DP World Limited announces strong financial results for the year ended 31 December 2021. On a reported basis, revenue grew 26.3% to $10,778 million and adjusted EBITDA grew 15.3% to $3,828 million with adjusted EBITDA margin of 35.5%.

Results Highlights

 Revenue increased by $2,245 million to $10,778 million (Revenue growth of 26.3% on reported basis)

• Revenue growth of 26.3% supported by acquisitions and new concessions including Angola, Unico and Transworld.  
• Like-for-like revenue increased by 11.7% with like-for-like containerised revenue up 14.2% driven by volume growth.
• Containerized revenue growth is higher than volume growth mainly due to higher storage and reefer monitoring revenue.
• Like-for-like non containerised revenue up 9.5% with a strong performance from the Feedering business.

Adjusted EBITDA of $3,828 million and adjusted EBITDA margin of 35.5%

• Adjusted EBITDA grew 15.3% and EBITDA margin for the year stood at 35.5%. Like-for-like adjusted EBITDA margin of 37.9%.
• Reported EBITDA margin declined due to a change in mix with the consolidation of lower margin Logistics businesses.

Cash Generation Accelerates  

• Cash from operating activities increased 27.3% to a record $3,692 million in 2021 ($2,901 million in 2020).
• Leverage (Net debt to adjusted EBITDA) at 3.7 times (Pre-IFRS16) despite higher net debt of $12.2bn ($11.0bn 2020). On a post-IFRS16 basis, net leverage stands at 4.2 times compared to 4.3 times at FY2020. 
• DP World credit rating remains investment grade at BBB- with Stable Outlook by Fitch and Baa3 with Stable Outlook by Moody’s.
• DP World is committed to a strong investment grade rating in the medium term.

Strong Operational Performance Despite Disruptions

• Terminals have remained open to service cargo owners despite challenge with pandemic.
• DP World delivered a strong operational performance with berth productivity maintained despite low schedule reliability.

Disciplined Investment Across the Portfolio

• Capital expenditure of $1,393 million ($1,076 million in 2020) invested across the existing portfolio.
• Capital expenditure guidance for 2022 is for up to $1.4 billion with investments planned into UAE, Jeddah (Saudi Arabia), London Gateway (UK), Berbera (Somaliland), Sokhna (Egypt), Indonesia and Callao (Peru).

Acquisitions to bring value-add capabilities, exposure to high growth markets and long-term relationship with cargo owners

• Acquisitions of Syncreon and Imperial Logistics[8].
• Acquisitions bring value-add capabilities in fast growing markets and verticals.
• Adds long-term relationship with cargo owners.

Partnership with CDC to create Africa Investment Platform

• Partnership with UK’s development finance Institution, CDC, with DP World investing $1bn in ports and logistics across Africa.
• Creation of platform will accelerate investment in Africa and remove trade inefficiencies.

Strong 2021 Performance, Encouraging Start to 2022

• Portfolio has delivered strong performance in 2021.
• Encouraging start to trading in 2022. We remain focused on delivering integrated supply chain solutions to cargo owners to drive growth and returns.
• Pandemic, rising inflation and geopolitics continues to cause some uncertainty but medium-to-long term outlook remains positive.

DP World Group Chairman and CEO, Sultan Ahmed Bin Sulayem, commented:

“We are delighted to report these strong set of results with adjusted EBITDA growing by $0.5 billion to a new record of $3.8 billion. Importantly, growth was broad based across our terminals and logistics assets as we begin to drive synergies across our portfolio. This significant growth once again demonstrates that our strategy to deliver integrated supply chain solutions will drive sustainable long-term returns.

Furthermore, our recently announced acquisition of Imperial Logistics and syncreon will bring value-add capabilities in high growth verticals and markets, which will allow us to offer a more compelling set of supply chain solutions. By leveraging our best-in-class infrastructure across inland logistics, ports & terminals, economic zones and marine logistics network, DP World aims to lower inefficiencies and provide improved connectivity in fast growing trade lanes such as Asia, Middle East & Africa.

“Importantly, we continue to make positive progress with our capital recycling program and this combined with the strong operational performance, leaves us well positioned to deliver on our 2022 combined (DP World and PFZW) leverage target of less than 4x Net Debt to adjusted EBITDA (Pre IFRS16)[9].

“Overall, we are pleased with the 2021 performance and looking ahead to 2022, we expect our portfolio to continue to deliver growth and, while the year has started encouragingly, we remain mindful that the geopolitical uncertainty, Covid-19 pandemic, continued supply chain disruptions and rising inflation could hinder the global economic recovery.”

[1] Results before separately disclosed items (BSDI) primarily excludes non-recurring items. DP World reported separately disclosed items of a $192 million loss.

[2] Like-for-like at constant currency is without the new additions at KRIL (India), TIS (Ukraine), Fraser Surrey Docks (Canada), Unico (South Korea), Luanda (Angola), Transworld & Avana (India), Digital Solution & Logistics and syncreon (USA).

[3] Gross throughput is throughput from all consolidated terminals plus equity-accounted investees.

[4] Consolidated throughput is throughput from all terminals where the Group has control as per IFRS.

[5] Adjusted EBITDA is Earnings before Interest, Tax, Depreciation & Amortisation and including share of profit from equity-accounted investees before separately disclosed items.

[6] The adjusted EBITDA margin is calculated by dividing adjusted EBITDA by revenue.

[7] Like-for-like adjusted EBITDA margin.

[8] Imperial expected to close on 14 March 2022

[9] DP World & PFZW combined pre IFRS 16 Net Debt to Adjusted EBITDA stands 5.9x as at 31  Dec  2021