Dubai: The Dubai owned ports operator DP World recorded a sizeable 26 per cent increase in 2021 revenues to $10.77 billion, The profit attributed to shareholders (before separately disclosed items) comes to $1.1 billion.
The company said there is an "encouraging start to trading" so far this year. “We are delighted to report these strong set of results with adjusted EBITDA growing by $500 million to a new record of $3.8 billion," said Sultan Bin Sulayem, group Chairman and CEO. "Importantly, growth was broadbased across our terminals and logistics assets as we begin to drive synergies across our portfolio.
Container-generated revenues came to $4.62 billion for 2021, up by 18.7 per cent. Container-generated revenues came to $4.62 billion for 2021, up by 18.7 per cent. Gross throughout last year was 77.93 TEUs, which is a 9.4 per cent increase on 2020.
The containerized revenue growth was higher than volume gains “mainly due to higher storage and reefer monitoring revenue”. It was on the non-containerised revenue creation that DP World recorded a substantial spike, by 32.7 per cent to $6.1 billion.
- DP World's cash from operating activities increased 27.3% to a 'record' $3.69 billion in 2021 (from $2.90 billion in 2020).
- Its leverage (net debt to adjusted EBITDA) is now at 3.7 times "despite higher net debt of $12.2 billion ($11 billion in 2020).
- On a post-IFRS16 basis, net leverage stands at 4.2 times compared to 4.3 times during 2020.
- 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 is committed to a strong investment grade rating in the medium term," the company said in the statement.
"This significant growth once again demonstrates that our strategy to deliver integrated supply chain solutions will drive sustainable long-term returns," according to Bin Sulayem. "Looking ahead, we expect our portfolio to continue to deliver growth and, while the year has started encouragingly, we remain mindful that the geopolitical uncertainty, COVID-19 pandemic, continued supply chain disruptions and rising inflation could hinder the global economic recovery.”
This year, DP World – which has made a string of overseas acquisitions in the last two years, is planning new investments in the UAE as well as Jeddah. Plus, there will be more going into the London Gateway facility, and into Berbera (Somaliland), Egypt’s Sokhna, Indonesia and Peru. These combined will total up to $1.4 billion. Last year, the capital expenditure totalled $1.39 billion and up from $1.07 billion in 2020.
In addition, "Our recently announced acquisition of Imperial Logistics and syncreon will bring value-add capabilities in high growth verticals and markets, which will allow us to offer a more compelling set of supply chain solutions," said Bin Sulayem.
DP World aims to lower inefficiencies and provide improved connectivity in fast growing trade lanes such as Asia, Middle East and Africa