DP World H12022 revenue up 60%
Cash from operating activities increased 30% to $1.9 billion in 1H2022.
DP World reported a 60 percent increase in revenue at $7.9 billion for the first half of 2022 compared to $4.9 billion in H12021 on marginal (1.6 percent) increase in consolidated throughput at 22,918,000 TEUs.
While adjusted EBITDA was up 35 percent at $2.4 billion, EBITDA margin declined to 30.8 percent. Profit for the period was up 51 percent at $884 million.
Revenue growth was supported by acquisitions, strong performance of feedering services and growth in high margin cargo, according to an official release. Container revenue per TEU increased over 9 percent on higher demand for storage.
"Cash from operating activities increased by 29.6 percent to $1.9 billion in 1H2022 compared to $1.5 billion in 1H2021."
DP World has also broadened partnerships and monetisations to raise approximately $9 billion to strengthen its balance sheet. "CDPQ-UAE transaction raised $5 billion in tranche 1 for a 22 percent stake in the three UAE assets with up to a $3 billion expected to be raised in tranche 2."
Sultan Ahmed Bin Sulayem, Chairman and CEO, DP World, says: "We are delighted to report a record set of first half results with adjusted EBITDA growing 34.6 percent and attributable earnings rising 51.8 percent. This significant growth demonstrates that our strategy to focus on high margin cargo and to offer customised supply chain solutions will provide sustainable returns in the long term. Encouragingly, cargo owners continue to respond positively to our end-to-end product offering and we are focused on integrating our recent logistics acquisitions to further drive revenue synergies. We continue to invest in high growth verticals and markets to offer compelling supply chain solutions, and by leveraging our best-in-class infrastructure across logistics, ports & terminals, economic zones, digital and marine services, DP World aims to lower inefficiencies and improve connectivity in key trade lanes."
Operations
The Middle East, Europe and Africa division reported a 65 percent increase in revenue at $5.2 billion on 2 percent increase in consolidated throughput (12,370,000 TEUs). Adjusted EBITDA was up 25 percent at $1.7 billion, and profit after tax was up 19 percent at $1 billion.
Asia Pacific and India division revenue increased 67 percent to $1.3 billion on 3 percent decline in throughput (4,976,000 TEUs). Adjusted EBITA almost doubled to $552 million, and profit after tax more than doubled to $401 million.
"Capital expenditure in this region during the year was $76 million, mainly focused on economic parks in India."
Australia and Americas revenue was up 42 percent at $1.4 billion on nearly 5 percent increase in throughput (5,573,000 TEUs). Adjusted EBITDA was up 29 percent at $478 million and profit after tax came in at $304 million, up 34 percent.
2022 outlook
"1H2022 performance has been ahead of expectations but we expect growth rate to moderate in 2H2022 in a more challenging economic environment. Outlook is uncertain due to geopolitics, higher inflationary environment, currency fluctuations and continued supply chain disruptions," the release said.
