EPS grows 31% in 2015 driven by EZW acquisition and robust like-for-like growth

Global trade enabler DP World has announces strong financial results from its global portfolio for the twelve months ended 31 December 2015. Revenue grew 16.3% and adjusted EBITDA increased 21.4%, delivering profit attributable to owners of the Company, before separately disclosed items1 , of $883 million, up 30.7%, and EPS of 106.3 US cents. 

Results Highlights

Revenue of $3,968 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-forlike 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 $1,928 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 $883 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 $1,595 million against $1,228 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

• $1,389 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 we 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
• We expect capital expenditure in 2016 to be between $1.2-1.4 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 $4.0 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