DP World reports like-for-like container throughput growth of -1.4% in H1 2016

DP World has reported that its consolidated throughput volumes in the first half of 2016 grew by 1.6% overall, though they fell by 1.4% on a like-for-like basis.

In the Middle East, Europe and Africa, throughput growth was -1.6% (-2.1% like-for-like). DP World asserted that growth in Europe was strong with volumes being bolstered by the ramp up at London Gateway, though UAE volumes contracted by 6.0% to 7.4m TEUs on account of falling volumes of lower margin cargo.

Asia Pacific and Indian Subcontinent volumes expanded by 6.6% (like-for-like also 6.6%), with growth primarily driven by Indian subcontinent terminals thanks to new capacity in Mumbai and a favourable trading environment.

In Australia and Americas, throughput growth was 19.4%, mainly thanks to the inclusion of Prince Rupert volumes since August 2015. Conversely, on a like-for-like basis, volumes were down 10.5% as volatile currency and weaker commodity prices hampered economic growth.

Financially, DP World described its results as “strong”. Revenue was up 10.2% year-on-year while adjusted EBITDA climbed by 27.2%. Revenue growth was supported by the acquisitions of Jebel Ali Free Zone in the UAE and Prince Rupert in Canada.

However, on a like-for-like basis, revenue and adjusted EBITDA increased by 2.5% and 6.6% respectively, “reflecting the challenging global trade environment”, according to the terminal operator.

DP World Group Chairman and CEO, Sultan Ahmed Bin Sulayem, commented, “We will maintain the existing shape of our ports portfolio that has a 70% exposure to origin and destination cargo and 75% exposure to faster growing markets. This positioning will enable us to deliver both earnings growth and shareholder value over the long term.

“The outlook for trade growth remains uncertain, however, we believe our portfolio is well positioned to continue to outperform the market.

“Looking ahead to the second half of the year, we expect throughput performance to improve, and like-for-like financial performance (excluding one-off items and foreign exchange movements) to be similar to the first half. Overall, the strong financial performance of the first six months leaves us well placed to meet full-year market expectations.”

Source: DP World