Results Highlights
– Revenue of USD3,968 million
– Revenue growth of 16.3% supported by acquisition of Economic Zones World (EZW)
– Like-for-like revenue increased by 5.6% driven by a 4.9% increase in containerised revenue
– Volume growth of 2.7% ahead of industry growth estimated at 1.1%
– Containerised revenue per TEU (twenty-foot equivalent unit) grew 3.2% on a like-for-like basis
– Non-container revenue increased 8.2% on a like-for-like basis and up by 64.6% on a reported basis due to acquisitions
– Adjusted EBITDA of USD1,928 million; record adjusted EBITDA margin of 48.6%
– Adjusted EBITDA margin reached a record high of 48.6% due to improved contribution from higher margin locations and EZW acquisition
Profit for the period attributable to owners of the Company of USD883 million
– Strong adjusted EBITDA growth resulted in a 30.7% increase in profit attributable to owners of the Company before separately disclosed items
Strong cash generation and robust balance sheet
– Cash from operating activities amounted to $1,928 million up from $1,486 million in 2014. Cash conversion remained high at 100% of adjusted EBITDA
– Free cash flow (post cash tax maintenance capital expenditure and pre dividends) amounted to USD1,595 million against USD1,228 million in 2014
– Leverage (Net Debt to adjusted EBITDA) increased to 3.2 times due to acquisitions and higher capex
– Total dividend per share increased by 28% to 30 US cents
– Ordinary dividend increased by 28% to 30 US cents to reflect growth in 2015 earnings
Continued investment in high quality long-term assets to drive long-term profitable growth
– USD1,389 million invested across the portfolio during the year
– Mumbai (India) and Yarimca (Turkey) both added 800k TEU of capacity each. 850k TEU capacity came on line with acquisition of Prince Rupert (Canada). Continued expansion in London Gateway Logistics Park (UK) and Jebel Ali Freezone (UAE)
– By the end of 2016 they expect to have approximately 86 million TEU of gross global capacity, an increase of approximately 15 million TEU since 2012, and over 100 million TEU of gross capacity by 2020, subject to market demand
– They expect capital expenditure in 2016 to be between USD1.2-1.4 billion with investment planned into Jebel Ali (UAE), Jebel Ali Freezone (UAE), London Gateway (UK), Prince Rupert (Canada).
– Key acquisition of EZW (UAE) and Prince Rupert (Canada) performing ahead of expectations
– Approximately USD4.0 billion invested in acquisitions which includes EZW (UAE), Prince Rupert (Canada)
– Integration of EZW and Prince Rupert progressing well with both businesses performing ahead of expectations. Freezone revenues grew 7% year-on-year on a pro-forma basis
DP World Group Chairman and CEO, Sultan Ahmed Bin Sulayem commented: “We are pleased to announce a strong set of financial results for 2015, reporting earnings growth of 31% year on year, driven by the acquisition of EZW and robust underlying growth. This financial performance has been achieved despite uncertain market conditions, which once again demonstrates the well diversified and resilient nature of our portfolio with its focus on high growth markets. In 2015, we have invested approximately USD5.4 billion with USD4.0 billion in acquisitions and USD1.4 billion in capex, and this investment leaves us well placed to capitalise on the significant medium to long-term growth potential of this industry. Furthermore, we are pleased to report strong progress with EZW with continued growth as we benefit from operating an integrated logistics hub.
“The Board of DP World is recommending increasing the dividend by 28% to a total dividend of USD249.0 million, or 30.0 US cents per share to reflect the increase in our earnings. The Board is confident of the Company’s ability to continue to generate cash and support our future growth whilst maintaining a consistent dividend payout.
“While 2016 is expected to be another challenging year for global trade, we have made an encouraging start to the year and current trading is in line with group expectations. Macro-economic conditions and geopolitical issues across some locations remain uncertain but we believe our portfolio is well positioned to deliver volume growth ahead of the market this year.
“We remain on course to deliver over 100 million TEU of capacity by 2020, while maintaining the existing shape of our portfolio that has a 70% exposure to origin and destination cargo and 75% exposure to faster growing markets. This positioning should enable us to deliver attractive earnings growth and shareholder value over the long term.”