DP World announced revenue growth of 11.0% to $8,533 million and adjusted EBITDA grew 0.4% to $3,319 million with adjusted EBITDA margin of 38.9% for the calendar year 2020.
The revenue growth was supported by acquisitions and full year contribution from Topaz Energy & Marine and P&O Ferries while Maritime and Logistics revenue was up 33.2%. But like-for-like revenue decreased by 7.0% and down 3.2% excluding one-off land sale in 2019. Like-for-like containerised revenue up 1.8%.
Adjusted EBITDA grew 0.4% and EBITDA margin for the year stood at 38.9%. Like-for-like adjusted EBITDA margin of 42.1%. Adjusted EBITDA excluding one-off land sale in 2019 decreased 0.8% year-on-year on a like-for-like basis displaying resilience of the wider portfolio. EBITDA margin declined due to a change in mix with the consolidation of lower margin Logistics businesses.
Cash from operating activities increased 17.8% to $2,901 million in 2020 ($2,462 million in 2019) as we focused on managing costs to preserve cash. Free cash flow (post cash tax and maintenance capital expenditure) improved 19.0% $2,447 million. ($2,058 million 2019).
Leverage (Net debt to adjusted EBITDA) increased to 3.7 times (Pre-IFRS16) from 3.4 times at FY2019 due to higher net debt of $11.0bn ($10.3bn 2019). On a post-IFRS16 basis, net leverage stands at 4.3 times compared to 3.9 times at FY2019.
DP World credit rating remains investment grade at BBB- with Stable Outlook by Fitch and Baa3 with Stable Outlook by Moody’s.
Global Investment Platform with Caisse de dépôt et placement du Québec (CDPQ) expanded to $8.2 billion from $3.7 billion.
Ports & Terminals announced new investment in Senegal, Angola and Indonesia and Logistics & Maritime investment includes announced acquisition of Transworld and UNICO. A capital expenditure of $1,076 million ($1,146 million in 2019) was invested across the existing portfolio.
Capital expenditure guidance for 2021 is for up to $1.2 billion with investments planned into UAE, Jeddah (Saudi Arabia), London Gateway (UK), Berbera (Somaliland), Sokhna (Egypt) and Caucedo (Dominican Republic).
The company said pandemic, geopolitics and trade war continue to cause some uncertainty but medium-to-long term outlook remains positive. It reported encouraging start to trading in 2021, saying the company remains focused on delivering integrated supply chain solutions to cargo owners to drive growth and returns.