on origin and destination cargo will continue to deliver the right balance between growth and resilience.
Despite the challenges, we have continued to make progress on our strategy to deliver an integrated supply chain solution to cargo owners.Sultan Ahmed Bin Sulayem, Group Chairman and CEO of DP World
"We have focused our efforts on digitizing logistics and developed solutions 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.
"In 2020, DP World de-listed its equity from the stock exchange and returned to private ownership. The strength and resilience that our business continually demonstrates throughout the cycles is due to the investment the Group has made over the years in response to changes in our industry.
"Our ability to adapt and change has been the key to our success, and we must continue to evolve for continued growth.
"We believe this long-term approach to business is not aligned with the short term thinking of equity markets and consequently the next stage of DP World's development will take place as a private company.
"Looking ahead, our focus is on the safety of our employees, integration of our recent acquisitions to drive synergies, containing costs to protect profitability and managing growth capex to preserve cashflow.
"Overall, we are encouraged that our business has performed better than expected given the Covid-19 pandemic and, while the outlook is still uncertain, we remain positive on the medium to long-term fundamentals of the industry."
Read More: DP World Volumes Down 3.9% in H1 2020