DP World has announced increased revenue and profit for 2022.
Reporting strong financial results for the year it said revenue grew 58.9% to AED62.9bn ($17.1bn).
The Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA) grew 31% to AED18.4bn ($5bn) with adjusted EBITDA margin of 29.3%.
DP World announced that revenue increased by AED23.3bn ($6.3bn) to AED62.9bn ($17.1bn)
DP World results
The revenue growth of 58.9% was supported by acquisitions and like-for-like revenue growth driven by the solid performance of Ports and Terminals and Marine Services.
The company reported that containerised revenue increased by 12.1%, driven by higher demand for ancillary container services. Like-for-like non-containerised revenue is up 18.3%, with a strong performance from “Unifeeder” due to improved average freight rates.
DP World also reported that Adjusted EBITDA increased by 31% to AED18.4bn ($5bn) on strong revenue growth, and EBITDA margin for the year stood at 29.3%. Like-for-like adjusted EBITDA margin stood at 37.2%.
The broadening of strategic partnerships strengthened balance sheet and drove long-term value in addition to broadening of partnerships and monetisations increased AED29.4bn ($8bn) to significantly strengthen balance sheet and provide long-term flexibility.
The partnerships with Caisse de dépôt et placement du Québe (CDPQ) and Hassana Investment Company (Hassana) in the UAE raised AED27.2bn ($7.4bn) to help capture the growth potential of the wider region.
The expansion of National Investment and Infrastructure Fund (NIIF) India partnership and new partnership with the UK’s development arm British International Investment (BII) increased AED2.2bn ($600m).
DP World also announced robust cash generation and a stronger balance sheet on asset monetisations, with cash generated from operating activities increased by 20.6% to a record AED16.3bn ($4.4m) in 2022, compared to AED13.5bn in 2021 ($3.7bn).
DP World’s credit rating improved by one notch by Moody’s to Baa2 with Stable Outlook on improved financial performance and a stronger balance sheet. Fitch credit rating improved to Positive outlook with BBB- rating.
DP World is committed to a strong investment grade rating in the medium term.
Capital expenditure guidance for 2023 is for approximately AED6.24 billion ($1.7bn) to be invested in the UAE, Jeddah (Saudi Arabia), London Gateway (United Kingdom), Dakar (Senegal), Banana (Democratic Republic of the Congo), Callao (Peru) and DPW Logistics (South Africa).
The company also announced that it is committed to transition to net zero in line with the UAE 2050 Initiative as decarbonisation remains a core focus.
DP World is committed to investing more than AED1.8bn ($500m) to reduce CO2 emissions by 700k tonnes in the next five years.
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% to exceed AED18.4bn ($5bn).
“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 AED29.4bn ($8bn) 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.”
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