Dubai: DP World, the Dubai-based ports operator, reported on Monday a 28 per cent year-on-year jump in net profit for 2016 aided by the acquisition of Jebel Ali Free Zone in the UAE and a terminal acquisition in Canada.
Net profit attributable to the owners of the company for 2016 reached $1.13 billion compared to $883 million in profits in 2015. Meanwhile, revenues rose nearly 5 per cent year-on-year in 2016 to reach $4.16 billion.
Sultan Bin Sulayem, group chairman and chief executive officer of DP World Group, said the company’s volumes have continued to grow ahead of the market average, with gross volumes up 3.2 per cent in 2016 compared to the 1.3 per cent market estimate by research firm Drewry.
“While 2017 is expected to be another challenging year for global trade, we have made an encouraging start to the year and we expect to continue to deliver ahead-of-market volume growth. Our aim is to continue our disciplined approach to capital allocation in markets with strong growth potential while adding complementary or related services to further diversify and strengthen our business,” Bin Sulayem said in a statement to Nasdaq Dubai where DP World is listed.
The board of DP World recommended increasing dividends by 26.7 per cent to $315.4 million or 38 US cents per share (from 30 cents per share in 2015).
DP World said it expects capital expenditure in 2017 to be at $1.2 billion, with investment planned into the UAE (at Jebel Ali), Canada, Somaliland, Senegal, and the UK’s London Gateway. The figure is marginally lower than the nearly $1.3 billion in capital expenditure across the company’s portfolio in 2016.
During the year, DP World saw strong cash generation, with cash from operating activities reaching $2 billion, up from $1.93 billion in 2015.
Form an operational perspective, the company acquired an additional 23.9 per cent stake in Pusan Newport Company in South Korea to increase its holding there to 66 per cent.
DP World’s share prices rose 0.51 per cent on Monday to reach $21.6.