DP World’s Adjusted EBITDA Reaches AED18.41 Billion, Marking a Historic Milestone.
DP World Limited, a global port operator, has announced strong financial results for the year ending 31st December 2022. The company reported a revenue growth of 58.9%, which led to an increase in revenue of AED 23.31 billion ($6.35 billion) to AED 62.89 billion ($17.13 billion) on a reported basis. Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA) grew by 31% to AED 18.41 billion ($5.01 billion), with an adjusted EBITDA margin of 29.3%.
The revenue growth was supported by acquisitions and like-for-like revenue growth, driven by the strong performance of Ports and Terminals and Marine Services. Containerised revenue increased by 12.1%, driven by higher demand for ancillary container services, while non-containerised revenue grew by 18.3% due to a strong performance from “Unifeeder” resulting from improved average freight rates.
DP World broadened its strategic partnerships to strengthen its balance sheet and drive long-term value. The partnerships with Caisse de dépôt et placement du Québe (CDPQ) and Hassana Investment Company (Hassana) partnerships in the UAE raised AED 27.17 billion ($7.4 billion) to help capture the growth potential of the wider region. In addition, the expansion of National Investment and Infrastructure Fund (NIIF) India partnership and a new partnership with the UK’s development arm, British International Investment (BII), raised approximately AED 2.20 billion ($600 million).
DP World reported a robust cash generation and a stronger balance sheet due to asset monetisations. The company generated cash from operating activities of AED 16.34 billion ($4.45 billion), a 20.6% increase compared to the previous year. The leverage (Net debt to adjusted EBITDA) on a pre-IFRS16 basis declined to 2.7x from 3.7x in FY2021, due to improved profitability and lower net debt. On a post-IFRS16 basis, net leverage stands at 3.0 times compared to 4.2 times in FY2021.
DP World aims to deliver supply chain solutions to cargo owners by leveraging its best-in-class infrastructure across logistics, ports and terminals, marine services, and digital. The company is committed to transitioning to net-zero in line with the UAE 2050 Initiative. DP World plans to invest more than AED 1.83 billion ($500 million) to reduce CO2 emissions by 700k tonnes in the next 5 years. The company was recognised as a top performer by Sustainalytics and achieved an A- (Leadership) rating by CDP Climate Change.
DP World Group Chairman and CEO Sultan Ahmed bin Sulayem said, “We are pleased to announce that DP World achieved record results in 2022, with our adjusted EBITDA rising by 31.0% to exceed AED 18.41 billion ($5 billion). Our continued focus on high-margin cargo and end-to-end supply chain solutions is the key driver of these results, and we believe this strategy will continue to yield sustainable returns over the long term. In 2022, we focused on strengthening the balance sheet and raised over AED 29.38 billion ($8 billion) through asset monetisations. This programme and new partnerships will allow us to continue to drive growth in our portfolio. Furthermore, the fresh capital also provides capacity and flexibility to invest in key growth markets while maintaining an investment-grade rating.”
DP World has announced that it intends to invest approximately AED6.24 billion ($1.7 billion) in various locations, including the UAE, Jeddah, London Gateway, Dakar, Banana, Callao, and DPW Logistics, during 2023. The company aims to increase revenues by transforming its business and building long-term relationships with cargo owners. Additionally, DP World aims to deliver supply chain solutions leveraging its best-in-class infrastructure in logistics, ports and terminals, marine services, and digital.
DP World is committed to reducing CO2 emissions by 700k tonnes in the next five years by investing more than AED1.83 billion ($500 million). The company has also been recognized for its sustainability efforts by achieving an A- rating by CDP Climate Change and being named a top performer by Sustainalytics.
DP World reported record results in 2022, with an adjusted EBITDA increase of 31.0% to exceed AED18.41 billion ($5 billion). The company’s continued focus on high-margin cargo and end-to-end supply chain solutions is the primary driver of these results, and DP World believes that this strategy will continue to yield sustainable returns over the long term. DP World strengthened its balance sheet in 2022 by raising over AED29.38 billion ($8 billion) through asset monetization, and the fresh capital will allow the company to drive growth in its portfolio while maintaining an investment-grade rating.
