UAE company highlights its resilience in times of uncertainty
DP World announced its robust financial results for the year ended 31st December, 2019, stating that its revenue grew 36.1 per cent and adjusted EBITDA increased 17.7 per cent, with an adjusted EBITDA margin of 43 per cent.
The delivered profit attributable to the owners of the company, before separately disclosed items, was $1,328 million, up 4.6 per cent and EPS of 160.0 US cents.
DP World Group Chairman and CEO, Sultan Ahmed Bin Sulayem, said, “DP World is pleased to report a like-for-like earnings growth of 5.4 per cent in 2019 and attributable earnings of $1,328 million. The adjusted EBITDA grew 17.7 per cent to $3,306 million, with margins at 43.0 per cent on a reported basis and 49.6 per cent on a like-for-like basis. This performance has been delivered in an uncertain trade environment, once again highlighting the resilience of our portfolio.”
Integrated supply chain solutions
He added, “We have continued to make progress on our strategy to deliver integrated supply chain solutions to cargo owners and have focused our efforts on building end-to-end capabilities for several verticals, including the automotive, oil and gas and FMCG industries.”
He further added, “More recently, after much deliberation, DP World has taken the decision to announce its plans to de-list its equity from the stock exchange and return to private ownership. Following the planned delisting, the leverage on the balance sheet will rise temporarily but we are confident of de-leveraging as we remain committed to a strong investment-grade rating in the medium term. Our immediate focus is to integrate our acquisitions and explore synergies with the objective of providing a range of smart end-to-end solutions which will improve the quality of our earnings and drive returns.”
Speaking about the near-term outlook remaining a cause for concern with global trade disputes, the Covid-19 outbreak and regional geopolitics disrupting trade, Bin Sulayem said, “DP World is well-positioned to respond in the short term by focusing on disciplined investment and managing the cost base to protect profitability. Overall, we remain positive on the medium to long-term outlook of the industry.”
“Finally, the Board of DP World recommended a dividend of $332.0 million at 40 US cents per share, which is in line with the past policy of maintaining a payout ratio of at least 20 per cent,” he said in conclusion.
Earlier, DP World UAE Region announced across-the-board reductions in licence registration and administration costs for companies operating in its flagship Jebel Ali Free Zone, Jafza, as well as for new investors.
Customer Support Initiative
The far-reaching Jafza Customer Support Initiative is designed to slash business-related fees by between 50 and 70 per cent for registration, licensing and related administrative functions.
The initiative will immediately assist more than the 7,500 businesses that operate out of Jafza and hundreds of new businesses attracted by the Free Zone’s plug and play infrastructure and solutions for trade.
In addition, a range of other online services will now be offered free of cost as a direct result of Jafza’s on-going digitalization process.
Mohammed Al Muallem, CEO and Managing Director of DP World UAE Region and CEO of Jafza, said, “The initiative is highly significant and in line with the recent call by His Highness Sheikh Hamdan Bin Mohammed Bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of Dubai Executive Council, to bring down the cost of doing business and enhance investor experience.”
“It’s a timely move to inspire our customers towards pursuing their business targets with greater confidence and purpose,” he added, noting that the initiative was specifically designed to create value and opportunities for companies to channel their resources to support their activities sustainably.
Al Muallem said, “We believe this forward-looking initiative will enable companies to do business in a smarter way and generate more business and create new jobs.”
“Trade has always powered Dubai’s economic development and DP World has played a central role in supporting it. The activities of our flagships Jebel Ali Port and Jebel Ali Free Zone are very closely connected with companies located there to take advantage of the world class infrastructure facilities and investment incentives and to connect to global markets,” he continued.
The twin economic growth engines are examples to the world and serve as models DP World is rolling out in other locations across our network worldwide, the CEO explained. “As wealth generators, they are critical infrastructure assets that underpin prosperity and success for our nation.” DP World, UAE Region contributes to over 33.4 per cent of Dubai’s GDP and believes this initiative will further enhance the ease of doing business at Jafza, and continue to position Dubai as one of the global centers for commerce and trade.