ID :
113421
Thu, 03/25/2010 - 14:21
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Shortlink :
https://oananews.org//node/113421
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DP World announces 2009 financial results
Dubai, Mar 25, 2010 (WAM)- DP World has announced financial results from its global portfolio of marine terminals, which reflect the resilience of the portfolio and the inherent flexibility of the business model. DP World reported a stronger second half of 2009 as some volume returned and the benefits of management's swift action on costs came through.
Summary 1: Consolidated throughput of 25.6 million TEU2 (27.8 million) Revenue of US$2,821 million (US$3,283 million) EBITDA3 of US$1,072 million (US$1,340 million) EBITDA margins of 38% (40.8%) Adjusted net profit after tax from continuing operations of US$333 million (US$621 million) Gross cash generation from operating activities remained very strong at US$992 million (US$1,204 million) Earnings per share 2.01 cents (2.90 cents) Dividend of 0.82 of a US cent (0.69 of a US cent) DP World has reported better than expected results reflecting management action and the continued investment in new terminals despite the challenging macroeconomic environment and the decline in global trade experienced in 2009.
Taking the macroeconomic and other factors into consideration, DP World has performed remarkably well. Not only did the Group report a substantially smaller decline in volumes than the industry4 maintaining higher utilisation rates, but also reported EBITDA in excess of US$1 billion and profits well in excess of US$300 million. Gross cash generation from operating activities remained very strong at US$992 million.
The focus on maintaining and generating incremental revenue, improving efficiencies and cutting costs across all container terminals has mitigated the impact of non-container revenue declines and successfully delivered a higher level of EBITDA in the second half of the year than the first half and an incremental improvement in underlying5 EBITDA margins in the second half. These actions leave DP World in a far stronger position moving through 2010 and into 2011.
DP World Chairman Sultan Ahmed Bin Sulayem said: "2009 has been a challenging year for all economies and across all industries. In an industry such as ours, where the average terminal concession is granted for in excess of 25 years, we must continue to focus on, and invest for the longer term.
"2009 presented the management teams with an opportunity to review all of our operations and drive through structural cost improvements and operational efficiencies. Tough decisions were taken, the results of which will ensure we are better placed to deliver profitable growth for the future.
"Our confidence in the long term nature of our industry meant that we continued to invest in much needed new capacity - Doraleh in Djibouti and Saigon in Vietnam opened during the year and Callao in Peru and Vallarpadam in India will open in 2010. Both these, and our new development pipeline, will position us strongly for growth over the medium to long term."
Chief Executive Officer Mohammed Sharaf commented: "Our 2009 results are an excellent achievement for DP World given the significant reduction in global trade and the uncertainty surrounding the operating environment throughout the year.
"Faced with the first decline in container volumes the industry has ever seen, our global portfolio, which is focused on emerging market origin and destination and gateway cargo, demonstrated resilience with consolidated volumes only falling 8%. In addition, our management teams have sought to adapt our business model, improving efficiencies and cutting and restructuring costs to preserve margins and deliver profit.
"Our stronger second half performance reflects the hard work of our management teams, with higher volumes, improved utilisation rates across the majority of our terminals and better than expected cost reductions. Taken together, these led to an improvement in underlying6 EBITDA margins in the second half, which will provide a solid platform to build on as we go into 2010.
"In the first two months of 2010 we have seen 4% volume growth across our portfolio from a very low base last year and an improvement in EBITDA margins from the final quarter of 2009 as cost cutting initiatives continue to be realised.
"We are seeing positive signs of recovery, however it is still too early in 2010 to confirm sustainability as the macroeconomic environment and global trade patterns remain unpredictable. We will continue to focus on increasing market share and driving efficiencies through our terminals to generate revenue whilst maintaining tight cost control measures.
"These initiatives, together with the return of volume growth combined with the initiatives we have undertaken in 2009, will deliver an improvement in results over last year.
"We are confident about the long term outlook for the container terminal industry and believe the challenges and our initiatives implemented in 2009 will position DP World in a far stronger position as we move into the future."
Summary 1: Consolidated throughput of 25.6 million TEU2 (27.8 million) Revenue of US$2,821 million (US$3,283 million) EBITDA3 of US$1,072 million (US$1,340 million) EBITDA margins of 38% (40.8%) Adjusted net profit after tax from continuing operations of US$333 million (US$621 million) Gross cash generation from operating activities remained very strong at US$992 million (US$1,204 million) Earnings per share 2.01 cents (2.90 cents) Dividend of 0.82 of a US cent (0.69 of a US cent) DP World has reported better than expected results reflecting management action and the continued investment in new terminals despite the challenging macroeconomic environment and the decline in global trade experienced in 2009.
Taking the macroeconomic and other factors into consideration, DP World has performed remarkably well. Not only did the Group report a substantially smaller decline in volumes than the industry4 maintaining higher utilisation rates, but also reported EBITDA in excess of US$1 billion and profits well in excess of US$300 million. Gross cash generation from operating activities remained very strong at US$992 million.
The focus on maintaining and generating incremental revenue, improving efficiencies and cutting costs across all container terminals has mitigated the impact of non-container revenue declines and successfully delivered a higher level of EBITDA in the second half of the year than the first half and an incremental improvement in underlying5 EBITDA margins in the second half. These actions leave DP World in a far stronger position moving through 2010 and into 2011.
DP World Chairman Sultan Ahmed Bin Sulayem said: "2009 has been a challenging year for all economies and across all industries. In an industry such as ours, where the average terminal concession is granted for in excess of 25 years, we must continue to focus on, and invest for the longer term.
"2009 presented the management teams with an opportunity to review all of our operations and drive through structural cost improvements and operational efficiencies. Tough decisions were taken, the results of which will ensure we are better placed to deliver profitable growth for the future.
"Our confidence in the long term nature of our industry meant that we continued to invest in much needed new capacity - Doraleh in Djibouti and Saigon in Vietnam opened during the year and Callao in Peru and Vallarpadam in India will open in 2010. Both these, and our new development pipeline, will position us strongly for growth over the medium to long term."
Chief Executive Officer Mohammed Sharaf commented: "Our 2009 results are an excellent achievement for DP World given the significant reduction in global trade and the uncertainty surrounding the operating environment throughout the year.
"Faced with the first decline in container volumes the industry has ever seen, our global portfolio, which is focused on emerging market origin and destination and gateway cargo, demonstrated resilience with consolidated volumes only falling 8%. In addition, our management teams have sought to adapt our business model, improving efficiencies and cutting and restructuring costs to preserve margins and deliver profit.
"Our stronger second half performance reflects the hard work of our management teams, with higher volumes, improved utilisation rates across the majority of our terminals and better than expected cost reductions. Taken together, these led to an improvement in underlying6 EBITDA margins in the second half, which will provide a solid platform to build on as we go into 2010.
"In the first two months of 2010 we have seen 4% volume growth across our portfolio from a very low base last year and an improvement in EBITDA margins from the final quarter of 2009 as cost cutting initiatives continue to be realised.
"We are seeing positive signs of recovery, however it is still too early in 2010 to confirm sustainability as the macroeconomic environment and global trade patterns remain unpredictable. We will continue to focus on increasing market share and driving efficiencies through our terminals to generate revenue whilst maintaining tight cost control measures.
"These initiatives, together with the return of volume growth combined with the initiatives we have undertaken in 2009, will deliver an improvement in results over last year.
"We are confident about the long term outlook for the container terminal industry and believe the challenges and our initiatives implemented in 2009 will position DP World in a far stronger position as we move into the future."
