DP World reported 7.5 percent growth in revenue in the Middle East, Europe and Africa regions to $3.1 billion during H1 2021, benefitting from the full contribution of the TIS terminals in Ukraine and the new port concession in Angola.
Profit after tax was up 11 percent to $877 million from $790 million during H1 2020, the company said while announcing strong financial results for the six months to June 30, 2021.
DP World invested $516 million in the regions, mainly focused on capacity expansions in UAE, Sokhna (Egypt), Berbera (Somaliland), and London Gateway (UK).
In the first half of 2021, the company invested $687 million in its existing portfolio, adding capacity in key markets and investing selectively in container port terminals that offer compelling value. The company started operations of the multipurpose terminal in Luanda, Angola, the fifth largest economy in Africa.
DP World’s existing operations in Dakar (Senegal) have seen solid growth in recent years with high utilisation rates and has announced a 50-year concession agreement and development of Ndayane terminal in Senegal. The new port will support Senegal’s development over the next century, and further reinforce Dakar’s role as a major logistics hub and gateway to West and North West Africa.
Capital expenditure guidance for 2021 is for approximately $1.2 billion with investments planned into UAE, Canada, Jeddah (Saudi Arabia), Berbera (Somaliland), Sokhna (Egypt), Luanda (Angola), P&O Ferries, London Gateway (UK) and Callao (Peru).
The company’s cash from operating activities remained strong at $1.5 billion compared to $1.1 billion in the same period last year.
DP World Group chairman and CEO, Sultan Ahmed Bin Sulayem, said, “We are delighted with the strong set of first half results with adjusted EBITDA growing 18.2 percent and attributable earnings rising 51.9 percent. In recent years, we have seen cargo owners respond positively to our integrated end-to-end product offering and we aim to continue with our drive to enable trade. Our recently announced acquisitions of Imperial Logistics and syncreon bring value-add capabilities in high growth verticals and markets, which will allow us to offer a more compelling set of supply chain solutions. DP World aims to lower inefficiencies and provide improved connectivity in fast growing trade lanes such as Asia, Middle East & Africa.”
The acquisition of Johannesburg-listed Imperial Logistics is part of DP World’s transformation into a logistics solutions provider. Imperial has a presence across 25 countries, including a significant footprint in the African market.
Both Imperial Logistics and syncreon bring complex solutions capability and strong long-term relationships with cargo owners that fit with DP World’s vision to provide smart, tech-led supply chain solutions to enable trade across key markets.
“Overall, the near-term outlook remains positive. While we are mindful that the Covid-19 pandemic and geopolitical uncertainty could once again disrupt the global economic recovery, we remain positive on the medium to long-term fundamentals of the industry and DP Worlds ability to continue to deliver sustainable returns,” Bin Sulayem added.
Market conditions in the Middle East, Europe and Africa regions were positive as volumes rebounded strongly. Consolidated throughput was up 15.9 percent excluding Jebel Ali (UAE), with Europe being the key driver of growth. However, Jebel Ali volumes turned positive with 3.4 percent growth in the first half as market conditions stabilised.