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DP World profits grow 22% in H1 boosted by Economic Zone World buy

DP World profits grow 22% in H1 boosted by Economic Zone World buy
DP World grew its profits 22% to $455m in H1, thanks in large part to the acquisition of Economic Zone World (EZW), operator of Jebel Ali Free Zone.

First half revenues for the group hit $1.9bn, up from $1.6bn in the same period in 2014, with revenue per teu increasing 2.1%. So far this year DP World invested $3bn in  the acquisition of EZW and Fairview Container Terminal in Canada, which was completed on 18 August. A further $600m has been in invested in the group's existing projects.

Throughput in the Middle East, Europe and Africa region grew 5.2% to 10.7m teu in H1 2015 compared with 10.2m in H1 2014, while revenues increased 7.3% to $1.3m. This mitigated a 0.4% drop in Australia and Americas throughput, to 1.22m teu, and a 1.5% drop in the Asia Pacific and Indian Subcontinent region throughput to 2.3m teu.

During the period, DP World invested invested $597m in its portfolio, including capacity investments at India’s  Nhava Sheva Mumbai terminal and the opening of a new terminal in Rotterdam. Meanwhile Jebel Ali Terminal Three and Turkey’s Yarimca terminal are scheduled to open in the second half of 2015, adding 2m teu and 0.8m teu, respectively.

“We are pleased to announce a strong set of results for the first six months of 2015, reporting earnings growth of 22% year on year, aided by the acquisition of EZW,” said DP World chairman Sultan Ahmed Bin Sulayem. “This financial performance has been achieved despite uncertain market conditions, which once again demonstrates the well diversified and resilient nature of our portfolio. In 2015, we have invested over $3.5bn in acquisitions and expansionary capex, and this investment leaves us well placed to capitalise on the significant medium to long-term growth potential of this industry.”

Group chief executive Mohammed Sharaf added: “The near term outlook remains uncertain with limited visibility. However, we believe our business is well positioned to continue to outperform the market. We remain focused on delivering relevant new capacity in the right markets, improving efficiencies and managing costs to drive profitability. Our first half performance underpins our confidence in meeting full year market expectations.”