Global trade enabler DP World today announces strong financial results for the year ended 31 December 2018. On a reported basis, revenue grew 19.8% and adjusted EBITDA increased 13.7% with adjusted EBITDA margin of 49.7%, delivering profit attributable to owners of the Company, before separately disclosed items, of $1,270 million, up 5.1%, and EPS of 153.0 US cents. On a like-for-like basis, revenue grew 4.2%, adjusted EBITDA increased by 6.6% with adjusted EBITDA margin of 54.1%, and earnings attributable to owners of the Company increased 7.6%.
Results Highlights
- Revenue of $5,646 million
- Revenue growth of 19.8% driven by acquisition of Drydocks World, Dubai Maritime City (DMC), Cosmos Agencia Maritima, Continental Warehousing Corporation (CWC) and Santos consolidation
- Like-for-like revenue increased by 4.2% driven by a 6.3% increase in total containerized revenue.
- Adjusted EBITDA of $2,808 million and adjusted EBITDA margin of 49.7%
- Adjusted EBITDA grew 13.7% and achieved an EBITDA margin for the full year of 49.7%. Like-for-like adjusted EBITDA margin was at 54.1%.
- Profit for the period attributable to owners of the Company of $1,270 million
- Strong adjusted EBITDA growth resulted in a 5.1% increase in profit attributable to owners of the Company before separately disclosed items on a reported basis and 7.6% growth on a like-for-like basis at constant currency.
Strong cash generation and robust balance sheet:
- Cash from operating activities was $2,161 million.
- Free cash flow (post cash tax maintenance capital expenditure and pre-dividends) amounted to $1,811 million.
- Leverage (Net Debt to adjusted EBITDA) at 2.8 times.
Total dividend per share increased by 4.9% to 43 US cents:
- Ordinary dividend increased by 4.9% to 43 US cents to reflect earnings growth in 2018.
Disciplined investment in high quality long-term assets to drive long-term profitable growth, and create long-term value for shareholders:
- Capital expenditure of $908 million invested across the portfolio during the year, below the Group’s guidance of approximately $1,400 million in 2018.
- In 2018, gross global capacity was at 90.8 million TEU. Consolidated capacity was at 49.7 million TEU
- The acquisitions of Drydocks, DMC, CWC, Cosmos Agencia and Unifeeder are performing in line with expectations and we have seen increased contribution to our revenue line.
- We expect capital expenditure in 2019 to be up to $1.4 billion with investment planned mainly into UAE, Posorja (Ecuador), Berbera (Somaliland), Dakar (Senegal) and Sokhna (Egypt).
Continued investment in Ports and Logistics:
- DP World continued to invest in solution providers and acquired the integrated multimodal logistics player Continental Warehousing Corporation (CWC) in India, Cosmos Agencia Marítima in Peru, and the Unifeeder Group in Denmark, which operates the largest container common user feeder and growing shortsea network in Europe. We have also announced the acquisition of the pan-European logistics business, P&O Ferries.