DP World Announces 2019 Full-year Results

DP World announces 2019 full-year results

DUBAI, (Pakistan Point News - 11th Mar, 2020) DP World announced its robust financial results for the year ended 31st December, 2019, stating that its revenue grew 36.1 percent and adjusted EBITDA increased 17.7 percent, with an adjusted EBITDA margin of 43 percent.

The delivered profit attributable to the owners of the company, before separately disclosed items, was US$1,328 million, up 4.6 percent and EPS of 160.0 US cents.

DP World Group Chairman and CEO, Sultan Ahmed Bin Sulayem, said, "DP World is pleased to report a like-for-like earnings growth of 5.4 percent in 2019 and attributable earnings of $1,328 million. The adjusted EBITDA grew 17.7 percent to $3,306 million, with margins at 43.0 percent on a reported basis and 49.6 percent on a like-for-like basis. This performance has been delivered in an uncertain trade environment, once again highlighting the resilience of our portfolio."

He added, "We have continued to make progress on our strategy to deliver integrated supply chain solutions to cargo owners and have focused our efforts on building end-to-end capabilities for several verticals, including the automotive, oil and gas and FMCG industries."

He further added, "More recently, after much deliberation, DP World has taken the decision to announce its plans to de-list its equity from the stock exchange and return to private ownership. Following the planned delisting, the leverage on the balance sheet will rise temporarily but we are confident of de-leveraging as we remain committed to a strong investment-grade rating in the medium term. Our immediate focus is to integrate our acquisitions and explore synergies with the objective of providing a range of smart end-to-end solutions which will improve the quality of our earnings and drive returns."

Speaking about the near-term outlook remaining a cause for concern with global trade disputes, the Covid-19 outbreak and regional geopolitics disrupting trade, Bin Sulayem said, "DP World is well-positioned to respond in the short term by focusing on disciplined investment and managing the cost base to protect profitability. Overall, we remain positive on the medium to long-term outlook of the industry."

"Finally, the board of DP World recommended a dividend of $332.0 million at 40 US cents per share, which is in line with the past policy of maintaining a payout ratio of at least 20 percent," he said in conclusion.