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 EBITDA grew by 7.0% to $2,611 million with adjusted EBITDA margin of 28.9%.
Revenue increased by 13.9% to US$9,037 million mainly attributable to the full six months consolidation of Imperial Logistics (2022 – 4 months).
Like-for-like growth was driven mainly from strong performance of Imperial Logistics in Africa and Drydocks World in UAE.
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%.
Net cash generated from operating activities stood at US$1,951 million 1H 2023 (compared to US$1,931 million in 1H 2022).
Leverage on a pre-IFRS16 basis stands at 2.8x (FY2022: 2.7x).
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 Plans 3 Million TEU of New Container Handling Capacity by End of 2023
Capital expenditure of US$910 million ($741 million in 1H 2022) was invested across the existing portfolio.
DP World is focused on driving revenue synergies and building long-term relationships with cargo owners while being committed to transitioning 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. The comapny has committed to investing more than $500 million to reduce CO2 emissions by 700k tonnes in the next 5 years.
Resilient H1 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.
DP World Group Chairman and CEO, Sultan Ahmed Bin Sulayem, commented: “We are pleased to share a resilient set of results for the first half of 2023, with our adjusted EBITDA enhancing by 7.0% to surpass $2.6 billion.
"Despite facing a softer container market and weakened freight rates amid challenging economic conditions, our focus on high-margin cargo, end-to-end bespoke supply chain solutions and cost optimization has been crucial in securing these results.
"This strategy has not only been effective during these challenging times but also lays the foundation for our sustainable long-term growth and returns.
"Our logistics vertical has demonstrated robustness in this demanding economic landscape, attracting more cargo owners to our platform. The positive feedback to our end-to-end product emphasis the value of our customised solutions enables customers to conduct trade more effectively.
"Strategic investments in high-growth sectors enable us to provide value-added solutions, and we remain committed to continuously enhancing our logistics platform. This includes addressing supply chain inefficiencies and enhancing connectivity in crucial trade lanes to serve cargo owners better.
"Notably, we continue to make substantial progress towards our 2050 net zero carbon target. Our recent investment in renewable energy through the I-REC programme has significantly cut DP World UAE business carbon emissions by 47%.
"We are confident of achieving our goal to cut CO2 emissions by 700k tonnes which accounts for approximately 22% of our total emission within the next five years.
"In summary, our balance sheet remains robust, and we continue to generate high levels of cash flow, which provides us the flexibility to invest in the growth of our existing portfolio and new investment opportunities when they arise.
"While the near-term trade outlook may be uncertain due to macroeconomic and geopolitical factors, the solid financial performance of the first six months positions us well to deliver a steady set of full-year results.
"We remain optimistic about the medium to long-term prospects of the industry and DP World’s capacity to consistently generate sustainable returns.”
