Dubai-based ports operator DP World said it is "encouraged by the start to trading in 2021" and remains positive about the medium to long-term outlook despite a slide in 2020 profit amid pandemic challenges.
Profit attributable to owners after separately disclosed items, dropped 28.8 per cent to $846 million for the financial year ending December 31, 2020, from $1.19 billion in 2019, the company said in a statement on Thursday.
Revenue, however, grew 11 per cent to $8.53bn on a reported basis for the year. Acquisitions and full-year contribution from oil services company Topaz Energy & Marine and UK transport and logistics company P&O Ferries, drove revenue higher.
DP World’s maritime and logistics revenue increased by 33.2 per cent last year.
“We are delighted that our portfolio has performed better than expected and, in a year like no other, to deliver flat volumes, stable Ebitda [earnings before interest, taxes, depreciation and amortisation] and free cashflow growth is a remarkable achievement,” Sultan Bin Sulayem, group chairman and chief executive of DP World, said.
Global trade declined 9 per cent last year as the industry experienced major disruption in the first six months when movement restrictions to stem the spread of the pandemic were at their peak, a United Nations Conference on Trade and Development report said last month.
This is the biggest fall since 2009, when trade fell by 22 per cent. A recovery, however, began in the second half, with trade in the fourth quarter increasing by 8 per cent on the third quarter.
Global container volumes are estimated to have fallen by 2.1 per cent in 2020, according to consultancy Drewry Global. It estimates growth of 8.9 per cent in 2021 and 5 per cent in 2022.
DP World’s volumes have outperformed the industry by delivering 0.2 per cent growth in 2020, Mr Bin Sulayem said during a call with media and analysts. The company registered a growth in volumes in Australia, India, Africa and Brazil.
“The container industry has outperformed the gloomy double-digit decline that some predicted at the start of the pandemic, which illustrates the resilience of the market and DP World has outperformed the industry once again.”
DP World maintained a cautious outlook to global trade and said that although the “pandemic, geopolitics and trade war continues to cause some uncertainty, the medium to long-term outlook remains positive”.
We are delighted that our portfolio has performed better than expected and, in a year like no other, to deliver flat volumes, stable EBITDA and free cashflow growth is a remarkable achievement
Mr Bin Sulayem said the company accelerated digital investments, which allowed it "to take advantage of the new way of doing business".
Cash from operating activities increased 17.8 per cent to $2.9bn in 2020 as the ports operator focused on managing costs to preserve cash.
Meanwhile, free cash flow (post cash tax and maintenance capital expenditure) improved 19 per cent to $2.45bn.
The company said capital expenditure reached $1.07bn in 2020. Capex this year will be slightly higher at $1.2bn with investments planned in the UAE, Jeddah in Saudi Arabia, London Gateway in the UK, Berbera in Somaliland, Sokhna in Egypt and Caucedo in the Dominican Republic.
DP World expects contributions from these additional capacities to start having an impact from 2023 to 2025, Yuvraj Narayan, group chief financial, strategy and business officer, DP World, said during the call.
“Looking ahead, we will continue to be selective on new investments and focus on the integration of our recent acquisitions to drive synergies, containing costs to protect profitability and managing growth capex to preserve cash flow,” Mr Bin Sulayem said.
DP World said its ports and terminals investment platform with CDPQ, a Canadian asset management firm that oversees Quebec’s public pension fund, expanded to $8.2bn from $3.7bn and has invested in 10 port terminals globally.
The operator’s ports and terminals subsidiary announced new investment in Senegal, Angola and Indonesia, while its logistics and maritime investment included acquisitions of India's Transworld, feeder shipping operations of Shreyas Shipping and Logistics and South Korea’s Unico Logistics.
DP World has also submitted a tender for the privatisation of Israel’s Haifa Port.
"Israel is in a strategic place between Europe and many places where we have business. It has good infrastructure and policies that encourage investment," Mr Bin Sulayem said.
He added that the ports operator is also pursuing opportunities in Israel's industrial and logistics parks.
UAE currency: the story behind the money in your pockets
The five pillars of Islam
1. Fasting
2. Prayer
3. Hajj
4. Shahada
5. Zakat
Company%20profile
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Meydan racecard:
6.30pm: Handicap | US$135,000 (Dirt) | 1,400 metres
7.05pm: Handicap | $135,000 (Turf) | 1,200m
7.40pm: Dubai Millennium Stakes | Group 3 | $200,000 (T) | 2,000m
8.15pm: UAE Oaks | Group 3 | $250,000 (D) | 1,900m
8.50pm: Zabeel Mile | Group 2 | $250,000 (T) | 1,600m
9.20pm: Handicap | $135,000 (T) | 1,600m
WORLD CUP SQUAD
Dimuth Karunaratne (Captain), Angelo Mathews, Avishka Fernando, Lahiru Thirimanne, Kusal Mendis (wk), Kusal Perera (wk), Dhananjaya de Silva, Thisara Perera, Isuru Udana, Jeffrey Vandersay, Jeevan Mendis, Milinda Siriwardana, Lasith Malinga, Suranga Lakmal, Nuwan Pradeep
More from Neighbourhood Watch:
The Details
Kabir Singh
Produced by: Cinestaan Studios, T-Series
Directed by: Sandeep Reddy Vanga
Starring: Shahid Kapoor, Kiara Advani, Suresh Oberoi, Soham Majumdar, Arjun Pahwa
Rating: 2.5/5
Fifa Club World Cup:
When: December 6-16
Where: Games to take place at Zayed Sports City in Abu Dhabi and Hazza bin Zayed Stadium in Al Ain
Defending champions: Real Madrid
UAE currency: the story behind the money in your pockets
How to help
Donate towards food and a flight by transferring money to this registered charity's account.
Account name: Dar Al Ber Society
Account Number: 11 530 734
IBAN: AE 9805 000 000 000 11 530 734
Bank Name: Abu Dhabi Islamic Bank
To ensure that your contribution reaches these people, please send the copy of deposit/transfer receipt to: juhi.khan@daralber.ae
Killing of Qassem Suleimani
More from Rashmee Roshan Lall
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WHAT IS A BLACK HOLE?
1. Black holes are objects whose gravity is so strong not even light can escape their pull
2. They can be created when massive stars collapse under their own weight
3. Large black holes can also be formed when smaller ones collide and merge
4. The biggest black holes lurk at the centre of many galaxies, including our own
5. Astronomers believe that when the universe was very young, black holes affected how galaxies formed
UAE currency: the story behind the money in your pockets
About Okadoc
Date started: Okadoc, 2018
Founder/CEO: Fodhil Benturquia
Based: Dubai, UAE
Sector: Healthcare
Size: (employees/revenue) 40 staff; undisclosed revenues recording “double-digit” monthly growth
Funding stage: Series B fundraising round to conclude in February
Investors: Undisclosed
What are the GCSE grade equivalents?
- Grade 9 = above an A*
- Grade 8 = between grades A* and A
- Grade 7 = grade A
- Grade 6 = just above a grade B
- Grade 5 = between grades B and C
- Grade 4 = grade C
- Grade 3 = between grades D and E
- Grade 2 = between grades E and F
- Grade 1 = between grades F and G
Red flags
- Promises of high, fixed or 'guaranteed' returns.
- Unregulated structured products or complex investments often used to bypass traditional safeguards.
- Lack of clear information, vague language, no access to audited financials.
- Overseas companies targeting investors in other jurisdictions - this can make legal recovery difficult.
- Hard-selling tactics - creating urgency, offering 'exclusive' deals.
Courtesy: Carol Glynn, founder of Conscious Finance Coaching
The specs
Engine: 1.6-litre 4-cyl turbo and dual electric motors
Power: 300hp at 6,000rpm
Torque: 520Nm at 1,500-3,000rpm
Transmission: 8-speed auto
Fuel consumption: 8.0L/100km
Price: from Dh199,900
On sale: now
Jetour T1 specs
Engine: 2-litre turbocharged
Power: 254hp
Torque: 390Nm
Price: From Dh126,000
Available: Now
The design
The protective shell is covered in solar panels to make use of light and produce energy. This will drastically reduce energy loss.
More than 80 per cent of the energy consumed by the French pavilion will be produced by the sun.
The architecture will control light sources to provide a highly insulated and airtight building.
The forecourt is protected from the sun and the plants will refresh the inner spaces.
A micro water treatment plant will recycle used water to supply the irrigation for the plants and to flush the toilets. This will reduce the pavilion’s need for fresh water by 30 per cent.
Energy-saving equipment will be used for all lighting and projections.
Beyond its use for the expo, the pavilion will be easy to dismantle and reuse the material.
Some elements of the metal frame can be prefabricated in a factory.
From architects to sound technicians and construction companies, a group of experts from 10 companies have created the pavilion.
Work will begin in May; the first stone will be laid in Dubai in the second quarter of 2019.
Construction of the pavilion will take 17 months from May 2019 to September 2020.
THE SPECS
Engine: 2.0-litre 4-cylinder turbo
Power: 275hp at 6,600rpm
Torque: 353Nm from 1,450-4,700rpm
Transmission: 8-speed dual-clutch auto
Top speed: 250kph
Fuel consumption: 6.8L/100km
On sale: Now
Price: Dh146,999
Bahrain%20GP
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Dr Afridi's warning signs of digital addiction
Spending an excessive amount of time on the phone.
Neglecting personal, social, or academic responsibilities.
Losing interest in other activities or hobbies that were once enjoyed.
Having withdrawal symptoms like feeling anxious, restless, or upset when the technology is not available.
Experiencing sleep disturbances or changes in sleep patterns.
What are the guidelines?
Under 18 months: Avoid screen time altogether, except for video chatting with family.
Aged 18-24 months: If screens are introduced, it should be high-quality content watched with a caregiver to help the child understand what they are seeing.
Aged 2-5 years: Limit to one-hour per day of high-quality programming, with co-viewing whenever possible.
Aged 6-12 years: Set consistent limits on screen time to ensure it does not interfere with sleep, physical activity, or social interactions.
Teenagers: Encourage a balanced approach – screens should not replace sleep, exercise, or face-to-face socialisation.
Source: American Paediatric Association
