DP World, which recently announced delisting of its shares from Nasdaq Dubai, reported revenue growth of 36.1% and adjusted EBITDA increase of 17.7%, delivering profit of $1.3 billion, but without separate disclosures.
Revenues were of $7,686 million, with a growth of 36.1% driven by acquisitions including P&O Ferries (UK), Topaz Energy & Marine (UAE) and the two terminals in Chile (Puerto Central and Puerto Lirquen) as well as the full year impact from Continental Warehousing Corporation (India), Cosmos Agencia Maritima (Peru) and Unifeeder (Denmark), and the consolidation of Australia region.
Like-for-like revenue increased by 2.3% driven by 16.0% growth in non-container revenue.
The company also reported adjusted EBITDA of $3,306 million and adjusted EBITDA margin of 43.0%. Adjusted EBITDA grew 17.7% and achieved an EBITDA margin for the full year of 43.0%. Like-for-like adjusted EBITDA margin was at 49.6.%.
Adjusted EBITDA growth resulted in a 4.6% increase in profit attributable to owners of the company before separately disclosed items on a reported basis and 5.4% growth on a like-for-like basis at constant currency.
The company claimed strong cash generation and robust balance sheet, with cash from operating activities at $2,462 million.Free cash flow (post cash tax maintenance capital expenditure and pre-dividends) amounted to $2,058 million.
Leverage (Adjusted Net Debt to adjusted EBITDA) was at 3.9 times. Pre IFRS 16 leverage stands at 3.4 times. The company proposed ordinary dividend of 40 US cents which is broadly in line with historic pay-out ratio.
DP World raised $2.3 billion through issuance of long-term bonds at record low rates to remove refinancing risk.
The company continued investments across the portfolio, including Ports & Terminals investments at two new terminals in Chile (Puerto Central and Puerto Lirquen) and consolidation of terminals in Australia.
Logistics investment includes acquisition of Pan-European logistics platform of P&O Ferries and Marine logistics operator, Topaz Marine & Energy. Investment of $1,146 million was made across the existing portfolio.
Capital expenditure guidance for 2020 is up to $1.4 billion with investments planned in UAE, Prince Rupert (Canada), London Gateway (United Kingdom), Jeddah (Saudi Arabia), Callao (Peru), Sokhna (Egypt) and Berbera (Somaliland).
The company said global trade outlook remains uncertain due to supply chain disruption caused by Covid-19 outbreak.
Also published on Medium.