TIDMDPW
RNS Number : 9975M
DP World Limited
25 August 2011
DP WORLD LIMITED ANNOUNCEMENT OF INTERIM RESULTS
For the six months ended 30 June 2011
Reported Results (1) before
separately disclosed items Underlying change
(2) USD million H1 2011 H1 2010 % change (3)
Gross throughput (TEU '000) 26,219 23,650 11% -
Consolidated throughput (TEU
'000) 13,470 13,160 2% 10%
Revenue 1,502 1,455 3% 17%
Adjusted EBITDA[1] 645 580 11% 22%
Adjusted EBITDA margin 42.9% 39.9% - 41.6%
Profit for the period 281 206 36% 32%
Profit for the period
attributable to owners of
the company 246 164 50% 48%
Earnings per share (cents) 30 cents 20 cents 50% 48%
----------------------------- -------- -------- -------- -----------------
Statutory Results
after separately disclosed items (4)
USD million H1 2011 H1 2010
Profit for the period 741 219
Profit for the period attributable to equity holders 705 177
Earnings per Share (cents) 85 cents 21 cents
----------------------------------------------------- -------- --------
(1) Reported results before separately disclosed items include
revenue for the Australia terminals until 11 March 2011 and share
of profit from those terminals from 12 March 2011.
(2) Before separately disclosed items primarily excludes
non-recurring items such as the profit from the monetization of the
Australia terminals which is included as a separately disclosed
item.
(3) The underlying change ex Australia deconsolidation shows
what growth rates and margin would have been had the five terminals
in Australia continued to be consolidated in DP World's accounts
from 12 March 2011 and allows for a more accurate comparison to the
prior period
(4) The statutory results include separately disclosed items
which comprise the profit from the Australia transaction in March
2011 and certain other non-recurring items. Further details can be
found in Note 5 of the audited accounts.
Dubai, United Arab Emirates, 25 August, 2011: - DP World today
announces financial results from its global portfolio of marine
terminals for the first six months of 2011 reporting profit after
tax before separately disclosed items of $281 million, 36% ahead of
the same period last year.
Chief Executive, Mohammed Sharaf commented;
"DP World has had an excellent start to the year with gross
volume growth 11% ahead of the prior period, improved revenue
generation, a continued focus on cost management and improved
terminal efficiencies resulting in EBITDA of $645 million and
improved EBITDA margin ahead of expectations at 42.9%.
"Profit for the six month period before separately disclosed
items was $281 million, close to profit levels last seen at our
peak in 2008 as our container terminals have become more profitable
following initiatives implemented as a result of the 2009 downturn.
Our global portfolio, focused on both origin and destination cargo
and in the emerging markets, is now more robust and better
positioned to deliver profitable growth.
"We have continued to expand our global capacity, either through
continued investment in new or existing terminals or through
incremental investment focused on delivering greater efficiencies
for our customers.
"Gross cash generation increased to $570 million in the first
six months of the year with net debt reduced to $3.7 billion,
partly as a result of our good financial performance and partly as
a result of the monetization of part of our Australia operations.
This has resulted in leverage[2] of 2.9 times and provides a solid
platform for investment in the future growth of our business.
"Historically the second half of the year has been stronger than
the first half. However, as we said in our update in July, there is
uncertainty around the outlook for the global economy making it
more challenging to forecast how global trade will develop in the
second half of the year.
"The impact of this uncertainty has not, as yet, been reflected
in the markets in which we operate and, with our focus on the more
resilient emerging markets, we still expect to deliver full year
results in line with expectations."
The Operating and Financial Review and Financial Statements
follow from page 3.
Investor Inquiries Media Inquiries
Fiona Piper, DP World Limited Sarah Lockie / Natasha Bukhari
Mobile: +447919175602 DP World Limited
Email: Fiona.piper@dpworld.com Telephone: +971 4 8080 1000
Jon Coles/Chris Blundell, Brunswick
Group
Telephone: +44 20 7404 5959
Analyst/Investor Conference Call
There will be conference calls for debt and equity analysts and
investors;
1) At 1200 noon Dubai time (9.00am London) on Thursday 25 August
2011 with CEO Mohammed Sharaf and CFO Yuvraj Narayan
2) A playback of the earlier call will be available the
following day. For the dial in details and playback details please
contact investor.relations@dpworld.com.
The presentation accompanying these conference calls will be
available on DP World's website within the investor centre.
www.dpworld.com from 0900 UAE time (0600 London).
Review of Operational and Financial Results
Our financial performance for the six months to 30 June 2011
reflects the continuation of container volume growth across our
global portfolio of maritime terminals, improved revenue generation
and cost management driving EBITDA margin ahead of expectations and
profit close to peak levels last seen in 2008.
On 11 March 2011 DP World and Citi Infrastructure Investors
(CII), together with one of CII's major investors, formed a
strategic partnership to invest in DP World's five container
terminals in Australia. DP World continues to operate and manage
the five marine terminals. The strategic partnership saw DP World
monetise 75% of its shares whilst retaining a 25% shareholding in
the new joint venture.
For the purposes of 2011 financial reporting, our ports in
Australia are included, as in previous years, in the Australia and
Americas region with all five container ports consolidated until 11
March 2011. From 12 March 2011, the five ports are no longer
consolidated in our accounts and are accounted for as joint
ventures and associates.
Our consolidated revenue[3] has benefitted from the inclusion of
a full six months of revenues from Callao (Peru) which opened at
the end of the first half of 2010, offset by the exclusion of
revenue from our five terminals in Australia since 12 March
2011.
As a global business, we are exposed to currency translation on
our reported results. Over the period, the weakening US dollar had
a positive impact on reported EBITDA.
USD millions
before separately disclosed
items Underlying
Full details on page 10 onwards 2011 H1 2010 H1 % change change[4]
Consolidated Throughput (TEU) 13,470 13,160 2% 10%
Revenue 1,502 1,455 3% 17%
Share of profit from JVs and
Associates 74 62 20% 23%
Adjusted EBITDA (including
JVs and Associates) 645 580 11% 22%
Adjusted EBITDA Margin (including
JVs and Associates) 42.9% 39.9% - 41.6%
Profit for the period 281 206 36% 32%
Profit for the period
attributable to owners of the
company 246 164 50% 48%
---------------------------------- -------- -------- --------- -----------
Revenue for our consolidated terminals[5] in the first six
months of 2011 was $1,502 million, or 3% ahead of the prior year.
Had the five terminals in Australia not been deconsolidated from 12
March 2011, revenue growth would have been 17% against a volume
growth of 10%. This increase in revenue ahead of volume growth
reflects the improved revenue generation across our container
terminals and a 10% growth in non-container revenue.
Containerised revenue accounted for 80% of our total revenue and
was $1,199 million for the year or 2% ahead of the prior period.
This relatively low growth reflects the exclusion of the revenue
from the Australia terminals from 12 March 2011. Had those
terminals not been deconsolidated, container revenue growth would
have been 18% against volume growth of 10% driven by a very strong
performance in the Asia Pacific and Indian Subcontinent region and
higher ancillary revenues across our portfolio.
Non-container revenue increased 10% to $303 million and
accounted for 20% of total revenue in the period. This was driven
by growth in the UAE region of 8% as we see greater investment in
infrastructure across the region.
Like for like container revenue[6] at constant currency grew 11%
ahead of volume growth of 8% with container revenue increasing to
$93 per TEU from $90 in the same period last year.
In a growth environment, as we have seen in the first half of
2011, the increase in costs is inevitable as volumes and revenue
grow. However, we have continued to keep a tight control on costs
to ensure that we minimise any increase. In addition, we continue
to focus on improving terminal efficiencies so that we can handle
more containers for the same cost.
Our portfolio of terminals accounted for as joint ventures and
associates reported 20% growth ahead of the prior period to $74
million. In part, this growth was as a result of additional
capacity in Qingdao (China), but the strong growth across Asian
terminals and the continued return to growth from European
terminals also added to this 20% increase.
EBITDA increased 11% to $645 million with EBITDA margin of
42.9%, an improvement from 39.9% in the first half of 2010 and
building on the 2010 full year margin of 40.3%. Excluding the
deconsolidation of Australian terminals EBITDA margin would still
have improved to 41.6% with EBITDA growth of 22%. EBITDA margin
have improved ahead of our expectations as our terminals have been
more successful in generating increased revenue whilst focusing on
managing costs and improving efficiencies.
Like for like EBITDA[7] at constant currency grew 16% ahead of
volume growth of 8% with EBITDA margin of 41.8%.
Profit for the period is 36% ahead of the prior period at $281
million on account of the increase in EBITDA, lower depreciation
and amortisation due to the Australian terminals no longer being
included from 12 March 2011 and a reduction in net finance costs as
a result of the increase in finance income as our cash balances
increased. Like for like profit for the period at constant currency
was 25% ahead of the prior period.
On 11 March 2011 we recognised a gain of $436 million from the
Australian transaction, reflected as a separately disclosed item.
This gain, together with other separately disclosed items, resulted
in a profit after tax for the period of $741 million and earnings
per share of 85 USD cents.
We have continued to adopt a prudent approach to capital
expenditure with $239 million invested over the six month period,
in line with our three year capital expenditure programme. Over 24%
of this is focused on investment in new capacity expansion and 75%
on investment in existing terminals to improve efficiencies and
production, as well as in medium to long-tem revenue generation or
cost saving opportunities.
Callao (Peru) opened at the end of the first half of 2010 and is
already performing above our expectations with Vallarpadam (India)
and Karachi (Pakistan) opening in the first quarter of 2011.
Alongside these investments we have continued to invest in
essential infrastructure at our new development at London Gateway
(UK).
Review of Regional Trading
Europe, Middle East and Africa
USD million
before separately disclosed
items 2011 H1 2010 H1 % Change
Consolidated Throughput (TEU
'000) 9,042 8,422 7%
Revenue 907 854 6%
Profit from JV and Associates 9 2 410%
EBITDA inc JV and Associates 406 400 2%
EBITDA Margin 44.8% 46.8%
------------------------------- -------- -------- ---------
The first half results in the Europe, Middle East and Africa
region were mixed, with the strong volume growth in the UAE and
Africa translating into EBITDA growth, somewhat mitigated by the
weaker performance across the Middle East (excluding UAE).
Terminals that contributed to consolidated revenue for the
region experienced an increase in revenue to $907 million as a
result of the 7% volume growth led by the UAE and Africa.
Container revenue reported a growth of 7% during the period, in
line with volume growth, as price increases were offset by an
increase in slightly lower revenue transhipment cargo as a result
of the unrest across the Middle East. Non-container revenue
reported a small increase of 3% as the 8% increase in the UAE
region was offset by the loss of revenues in some Middle East
terminals due to the unrest in the region.
Like for like container revenue at constant currency grew 6%
against a volume growth of 7% as revenue per TEU saw a small
decline due to the change in cargo mix.
Our share of profit from joint ventures and associates increased
to $9 million as we saw a continuation of the rebound of container
volumes across Europe where the majority of the joint ventures in
this region are located.
EBITDA improved 2% to $406 million with margin of 44.8%. Further
EBITDA and EBITDA margin improvement was impacted by the weaker
performance in the Middle East (ex UAE) terminals and the change in
cargo mix. Like for like EBITDA growth at constant currency was 1%
with EBITDA margin at 45.1%.
The UAE reported an increase in container volumes of 11% to 6.1
million TEU with an increase in associated container revenue of
13%. In addition, non-container revenue performed better than
expected growing 8% as investment in regional infrastructure led to
an increase in the import of steel and timber for construction.
Total revenue in the UAE was $455 million.
During the first six months of the year, $171 million of our
capital expenditure was spent in the Europe, Middle East and Africa
region with a focus on the construction of essential infrastructure
(including dredging and building the quay wall) at London Gateway
(UK) and improving efficiencies in existing terminals, notably in
Southampton (UK) and Dakar (Senegal).
Asia Pacific and Indian Subcontinent
USD million
before separately disclosed
items 2011 H1 2010 H1 % Change
Consolidated Throughput (TEU
'000) 2,774 2,676 4%
Revenue 249 212 17%
Profit from JV and Associates 55 46 20%
EBITDA inc JV and Associates 158 111 43%
EBITDA Margin 63.5% 52.1%
------------------------------- -------- -------- ---------
The Asia Pacific and Indian Subcontinent region results were
positively impacted from the opening of our new terminal in
Vallarpadam, Cochin (India) which replaced the existing old Cochin
terminal, the major expansion in Karachi (Pakistan) and Qingdao
(China).
Terminals that contributed to consolidated revenue for the
region experienced an increase in revenue to $249 million as a
result of the 4% increase in volumes and strong revenue growth.
Container revenue reported a growth of 17% in part due to
continued ancillary container revenue from Karachi (Pakistan), and
a 17% increase in non-container revenue following a greater
contribution from our container rail business in India.
Like for like container revenue growth at constant currency was
17% against a volume growth of 4% with container revenue per TEU
increasing 13%.
Our Asia Pacific and Indian Subcontinent region contributes the
majority of our share of profit from joint ventures and associates
and in the first six months of the year reported $55 million profit
against $46 million for the same period last year. Whilst the
additional capacity in Qingdao (China) helped improve profit, all
our joint venture terminals in the region delivered good growth
following strong volume growth across the region.
EBITDA increased 43% to $158 million with significant margin
improvement to 63.5%. This increase in EBITDA and EBITDA margin
reflects the strong growth in ancillary container revenue and
excellent cost management in the region, as well as the 20% growth
in profit from joint ventures and associates. Like for like EBITDA
growth at constant currency was 42% and EBITDA margin at 63.4%.
$6 million of our capital expenditure was spent in the region
during the six months with the majority being invested in
Vallarpadam and Karachi which both opened new capacity in the first
quarter of this year.
Australia and Americas
On 11 March 2011 DP World and Citi Infrastructure Investors
(CII), together with one of CII's major investors, formed a
strategic partnership to invest in DP World's five container
terminals in Australia. DP World continues to operate and manage
the five marine terminals. The strategic partnership saw DP World
monetise 75% of its shares whilst retaining a 25% shareholding in
the new joint venture.
For the purposes of 2011 financial reporting, our ports in
Australia are included, as in previous years, in the Australia and
Americas region with all five container ports consolidated until 11
March 2011. From 12 March 2011, the five ports are no longer
consolidated in our accounts and are accounted for as joint
ventures and associates.
USD million
before separately disclosed Underlying
items 2011 H1 2010 H1 % Change change[8]
Consolidated Throughput
(TEU '000) 1,654 2,062 -20% 30%
Revenue 347 389 -11% 39%
Profit from JV and Associates 11 14 -27% -12%
EBITDA inc JV and Associates 121 107 13% 70%
EBITDA Margin 34.8% 27.6% 33.7%
------------------------------- -------- -------- --------- -----------
The Australia and Americas region has continued the excellent
year it had in 2010 delivering growth over the prior period. Our
new development in Callao (Peru) which opened at the end of the
first half of 2010 has delivered well beyond our expectations. The
reported results have been impacted by the deconsolidation of the
five terminals in Australia but mitigated by the additional revenue
from the newly opened terminal in Callao (Peru) along with some
benefit from the weakening US dollar.
Terminals that contributed to consolidated revenue experienced a
decrease in volume of 20% against the same period last year and a
decline in revenue of 11% to $347 million. These declines in volume
and revenue relate to the change in the accounting treatment for
our five terminals in Australia which, from the 12 March 2011, no
longer contribute to consolidated financial results.
Had our five terminals in Australia not been deconsolidated from
12 March 2011, revenue growth would have been 39% higher than the
prior period, driven by a volume growth of 30%. Container revenue
increased 40% to $466 million driven by this 30% increase in
container volumes as Callao (Peru) contributed for the full period
and the region saw strong volume growth alongside a 35% increase in
non-container revenue.
Like for like container revenue at constant currency[9] was 19%
higher as a result of the 15% increase in volume in the region and
a 4% increase in container revenue per TEU.
Our reported share of profit from joint ventures and associates
was $11 million, lower than the same period last year as the
inclusion of new profit from our joint venture in Australia was
offset by additional interest expense. In addition, DP World sold
its remaining shareholding in P&O Trans Australia (POTA). POTA
was accounted for as a joint venture and associate until 17 April
2011.
Adjusted EBITDA was $121 million or 13% ahead of the prior
period with EBITDA margin of 34.8%. This increase in EBITDA was
partly as a result of better results across all our terminals in
the region and the addition of a full six months of Callao (Peru)
to this portfolio as well as the addition of the management fee
from the Australian terminals from 12 March 2011. Had the 5
terminals in Australia not been deconsolidated, EBITDA would have
been 70% ahead of the prior period and EBITDA margin would have
been 33.7%.
Like for like EBITDA at constant currency increased 41% and
EBITDA margin would have been 32.6% and still ahead of the prior
period.
$62 million of our capital expenditure was spent in the region
primarily improving efficiencies at existing operations in the
region.
Net finance costs
Net finance costs of $128 million (before separately disclosed
items) are lower than the same period last year as the proceeds
from the Australia transaction, received on 12 March 2011,
increased cash balances to $4.1 billion and associated finance
income increased to $67 million.
Finance expenses increased slightly to $195 million as total
debt increased from $7.8 billion to $7.9 billion as Cochin (India),
Karachi (Pakistan) and Dakar (Senegal) refinanced or increased debt
in relation to the new expansions which opened in early 2011.
Interest cover improved to 5 times[10].
Profit attributable to non-controlling interests (minority
interest)
Profit attributable to non-controlling interests (minority
interest) is lower than the prior period at $36 million reflecting
the change in accounting at Sydney and Adelaide (Australia) from 12
March 2011, when we stopped accounting for the Australia terminals
as consolidated terminals and therefore no longer include Adelaide
and Sydney (Australia) within minority interests.
Separately disclosed items
In the first six months of the year DP World had $460 million of
separately disclosed items primarily related to the $436 million
profit (net of tax) arising from the monetisation of the Australia
terminals on 11 March 2011.
Earnings per Share (EPS)
Earnings per share, which is reported after separately disclosed
items, increased to 85 cents as a result of profit after tax after
separately disclosed items attributable to equity holders
increasing to $705 million following the net gain from the
Australia transaction.
Earnings per share before separately disclosed items was 30
cents per share.
Capital Expenditure
During the first six months of this year we have invested $239
million in our portfolio of terminals. We have completed our
terminal at Vallarpadam (India) and the major expansion in Karachi
(Pakistan) both of which opened in the first quarter of 2011. We
have also continued to invest in essential infrastructure at our
new development at London Gateway (UK). Alongside these new
developments we have continued to invest in improving terminal
efficiency in many of our existing terminals including in Dakar
(Senegal), Buenos Aries (Argentina), Sokhna (Egypt) and Southampton
(UK).
We remain fully committed to meeting the long-term market demand
for capacity expansion, investing in new capacity in line with
market demand. We maintain our guidance for capital expenditure of
$2.5 billion between 2010 and 2012 inclusive, of which we have
spent $1.2 billion to date.
Balance Sheet
Total assets were $19.5 billion as of 30 June 2011, broadly in
line with 31 December 2011, total equity increased to $8.8 billion
from $8.5 billion at year end 2010 as a result of higher retained
earnings and profit partly offset by a decrease in the translation
reserve.
Investment in equity-accounted investees
The group's investment in net assets of equity accounted
associates and joint ventures as at 30 June 2010 increased to $3.8
billion. This increase is primarily as a result our Australian
terminals being accounted for as joint ventures and associates
since 12 March 2011.
Cash flow
Gross cash generation from operating activities was $570
million, 9% ahead of the same period last year as a result of the
better performance from our terminals. Net cash from investing
activities increased to $1,352 million which includes the proceeds
from the monetization of the Australia assets. The net increase in
cash and cash equivalents was $1,520 million in the first six
months of the year.
Net Debt
As at 30 June 2011 our net debt was $3,748 million. Net debt is
significantly lower than prior the period as the proceeds from the
Australia transaction, which were received on 11 March 2011,
increased bank balances and cash to $4,116 million. Gross debt
increased from $7.8 billion to $7.9 billion as subsidiary debt
increased in Cochin (India) and Dakar (Senegal).
Long-term corporate bonds totalled $3.25 billion made up of
$1.75 billion 30 year unsecured MTN due 2037 and $1.5 billion
10-year unsecured sukuk due 2017. In addition we have a fully drawn
$3 billion syndicate loan facility due in October 2012 and $1.65
billion of debt at the subsidiary level. As at 30 June 2011
leverage (net debt to EBITDA[11]) was 2.9 times.
Our first major debt maturity is towards the end of October
2012. With $4.1 billion cash on our balance sheet as at 30 June
2011, we are well positioned to manage this maturity and continue
to be in a strong flexible position around how we manage our
balance sheet in the future.
Dividends
It is our current dividend policy that not less than 20% of our
profit for the year attributable to owners of the Company (after
separately disclosed items) will be distributed as dividends.
Dividends in respect of the full year 2011 will be proposed with
the preliminary results for the full year 2011 in March 2012.
Mohammed Sharaf Yuvraj Narayan
Chief Executive Officer Chief Financial Officer
DP World Limited and its subsidiaries
Condensed consolidated income statement
For the six months ended 30 June 2011
Period ended 30 June 2011 Period ended 30 June 2010
----------------------- ------ ------------------------------------------ --------------------------------------------
Before
separately Separately Before Separately
disclosed disclosed separately disclosed
items items (Note Total disclosed items (Note Total
USD'000 5) USD'000 USD'000 items USD'000 5) USD'000 USD'000
Notes (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited)
----------------------- ------ ------------- ------------ ------------- -------------- ------------ --------------
Revenue from
operations 1,502,052 - 1,502,052 1,454,531 69,791 1,524,322
----------------------- ------ ------------- ------------ ------------- -------------- ------------ --------------
Cost of sales (999,778) - (999,778) (1,009,597) (69,791) (1,079,388)
----------------------- ------ ------------- ------------ ------------- -------------- ------------ --------------
------------ --------- ------------ ------------- --------- -------------
----------------------- ------ ------------- ------------ ------------- -------------- ------------ --------------
Gross profit 502,274 - 502,274 444,934 - 444,934
----------------------- ------ ------------- ------------ ------------- -------------- ------------ --------------
General and
administrative
expenses (149,921) (14,974) (164,895) (155,077) (3,500) (158,577)
----------------------- ------ ------------- ------------ ------------- -------------- ------------ --------------
Other income 7,364 - 7,364 11,218 5,591 16,809
----------------------- ------ ------------- ------------ ------------- -------------- ------------ --------------
Share of profit/
(loss) of
equity-accounted
investees (net of
tax) 7 74,095 - 74,095 61,912 (2,900) 59,012
----------------------- ------ ------------- ------------ ------------- -------------- ------------ --------------
Profit on sale and
termination of
business (net of
tax) - 485,305 485,305 - 13,542 13,542
----------------------- ------ ------------- ------------ ------------- -------------- ------------ --------------
---------- --------- ---------- ---------- --------- -----------
----------------------- ------ ------------- ------------ ------------- -------------- ------------ --------------
Results from operating
activities 433,812 470,331 904,143 362,987 12,733 375,720
----------------------- ------ ------------- ------------ ------------- -------------- ------------ --------------
---------- --------- ---------- ---------- --------- -----------
----------------------- ------ ------------- ------------ ------------- -------------- ------------ --------------
Finance income 67,389 - 67,389 46,504 - 46,504
----------------------- ------ ------------- ------------ ------------- -------------- ------------ --------------
Finance costs (195,461) (10,770) (206,231) (190,915) - (190,915)
----------------------- ------ ------------- ------------ ------------- -------------- ------------ --------------
----------- --------- ----------- ----------- --------- -----------
----------------------- ------ ------------- ------------ ------------- -------------- ------------ --------------
Net finance costs (128,072) (10,770) (138,842) (144,411) - (144,411)
----------------------- ------ ------------- ------------ ------------- -------------- ------------ --------------
----------- --------- ----------- ----------- --------- -----------
----------------------- ------ ------------- ------------ ------------- -------------- ------------ --------------
Profit before tax 305,740 459,561 765,301 218,576 12,733 231,309
----------------------- ------ ------------- ------------ ------------- -------------- ------------ --------------
Income tax 8 (24,426) - (24,426) (12,088) - (12,088)
----------------------- ------ ------------- ------------ ------------- -------------- ------------ --------------
---------- --------- ---------- ---------- --------- -----------
----------------------- ------ ------------- ------------ ------------- -------------- ------------ --------------
Profit for the period 281,314 459,561 740,875 206,488 12,733 219,221
----------------------- ------ ------------- ------------ ------------- -------------- ------------ --------------
---------- --------- ---------- ---------- --------- -----------
----------------------- ------ ------------- ------------ ------------- -------------- ------------ --------------
Profit attributable
to:
----------------------- ------ ------------- ------------ ------------- -------------- ------------ --------------
Owners of the Company 245,719 459,561 705,280 163,876 12,733 176,609
----------------------- ------ ------------- ------------ ------------- -------------- ------------ --------------
Non-controlling
interests 35,595 - 35,595 42,612 - 42,612
----------------------- ------ ------------- ------------ ------------- -------------- ------------ --------------
---------- ---------- ---------- ----------- --------- -----------
----------------------- ------ ------------- ------------ ------------- -------------- ------------ --------------
Profit for the period 281,314 459,561 740,875 206,488 12,733 219,221
----------------------- ------ ------------- ------------ ------------- -------------- ------------ --------------
====== ====== ====== ====== ==== =====
----------------------- ------ ------------- ------------ ------------- -------------- ------------ --------------
Earnings per share
----------------------- ------ ------------- ------------ ------------- -------------- ------------ --------------
Basic and
diluted
earnings
per share
- US cents
(restated) 13 84.97 21.28
----------------------- ------ ------------- ------------ ------------- -------------- ------------ --------------
==== ====
----------------------- ------ ------------- ------------ ------------- -------------- ------------ --------------
The accompanying notes form an integral part of these condensed
consolidated interim financial statements.
DP World Limited and its subsidiaries
Condensed consolidated statement of comprehensive income
For the six months ended 30 June 2011
30 June 30 June
2011 2010
------------------------------------------ ------ ------------ ------------
Notes USD'000 USD'000
------------------------------------------ ------ ------------ ------------
(Unaudited) (Unaudited)
------------------------------------------ ------ ------------ ------------
Profit for the period 740,875 219,221
------------------------------------------ ------ ------------ ------------
----------- -----------
------------------------------------------ ------ ------------ ------------
Other comprehensive income
------------------------------------------ ------ ------------ ------------
Foreign exchange translation differences
for foreign
operations * 201,157 (532,027)
------------------------------------------ ------ ------------ ------------
Foreign exchange reserve recycled
to the condensed
consolidated income statement on sale
of business 5 (425,773) -
------------------------------------------ ------ ------------ ------------
Effective portion of net changes in
fair value of cash
flow hedges 893 (21,988)
------------------------------------------ ------ ------------ ------------
Net change in fair value of available
for sale
financial assets 1,883 (1,282)
------------------------------------------ ------ ------------ ------------
Net change in fair value of cash flow
hedges
recycled to condensed consolidated
income statement - 4,000
------------------------------------------ ------ ------------ ------------
Share in other comprehensive income
of
equity-accounted investees 970 -
------------------------------------------ ------ ------------ ------------
Defined benefit plan actuarial losses (1,617) (14,171)
------------------------------------------ ------ ------------ ------------
Income tax on other comprehensive
income:
------------------------------------------ ------ ------------ ------------
Defined benefit plan actuarial (losses)/
gains (647) 1,200
------------------------------------------ ------ ------------ ------------
Fair value of cash flow hedges 2,263 -
------------------------------------------ ------ ------------ ------------
----------- -----------
------------------------------------------ ------ ------------ ------------
Other comprehensive income for the
period,
net of income tax (220,871) (564,268)
------------------------------------------ ------ ------------ ------------
----------- -----------
------------------------------------------ ------ ------------ ------------
Total comprehensive income attributable
to:
------------------------------------------ ------ ------------ ------------
Owners of the Company 474,141 (348,551)
------------------------------------------ ------ ------------ ------------
Non-controlling interests 45,863 3,504
------------------------------------------ ------ ------------ ------------
----------- -----------
------------------------------------------ ------ ------------ ------------
520,004 (345,047)
------------------------------------------ ------ ------------ ------------
====== ======
------------------------------------------ ------ ------------ ------------
* This includes a significant portion of foreign exchange
translation differences arising from the translation of goodwill
and purchase price adjustments which are denominated in foreign
currencies at the Group level. Furthermore, the translation
differences arising on account of translation of the financial
statements of foreign operations whose functional currencies are
different from that of the Group's presentation currency on group
consolidation are also reflected here. There are no differences on
translation from functional to presentation currency as the
Company's functional currency is currently pegged to the
presentation currency.
DP World Limited and its subsidiaries
Condensed consolidated statement of financial position
As at 30 June 2011
31 December
30 June 2011 2010
----------------------------------- ------ --------------- ----------------
USD'000 USD'000
----------------------------------- ------ --------------- ----------------
Notes (Unaudited) (Audited)
----------------------------------- ------ --------------- ----------------
Assets
----------------------------------- ------ --------------- ----------------
Non-current assets
----------------------------------- ------ --------------- ----------------
Property, plant and equipment 9 5,206,280 5,086,217
----------------------------------- ------ --------------- ----------------
Goodwill 10 1,702,274 1,670,301
----------------------------------- ------ --------------- ----------------
Port concession rights 10 3,559,876 3,577,813
----------------------------------- ------ --------------- ----------------
Investment in equity-accounted
investees 7 3,753,495 3,474,113
----------------------------------- ------ --------------- ----------------
Deferred tax assets 112,137 86,385
----------------------------------- ------ --------------- ----------------
Other investments 66,521 65,868
----------------------------------- ------ --------------- ----------------
Accounts receivable and
prepayments 215,955 88,378
----------------------------------- ------ --------------- ----------------
-------------- ---------------
----------------------------------- ------ --------------- ----------------
Total non-current assets 14,616,538 14,049,075
----------------------------------- ------ --------------- ----------------
-------------- ---------------
----------------------------------- ------ --------------- ----------------
Current assets
----------------------------------- ------ --------------- ----------------
Inventories 56,991 52,797
----------------------------------- ------ --------------- ----------------
Accounts receivable and
prepayments 672,420 653,216
----------------------------------- ------ --------------- ----------------
Bank balances and cash 11 4,115,910 2,519,616
----------------------------------- ------ --------------- ----------------
Assets held for sale 12 12,306 2,084,840
----------------------------------- ------ --------------- ----------------
------------- --------------
----------------------------------- ------ --------------- ----------------
Total current assets 4,857,627 5,310,469
----------------------------------- ------ --------------- ----------------
-------------- ---------------
----------------------------------- ------ --------------- ----------------
Total assets 19,474,165 19,359,544
----------------------------------- ------ --------------- ----------------
======== ========
----------------------------------- ------ --------------- ----------------
DP World Limited and its subsidiaries
Condensed consolidated statement of financial position
(continued)
As at 30 June 2011
30 June 31 December
2011 2010
----------------------------------- ------ --------------- ----------------
USD'000 USD'000
----------------------------------- ------ --------------- ----------------
Notes (Unaudited) (Audited)
----------------------------------- ------ --------------- ----------------
Equity
----------------------------------- ------ --------------- ----------------
Share capital 13 1,660,000 1,660,000
----------------------------------- ------ --------------- ----------------
Share premium 2,472,655 2,472,655
----------------------------------- ------ --------------- ----------------
Shareholders' reserve 2,000,000 2,000,000
----------------------------------- ------ --------------- ----------------
Retained earnings 2,386,011 1,823,491
----------------------------------- ------ --------------- ----------------
Hedging and other reserves (62,456) (64,658)
----------------------------------- ------ --------------- ----------------
Actuarial reserve (251,640) (249,700)
----------------------------------- ------ --------------- ----------------
Translation reserve (193,529) 40,074
----------------------------------- ------ --------------- ----------------
------------ --------------
----------------------------------- ------ --------------- ----------------
Total equity attributable to
owners of the Company 8,011,041 7,681,862
----------------------------------- ------ --------------- ----------------
Non-controlling interests 775,315 814,064
----------------------------------- ------ --------------- ----------------
------------ --------------
----------------------------------- ------ --------------- ----------------
Total equity 8,786,356 8,495,926
----------------------------------- ------ --------------- ----------------
------------ --------------
----------------------------------- ------ --------------- ----------------
Liabilities
----------------------------------- ------ --------------- ----------------
Non-current liabilities
----------------------------------- ------ --------------- ----------------
Deferred tax liabilities 1,134,764 1,107,273
----------------------------------- ------ --------------- ----------------
Employees' end of service benefits 47,203 45,988
----------------------------------- ------ --------------- ----------------
Pension and post-employment
benefits 170,420 174,900
----------------------------------- ------ --------------- ----------------
Interest bearing loans and
borrowings 15 7,711,759 7,420,299
----------------------------------- ------ --------------- ----------------
Accounts payable and accruals 401,333 368,152
----------------------------------- ------ --------------- ----------------
------------- --------------
----------------------------------- ------ --------------- ----------------
Total non-current liabilities 9,465,479 9,116,612
----------------------------------- ------ --------------- ----------------
------------- --------------
----------------------------------- ------ --------------- ----------------
Current liabilities
----------------------------------- ------ --------------- ----------------
Income tax liabilities 170,713 84,304
----------------------------------- ------ --------------- ----------------
Bank overdrafts 11 2,596 3,000
----------------------------------- ------ --------------- ----------------
Pension and post-employment
benefits 12,663 14,500
----------------------------------- ------ --------------- ----------------
Interest bearing loans and
borrowings 15 149,756 349,447
----------------------------------- ------ --------------- ----------------
Accounts payable and accruals 886,602 939,562
----------------------------------- ------ --------------- ----------------
Liabilities held for sale 12 - 356,193
----------------------------------- ------ --------------- ----------------
------------- --------------
----------------------------------- ------ --------------- ----------------
Total current liabilities 1,222,330 1,747,006
----------------------------------- ------ --------------- ----------------
------------- ---------------
----------------------------------- ------ --------------- ----------------
Total liabilities 10,687,809 10,863,618
----------------------------------- ------ --------------- ----------------
-------------- ---------------
----------------------------------- ------ --------------- ----------------
Total equity and liabilities 19,474,165 19,359,544
----------------------------------- ------ --------------- ----------------
======== ========
----------------------------------- ------ --------------- ----------------
DP World Limited and its subsidiaries
Condensed consolidated statement of changes in equity
For the six months ended 30 June 2011
Attributable to equity holders of the Company
Hedging and
Share Share Shareholders' Retained other Actuarial Translation Non-controlling Total
capital premium reserve earnings reserves reserve reserve Total interests equity
USD'000 USD'000 USD'000 USD'000 USD'000 USD'000 USD'000 USD'000 USD'000 USD'000
(Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited)
----------------- ------------- ------------- -------------- ------------- ------------ ------------ ------------ ------------- ---------------- ---------------
Balance as at 1
January 2011 1,660,000 2,472,655 2,000,000 1,823,491 (64,658) (249,700) 40,074 7,681,862 814,064 8,495,926
----------------- ------------- ------------- -------------- ------------- ------------ ------------ ------------ ------------- ---------------- ---------------
------------ ------------ ------------ ------------ --------- ---------- --------- ------------ ---------- -------------
----------------- ------------- ------------- -------------- ------------- ------------ ------------ ------------ ------------- ---------------- ---------------
Total
comprehensive
income for the
period:
----------------- ------------- ------------- -------------- ------------- ------------ ------------ ------------ ------------- ---------------- ---------------
Profit for the
period - - - 705,280 - - - 705,280 35,595 740,875
----------------- ------------- ------------- -------------- ------------- ------------ ------------ ------------ ------------- ---------------- ---------------
Total other
comprehensive
income, net of
tax - - - - 4,404 (1,940) (233,603) (231,139) 10,268 (220,871)
----------------- ------------- ------------- -------------- ------------- ------------ ------------ ------------ ------------- ---------------- ---------------
---------- ---------- ---------- ---------- --------- -------- ---------- ---------- --------- -----------
----------------- ------------- ------------- -------------- ------------- ------------ ------------ ------------ ------------- ---------------- ---------------
Total
comprehensive
income for the
period - - - 705,280 4,404 (1,940) (233,603) 474,141 45,863 520,004
----------------- ------------- ------------- -------------- ------------- ------------ ------------ ------------ ------------- ---------------- ---------------
---------- ---------- ---------- ---------- --------- -------- ---------- ---------- --------- -----------
----------------- ------------- ------------- -------------- ------------- ------------ ------------ ------------ ------------- ---------------- ---------------
Transactions
with owners,
recorded
directly in
equity
----------------- ------------- ------------- -------------- ------------- ------------ ------------ ------------ ------------- ---------------- ---------------
Dividends paid
(refer to note
14) - - - (142,760) - - - (142,760) - (142,760)
----------------- ------------- ------------- -------------- ------------- ------------ ------------ ------------ ------------- ---------------- ---------------
Share-based
payment
transactions - - - - (2,202) - - (2,202) - (2,202)
----------------- ------------- ------------- -------------- ------------- ------------ ------------ ------------ ------------- ---------------- ---------------
---------- ---------- ---------- ----------- -------- ---------- -------- ----------- ---------- -----------
----------------- ------------- ------------- -------------- ------------- ------------ ------------ ------------ ------------- ---------------- ---------------
Total
transactions
with owners - - - (142,760) (2,202) - - (144,962) - (144,962)
----------------- ------------- ------------- -------------- ------------- ------------ ------------ ------------ ------------- ---------------- ---------------
---------- ---------- ---------- ----------- -------- ---------- -------- ----------- ---------- -----------
----------------- ------------- ------------- -------------- ------------- ------------ ------------ ------------ ------------- ---------------- ---------------
Transactions
with
non-controlling
interests,
recorded
directly in
equity
----------------- ------------- ------------- -------------- ------------- ------------ ------------ ------------ ------------- ---------------- ---------------
Dividends paid - - - - - - - - (32,849) (32,849)
----------------- ------------- ------------- -------------- ------------- ------------ ------------ ------------ ------------- ---------------- ---------------
Total changes in
controlling
interests of
subsidiaries - - - - - - - - (51,763) (51,763)
----------------- ------------- ------------- -------------- ------------- ------------ ------------ ------------ ------------- ---------------- ---------------
---------- ---------- ---------- ---------- --------- ---------- ---------- ---------- --------- -----------
----------------- ------------- ------------- -------------- ------------- ------------ ------------ ------------ ------------- ---------------- ---------------
Total
transactions
with
non-controlling
interests - - - - - - - - (84,612) (84,612)
----------------- ------------- ------------- -------------- ------------- ------------ ------------ ------------ ------------- ---------------- ---------------
------------ ------------ ------------ ------------ --------- ---------- ---------- ------------ ---------- --------------
----------------- ------------- ------------- -------------- ------------- ------------ ------------ ------------ ------------- ---------------- ---------------
Balance as at 30
June 2011 1,660,000 2,472,655 2,000,000 2,386,011 (62,456) (251,640) (193,529) 8,011,041 775,315 8,786,356
----------------- ------------- ------------- -------------- ------------- ------------ ------------ ------------ ------------- ---------------- ---------------
======= ======= ======= ======= ===== ====== ====== ======= ====== =======
----------------- ------------- ------------- -------------- ------------- ------------ ------------ ------------ ------------- ---------------- ---------------
DP World Limited and its subsidiaries
Condensed consolidated statement of changes in equity
(continued)
For the six months ended 30 June 2011
Attributable to equity holders of the Company
Hedging and
Share Share Shareholders' Retained other Actuarial Translation Non-controlling Total
capital premium reserve earnings reserves reserve reserve Total interests equity
USD'000 USD'000 USD'000 USD'000 USD'000 USD'000 USD'000 USD'000 USD'000 USD'000
(Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited)
----------------- ------------- ------------- -------------- ------------- ------------ ------------ ------------ -------------- ---------------- ---------------
Balance as at 1
January 2010 1,660,000 2,472,655 2,000,000 1,584,804 (49,864) (302,300) (134,347) 7,230,948 806,497 8,037,445
----------------- ------------- ------------- -------------- ------------- ------------ ------------ ------------ -------------- ---------------- ---------------
------------ ------------ ------------ ------------ ---------- ---------- ---------- ------------ ---------- ------------
----------------- ------------- ------------- -------------- ------------- ------------ ------------ ------------ -------------- ---------------- ---------------
Total
comprehensive
income for the
period:
----------------- ------------- ------------- -------------- ------------- ------------ ------------ ------------ -------------- ---------------- ---------------
Profit for the
period - - - 176,609 - - - 176,609 42,612 219,221
----------------- ------------- ------------- -------------- ------------- ------------ ------------ ------------ -------------- ---------------- ---------------
Total other
comprehensive
income, net of
tax - - - - (12,012) (11,598) (501,550) (525,160) (39,108) (564,268)
----------------- ------------- ------------- -------------- ------------- ------------ ------------ ------------ -------------- ---------------- ---------------
---------- ---------- ---------- ---------- --------- --------- ---------- ---------- --------- ----------
----------------- ------------- ------------- -------------- ------------- ------------ ------------ ------------ -------------- ---------------- ---------------
Total
comprehensive
income for the
period - - - 176,609 (12,012) (11,598) (501,550) (348,551) 3,504 (345,047)
----------------- ------------- ------------- -------------- ------------- ------------ ------------ ------------ -------------- ---------------- ---------------
---------- ---------- ---------- ---------- --------- --------- ---------- ---------- --------- ----------
----------------- ------------- ------------- -------------- ------------- ------------ ------------ ------------ -------------- ---------------- ---------------
Transactions
with owners,
recorded
directly in
equity
----------------- ------------- ------------- -------------- ------------- ------------ ------------ ------------ -------------- ---------------- ---------------
Dividends paid
(refer to note
14) - - - (136,120) - - - (136,120) - (136,120)
----------------- ------------- ------------- -------------- ------------- ------------ ------------ ------------ -------------- ---------------- ---------------
Share-based
payment
transactions - - - - 1,099 - - 1,099 - 1,099
----------------- ------------- ------------- -------------- ------------- ------------ ------------ ------------ -------------- ---------------- ---------------
Others - - - - 304 - - 304 - 304
----------------- ------------- ------------- -------------- ------------- ------------ ------------ ------------ -------------- ---------------- ---------------
---------- ---------- ---------- ---------- ------- ---------- -------- ----------- ---------- -----------
----------------- ------------- ------------- -------------- ------------- ------------ ------------ ------------ -------------- ---------------- ---------------
Total
transactions
with owners - - - (136,120) 1,403 - - (134,717) - (134,717)
----------------- ------------- ------------- -------------- ------------- ------------ ------------ ------------ -------------- ---------------- ---------------
---------- ---------- ---------- ---------- ------- ---------- -------- ----------- ---------- -----------
----------------- ------------- ------------- -------------- ------------- ------------ ------------ ------------ -------------- ---------------- ---------------
Transactions
with
non-controlling
interests,
recorded
directly in
equity
----------------- ------------- ------------- -------------- ------------- ------------ ------------ ------------ -------------- ---------------- ---------------
Dividends paid - - - - - - - - (20,976) (20,976)
----------------- ------------- ------------- -------------- ------------- ------------ ------------ ------------ -------------- ---------------- ---------------
Amount
contributed by
non-controlling
interests - - - - - - - - 610 610
----------------- ------------- ------------- -------------- ------------- ------------ ------------ ------------ -------------- ---------------- ---------------
---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- --------- ----------
----------------- ------------- ------------- -------------- ------------- ------------ ------------ ------------ -------------- ---------------- ---------------
Total
transactions
with
non-controlling
interests - - - - - - - - (20,366) (20,366)
----------------- ------------- ------------- -------------- ------------- ------------ ------------ ------------ -------------- ---------------- ---------------
------------ ------------ ------------ ------------ ---------- ----------- ----------- ------------- ---------- --------------
----------------- ------------- ------------- -------------- ------------- ------------ ------------ ------------ -------------- ---------------- ---------------
Balance as at 30
June 2010 1,660,000 2,472,655 2,000,000 1,625,293 (60,473) (313,898) (635,897) 6,747,680 789,635 7,537,315
----------------- ------------- ------------- -------------- ------------- ------------ ------------ ------------ -------------- ---------------- ---------------
======= ======= ======= ======= ===== ====== ====== ======= ====== =======
----------------- ------------- ------------- -------------- ------------- ------------ ------------ ------------ -------------- ---------------- ---------------
DP World Limited and its subsidiaries
Condensed consolidated statement of cash flows
For the six months ended 30 June 2011
30 June 30 June
2011 2010
---------------------------------------- ------ -------------- ------------
USD'000 USD'000
---------------------------------------- ------ -------------- ------------
Notes (Unaudited) (Unaudited)
---------------------------------------- ------ -------------- ------------
Cash flows from operating activities
---------------------------------------- ------ -------------- ------------
Profit for the period 740,875 219,221
---------------------------------------- ------ -------------- ------------
Adjustments for:
---------------------------------------- ------ -------------- ------------
Depreciation and amortisation 210,689 217,427
---------------------------------------- ------ -------------- ------------
Impairment 5 14,974 3,500
---------------------------------------- ------ -------------- ------------
Share of profit from equity-accounted
investees 7 (74,095) (59,012)
---------------------------------------- ------ -------------- ------------
Finance costs 206,231 190,915
---------------------------------------- ------ -------------- ------------
Income tax expenses 24,426 12,088
---------------------------------------- ------ -------------- ------------
(Gain)/ loss on disposal of property,
plant and equipment 9 (97) 1,352
---------------------------------------- ------ -------------- ------------
Profit on sale and termination of
business 5 (485,305) (13,542)
---------------------------------------- ------ -------------- ------------
Finance income (67,389) (46,504)
---------------------------------------- ------ -------------- ------------
----------- -----------
---------------------------------------- ------ -------------- ------------
Gross cash flow from operations 570,309 525,445
---------------------------------------- ------ -------------- ------------
Change in inventories (3,302) (105)
---------------------------------------- ------ -------------- ------------
Change in accounts receivable and
prepayments 32,918 (3,602)
---------------------------------------- ------ -------------- ------------
Change in accounts payable and accruals (129,884) 30,722
---------------------------------------- ------ -------------- ------------
Changes in provisions, pension and
post-employment benefits (5,409) (17,126)
---------------------------------------- ------ -------------- ------------
----------- -----------
---------------------------------------- ------ -------------- ------------
Cash generated from operating
activities 464,632 535,334
---------------------------------------- ------ -------------- ------------
Income taxes paid (37,003) (48,626)
---------------------------------------- ------ -------------- ------------
----------- -----------
---------------------------------------- ------ -------------- ------------
Net cash from operating activities 427,629 486,708
---------------------------------------- ------ -------------- ------------
----------- -----------
---------------------------------------- ------ -------------- ------------
Cash flows from investing activities
---------------------------------------- ------ -------------- ------------
Additions to property, plant and
equipment 9 (222,013) (303,572)
---------------------------------------- ------ -------------- ------------
Acquisition of land - (191,982)
---------------------------------------- ------ -------------- ------------
Proceeds from disposal of property,
plant and equipment 16,873 5,933
---------------------------------------- ------ -------------- ------------
Proceeds from disposal of investment
in equity-accounted investees 111,230 15,900
---------------------------------------- ------ -------------- ------------
Proceeds from monetisation of
investment in subsidiaries 1,476,093 -
---------------------------------------- ------ -------------- ------------
Cash outflow on monetisation of
investment in subsidiaries (71,444) -
---------------------------------------- ------ -------------- ------------
Additions to port concession rights 10 (16,766) (107,801)
---------------------------------------- ------ -------------- ------------
Interest received 74,841 45,554
---------------------------------------- ------ -------------- ------------
Dividends received from
equity-accounted investees 43,573 42,424
---------------------------------------- ------ -------------- ------------
Additional investment in
equity-accounted investees (5,422) (23,187)
---------------------------------------- ------ -------------- ------------
Net loan (given to)/ repaid by
equity-accounted investees (54,857) 27,000
---------------------------------------- ------ -------------- ------------
------------- -----------
---------------------------------------- ------ -------------- ------------
Net cash from/ (used in) investing
activities 1,352,108 (489,731)
---------------------------------------- ------ -------------- ------------
------------- -----------
---------------------------------------- ------ -------------- ------------
DP World Limited and its subsidiaries
Condensed consolidated statement of cash flows (continued)
for the six months ended 30 June 2011
30 June 2011 30 June 2010
------------------------------------- ------ -------------- ---------------
USD'000 USD'000
------------------------------------- ------ -------------- ---------------
Notes (Unaudited) (Unaudited)
------------------------------------- ------ -------------- ---------------
Cash flows from financing activities
------------------------------------- ------ -------------- ---------------
Repayment of interest bearing loans
and borrowings (93,353) (90,328)
------------------------------------- ------ -------------- ---------------
Drawdown of interest bearing loans
and borrowings 162,045 198,165
------------------------------------- ------ -------------- ---------------
Dividend paid to the owners of the
Company 14 (142,760) (136,120)
------------------------------------- ------ -------------- ---------------
Interest paid (153,246) (141,667)
------------------------------------- ------ -------------- ---------------
Dividends paid to non-controlling
interests (32,849) (20,976)
------------------------------------- ------ -------------- ---------------
Contribution by non-controlling
interests - 610
------------------------------------- ------ -------------- ---------------
------------ -----------
------------------------------------- ------ -------------- ---------------
Net cash used in financing
activities (260,163) (190,316)
------------------------------------- ------ -------------- ---------------
------------ -----------
------------------------------------- ------ -------------- ---------------
Net increase/ (decrease) in cash and
cash equivalents 1,519,574 (193,339)
------------------------------------- ------ -------------- ---------------
Cash and cash equivalents as at 1
January 2,516,616 2,898,566
------------------------------------- ------ -------------- ---------------
Cash classified as held for sale as
at 1 January 50,900 -
------------------------------------- ------ -------------- ---------------
Effect of exchange rate fluctuations
on cash held 26,224 (29,245)
------------------------------------- ------ -------------- ---------------
------------- --------------
------------------------------------- ------ -------------- ---------------
Cash and cash equivalents as at 30
June 4,113,314 2,675,982
------------------------------------- ------ -------------- ---------------
======= =======
------------------------------------- ------ -------------- ---------------
DP World Limited and its subsidiaries
Notes to the condensed consolidated interim financial
statements
1 Legal status and principal activities
DP World Limited ("the Company") was incorporated on 9 August
2006 as a Company Limited by Shares with the Registrar of Companies
of the Dubai International Financial Centre ("DIFC") under the
Companies Law, DIFC Law No. 3 of 2006. The condensed consolidated
financial statements of the Company for the period ended 30 June
2011 comprise the Company and its subsidiaries (collectively
referred to as "the Group") and the Group's interest in
equity-accounted investees. The Group is engaged in the business of
international marine terminal operations and development, logistics
and related services.
Port & Free Zone World FZE ("the Parent Company"), which
originally held 100% of the Company's issued and outstanding share
capital, made an initial public offer of 19.55% of its share
capital to the public and as a result the Company was listed on the
Nasdaq Dubai (formerly known as Dubai International Financial
Exchange) with effect from 26 November 2007. It was listed
additionally on the London Stock Exchange with effect from 1 June
2011.
Port & Free Zone World FZE is a wholly owned subsidiary of
Dubai World Corporation ("the Ultimate Parent Company").
The Company's registered office address is P.O. Box 17000,
Dubai, United Arab Emirates.
2 Basis of preparation
Statement of compliance
The condensed consolidated interim financial statements of the
Group are prepared in accordance with International Accounting
Standard 34, Interim Financial Reporting. These condensed
consolidated interim financial statements do not include all of the
information required for full annual consolidated financial
statements and should be read in conjunction with the consolidated
financial statements of the Group as at and for the year ended 31
December 2010.
The condensed consolidated interim financial statements were
approved by the Board of Directors on 25 August 2011.
3 Significant accounting policies
The accounting policies applied by the Group in these condensed
consolidated interim financial statements are the same as those
applied by the Group in its consolidated financial statements as at
and for the year ended 31 December 2010.
4 Accounting judgements and estimates
The preparation of the interim financial statement requires
management to make judgements, estimates and assumptions that
affect the application of accounting policies and the reported
amounts of income, expenses, assets and liabilities and the
disclosure of contingent liabilities at the reporting date. Actual
results may differ from these estimates.
In preparing these condensed consolidated interim financial
statements, the significant judgements made by management in
applying the Group's accounting policies and the key sources of
estimation uncertainty were the same as those that applied to the
consolidated financial statements as at and for the year ended 31
December 2010.
DP World Limited and its subsidiaries
Notes to the condensed consolidated interim financial statements
(continued)
5 Separately disclosed items
Six months ended Six months ended
------------------------------------- ----------------- -----------------
30 June 2011 30 June 2010
------------------------------------- ----------------- -----------------
USD '000 USD'000
------------------------------------- ----------------- -----------------
(Unaudited) (Unaudited)
------------------------------------- ----------------- -----------------
Construction contract revenue - 69,791
------------------------------------- ----------------- -----------------
Construction contract costs - (69,791)
------------------------------------- ----------------- -----------------
Impairment (14,974) (3,500)
------------------------------------- ----------------- -----------------
Other income - 5,591
------------------------------------- ----------------- -----------------
Share of loss from equity-accounted
investees - (2,900)
------------------------------------- ----------------- -----------------
Profit on sale and termination
of business 485,305 13,542
------------------------------------- ----------------- -----------------
Loss on currency options (10,770) -
------------------------------------- ----------------- -----------------
---------- --------
------------------------------------- ----------------- -----------------
459,561 12,733
------------------------------------- ----------------- -----------------
====== =====
------------------------------------- ----------------- -----------------
Construction contract revenue and costs 2011: Nil (2010: USD
69,791 thousand represented the revenue recorded in accordance with
IFRIC 12 'Service Concession Arrangements' on construction of a
port. The construction revenue represented the fair value of the
construction services provided in developing the port. No margin
was recognised, as in management's opinion the fair value of the
construction services provided approximates to the construction
cost).
Impairment represents a USD 14,974 thousand provision against
the investment in an equity accounted investee in the 'Middle East,
Europe and Africa' region. (2010: represents an impairment loss on
a property held in the 'Australia and Americas' region that was
valued for a potential sale and had been classified as an asset
held for sale at its fair value).
Other income 2011: Nil(2010: related to certain claim
settlements of a non-recurring nature in the 'Australia and
Americas' region).
Share of loss from equity accounted investees 2011: Nil (2010:
mainly related to the non-recurring income tax expense incurred on
the transfer of certain assets by an equity-accounted investee
located in the 'Asia Pacific and Indian Subcontinent' region and
operating loss of an equity-accounted investee in the 'Australia
and Americas' region whose parent company was disposed of in
2010).
Profit on sale and termination of business relates to the profit
(net of tax) of USD 435,509 thousand on monetisation of 75%
interest in the Australia Ports business and sale of interest in an
associate in the 'Australia and Americas' region resulting in a
profit (net of tax) of USD 49,796 thousand. The profit on sale and
termination of business includes foreign exchange reserves recycled
to the condensed consolidated income statement on account of loss
of control. (2010: represents the profit on sale of investment in
an associate in the 'Australia and Americas' region).
Loss on currency options represents USD 10,770 thousand loss on
foreign currency options related to the 'Australia and Americas'
region (2010: Nil).
DP World Limited and its subsidiaries
Notes to the condensed consolidated interim financial statements
(continued)
6 Segment information
Based on the internal management reports that are reviewed by
the Board of Directors, which are based on the location of the
Group's assets and liabilities, the Group has identified the
following three geographic areas as its basis of segmentation. The
Group measures segment performance based on the earnings before
separately disclosed items, interest, tax, depreciation and
amortisation ("Adjusted EBITDA").
The following table presents certain results, assets and
liabilities information regarding the Group's operating segments as
at the reporting date.
Asia Pacific Middle East,
and Indian Australia Europe
subcontinent and Americas and Africa Head office Inter-segment Total
Six months Six months ended Six months ended Six months Six months Six months ended
ended 30 June 30 June 30 June ended 30 June ended 30 June 30 June
------------ -------------------------- -------------------------- -------------------------- -------------------------- -------------------------- ---------------------------
2011 2010 2011 2010 2011 2010 2011 2010 2011 2010 2011 2010
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ -------------
USD'000 USD'000 USD'000 USD'000 USD'000 USD'000 USD'000 USD'000 USD'000 USD'000 USD'000 USD'000
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ -------------
(Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited)
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ -------------
Revenue
from
operations 248,579 281,983 346,665 388,872 906,808 853,467 - - - - 1,502,052 1,524,322
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ -------------
====== ====== ====== ====== ====== ====== ===== ===== ===== ====== ======= =======
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ -------------
Segment
results
from
operations
* 105,357 57,906 575,676 69,809 265,505 287,523 (66,821) (51,606) - - 879,717 363,632
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ -------------
Finance
income - - - - - - 67,389 46,504 - - 67,389 46,504
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ -------------
Finance
cost - - - - - - (206,231) (190,915) - - (206,231) (190,915)
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ -------------
--------- --------- ---------- --------- ---------- ---------- ----------- ---------- ------- ----- ----------- ------------
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ -------------
Profit/
(loss) for
the
period 105,357 57,906 575,676 69,809 265,505 287,523 (205,663) (196,017) - - 740,875 219,221
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ -------------
====== ===== ====== ===== ====== ====== ======= ====== ==== ===== ====== ======
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ -------------
* Segment results from operations comprise profit for the period
before net finance cost.
Net finance cost and tax expense from various geographical
locations and head office have been grouped under head office.
DP World Limited and its subsidiaries
Notes to the condensed consolidated interim financial statements
(continued)
6 Segment information (continued)
Asia Pacific Middle East,
and Indian Australia Europe
subcontinent and Americas and Africa Head office Inter-segment Total
As at As at As at As at As at As at
-------------- -------------------------- ------------------------- ---------------------------- ------------------------------ --------------------------- --------------------------------
31
30 June 31 December 30 June December 30 June 31 December 30 June 31 December 30 June 31 December 30 June 31 December
-------------- ------------ ------------ ------------ ----------- ------------- ------------- --------------- ------------- ------------- ------------ --------------- ---------------
2011 2010 2011 2010 2011 2010 2011 2010 2011 2010 2011 2010
-------------- ------------ ------------ ------------ ----------- ------------- ------------- --------------- ------------- ------------- ------------ --------------- ---------------
USD'000 USD'000 USD'000 USD'000 USD'000 USD'000 USD'000 USD'000 USD'000 USD'000 USD'000 USD'000
-------------- ------------ ------------ ------------ ----------- ------------- ------------- --------------- ------------- ------------- ------------ --------------- ---------------
(Unaudited) (Audited) (Unaudited) (Audited) (Unaudited) (Audited) (Unaudited) (Audited) (Unaudited) (Audited) (Unaudited) (Audited)
-------------- ------------ ------------ ------------ ----------- ------------- ------------- --------------- ------------- ------------- ------------ --------------- ---------------
Segment
assets 5,459,952 5,344,059 1,965,044 3,755,601 9,006,133 8,443,788 11,023,943 9,517,703 (7,980,907) (7,701,607) 19,474,165 19,359,544
-------------- ------------ ------------ ------------ ----------- ------------- ------------- --------------- ------------- ------------- ------------ --------------- ---------------
======= ======= ======= ======= ======= ======= ======== ======= ======= ======= ======== ========
-------------- ------------ ------------ ------------ ----------- ------------- ------------- --------------- ------------- ------------- ------------ --------------- ---------------
Segment
liabilities 431,474 417,988 195,205 513,349 1,265,043 1,302,420 8,719,882 8,388,042 (1,229,272) (949,758) 9,382,332 9,672,041
-------------- ------------ ------------ ------------ ----------- ------------- ------------- --------------- ------------- ------------- ------------ --------------- ---------------
Tax
liabilities* - - - - - - 1,305,477 1,191,577 - - 1,305,477 1,191,577
-------------- ------------ ------------ ------------ ----------- ------------- ------------- --------------- ------------- ------------- ------------ --------------- ---------------
---------- ---------- --------- ---------- ------------ ------------ -------------- ------------ ------------ ---------- -------------- --------------
-------------- ------------ ------------ ------------ ----------- ------------- ------------- --------------- ------------- ------------- ------------ --------------- ---------------
Total
liabilities 431,474 417,988 195,205 513,349 1,265,043 1,302,420 10,025,359 9,579,619 (1,229,272) (949,758) 10,687,809 10,863,618
-------------- ------------ ------------ ------------ ----------- ------------- ------------- --------------- ------------- ------------- ------------ --------------- ---------------
====== ====== ===== ====== ======= ======= ======== ======= ======= ====== ======== ========
-------------- ------------ ------------ ------------ ----------- ------------- ------------- --------------- ------------- ------------- ------------ --------------- ---------------
Middle East,
Asia Pacific Australia Europe
and Indian and Americas and Africa Head office Inter-segment
subcontinent Six months Six months Six months Six months Total
Six months ended ended ended ended ended Six months ended
30 June 30 June 30 June 30 June 30 June 30 June
----------------------- --------------------- ---------------------------- -------------------------- -------------------------- -------------------------- --------------------------
2011 2010 2011 2010 2011 2010 2011 2010 2011 2010 2011 2010
-------------------------------- ------------ -------------- ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
USD'000 USD'000 USD'000 USD'000 USD'000 USD'000 USD'000 USD'000 USD'000 USD'000 USD'000 USD'000
-------------------------------- ------------ -------------- ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
(Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited)
-------------------------------- ------------ -------------- ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
Capital expenditure
(excluding acquisition
of land) 5,749 105,112 61,861 128,854 170,537 177,407 632 - - - 238,779 411,373
----------------------- ------- -------------- ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
==== ===== ===== ===== ===== ====== === === ==== ==== ====== ======
----------------------- ------- -------------- ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
Acquisition of
land - - - - - 191,982 - - - - - 191,982
----------------------- ------- -------------- ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
==== ===== ===== ===== ===== ===== === === ==== ==== ====== =====
----------------------- ------- -------------- ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
Depreciation 24,213 16,738 26,472 29,212 95,182 91,839 2,216 2,445 - - 148,083 140,234
----------------------- ------- -------------- ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
===== ===== ===== ===== ===== ===== ==== ==== ==== ==== ===== =====
----------------------- ------- -------------- ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
Amortisation/
impairment 28,304 34,430 3,970 26,004 45,306 20,259 - - - - 77,580 80,693
----------------------- ------- -------------- ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
===== ===== ===== ===== ===== ===== ==== ==== ==== ==== ===== =====
----------------------- ------- -------------- ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
Share of profit
of equity
accounted investees
before
separately disclosed
items 54,974 45,978 10,463 14,235 8,658 1,699 - - - - 74,095 61,912
----------------------- ------- -------------- ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
===== ===== ===== ===== ==== ==== ===== ==== ==== ==== ===== =====
----------------------- ------- -------------- ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
Tax expense * - - - - - - 24,426 12,088 - - 24,426 12,088
----------------------- ------- -------------- ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
===== ===== ===== ===== ==== ==== ===== ===== ==== ==== ===== ====
----------------------- ------- -------------- ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
* Tax liabilities and tax expense from various geographical
locations and head office have been grouped under head office.
DP World Limited and its subsidiaries
Notes to the condensed consolidated interim financial statements
(continued)
6 Segment information (continued)
Earnings before separately disclosed items, interest, tax,
depreciation and amortisation ("Adjusted EBITDA")
Asia Pacific Middle East,
and Indian Australia Europe
subcontinent and Americas and Africa Head office Inter-segment Total
Six months Six months ended Six months ended Six months ended Six months Six months ended
ended 30 June 30 June 30 June 30 June ended 30 June 30 June
-------------- -------------------------- -------------------------- -------------------------- -------------------------- -------------------------- --------------------------
2011 2010 2011 2010 2011 2010 2011 2010 2011 2010 2011 2010
-------------- ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
USD'000 USD'000 USD'000 USD'000 USD'000 USD'000 USD'000 USD'000 USD'000 USD'000 USD'000 USD'000
-------------- ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
(Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited)
-------------- ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
Revenue
before
separately
disclosed
items 248,579 212,192 346,665 388,872 906,808 853,467 - - - - 1,502,052 1,454,531
-------------- ------------ ----------- ------------- ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
====== ====== ====== ====== ====== ====== ===== ===== ====== ===== ======= =======
-------------- ------------ ----------- ------------- ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
Adjusted
EBITDA 157,874 110,574 120,813 107,292 405,993 399,621 (40,179) (37,073) - - 644,501 580,414
-------------- ------------ ----------- ------------- ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
Finance
income - - - - - - 67,389 46,504 - - 67,389 46,504
-------------- ------------ ----------- ------------- ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
Finance costs - - - - - - (195,461) (190,915) - - (195,461) (190,915)
-------------- ------------ ----------- ------------- ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
Tax expense - - - - - - (24,426) (12,088) - - (24,426) (12,088)
-------------- ------------ ----------- ------------- ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
Depreciation
and
amortisation (52,517) (51,168) (30,442) (51,716) (125,514) (112,098) (2,216) (2,445) - - (210,689) (217,427)
-------------- ------------ ----------- ------------- ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
--------- --------- --------- -------- ---------- ---------- --------- ----------- --------- ------ ----------- -----------
-------------- ------------ ----------- ------------- ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
Adjusted net
profit/
(loss) for
the period
before
separately
disclosed
items 105,357 59,406 90,371 55,576 280,479 287,523 (194,893) (196,017) - - 281,314 206,488
-------------- ------------ ----------- ------------- ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
Adjusted for
separately
disclosed
items - (1,500) 485,305 14,233 (14,974) - (10,770) - - - 459,561 12,733
-------------- ------------ ----------- ------------- ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
---------- --------- ---------- --------- ---------- ---------- ----------- ---------- ------- ------- ---------- -----------
-------------- ------------ ----------- ------------- ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
Profit/
(loss) for
the period 105,357 57,906 575,676 69,809 265,505 287,523 (205,663) (196,017) - - 740,875 219,221
-------------- ------------ ----------- ------------- ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
====== ===== ====== ===== ====== ====== ======= ====== ==== ==== ====== ======
-------------- ------------ ----------- ------------- ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
DP World Limited and its subsidiaries
Notes to the condensed consolidated interim financial statements
(continued)
7 Investment in equity-accounted investees
Summary of financial information for equity-accounted investees,
not adjusted for the percentage ownership held by the Group:
Asia Pacific and
Indian Australia Middle East, Europe
sub-continent and Americas and Africa Total
------------- ---------------------------- ---------------------------- ---------------------------- -------------------------------
30 June 31 December 30 June 31 December 30 June 31 December 30 June 31 December
------------- ------------- ------------- ------------- ------------- ------------- ------------- --------------- --------------
2011 2010 2011 2010 2011 2010 2011 2010
------------- ------------- ------------- ------------- ------------- ------------- ------------- --------------- --------------
USD'000 USD'000 USD'000 USD'000 USD'000 USD'000 USD'000 USD'000
------------- ------------- ------------- ------------- ------------- ------------- ------------- --------------- --------------
(Unaudited) (Audited) (Unaudited) (Audited) (Unaudited) (Audited) (Unaudited) (Audited)
------------- ------------- ------------- ------------- ------------- ------------- ------------- --------------- --------------
Current
assets 451,368 397,686 376,147 402,539 337,738 321,606 1,165,253 1,121,831
------------- ------------- ------------- ------------- ------------- ------------- ------------- --------------- --------------
Non-current
assets 7,508,256 7,381,166 2,802,183 833,592 3,029,528 2,877,660 13,339,967 11,092,418
------------- ------------- ------------- ------------- ------------- ------------- ------------- --------------- --------------
------------ ------------ ------------ ------------ ------------ ------------ -------------- -------------
------------- ------------- ------------- ------------- ------------- ------------- ------------- --------------- --------------
Total assets 7,959,624 7,778,852 3,178,330 1,236,131 3,367,266 3,199,266 14,505,220 12,214,249
------------- ------------- ------------- ------------- ------------- ------------- ------------- --------------- --------------
======= ======= ======= ======= ======= ======= ======== ========
------------- ------------- ------------- ------------- ------------- ------------- ------------- --------------- --------------
Current
liabilities 686,910 929,830 227,681 136,751 193,652 169,780 1,108,243 1,236,361
------------- ------------- ------------- ------------- ------------- ------------- ------------- --------------- --------------
Non-current
liabilities 1,496,696 1,255,237 1,301,673 237,751 1,008,410 939,289 3,806,779 2,432,277
------------- ------------- ------------- ------------- ------------- ------------- ------------- --------------- --------------
------------ ------------ ------------ ---------- ------------ ------------ ------------ ------------
------------- ------------- ------------- ------------- ------------- ------------- ------------- --------------- --------------
Total
liabilities 2,183,606 2,185,067 1,529,354 374,502 1,202,062 1,109,069 4,915,022 3,668,638
------------- ------------- ------------- ------------- ------------- ------------- ------------- --------------- --------------
======= ======= ======= ====== ======= ======= ======= ========
------------- ------------- ------------- ------------- ------------- ------------- ------------- --------------- --------------
Six months ended Six months ended Six months ended Six months ended 30
30 June 30 June 30 June June
---------- -------------------------- -------------------------- -------------------------- --------------------------
2011 2010 2011 2010 2011 2010 2011 2010
---------- ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
USD'000 USD'000 USD'000 USD'000 USD'000 USD'000 USD'000 USD'000
---------- ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
(Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited)
---------- ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
Revenues 573,967 494,117 422,035 237,416 320,973 283,038 1,316,975 1,014,571
---------- ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
Expenses (442,987) (386,860) (404,042) (215,287) (289,182) (274,102) (1,136,211) (876,249)
---------- ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
---------- ---------- --------- ---------- --------- --------- ---------- ----------
---------- ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
Net
profit 130,980 107,257 17,993 22,129 31,791 8,936 180,764 138,322
---------- ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
====== ===== ===== ===== ===== ==== ====== ======
---------- ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
The Group's share of profit of equity-accounted investees (before separately
disclosed items) for the six months period ending 30 June 2011/ 30
June 2010 74,095 59,012
---------------------------------------------------------------------------------------------- ------------ ------------
====== ======
---------- ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
The Group's investment in net assets of equity accounted investees
as at 30 June 2011/ 31 December 2010 3,753,495 3,474,113
---------------------------------------------------------------------------------------------- ------------ ------------
====== ======
---------- ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
DP World Limited and its subsidiaries
Notes to the condensed consolidated interim financial statements
(continued)
8 Income tax
The Group's effective tax rate in respect of continuing
operations is as below:
Six months
ended Six months ended
-------------------------------------- ------------- -----------------
30 June 2011 30 June 2010
-------------------------------------- ------------- -----------------
(Unaudited) (Unaudited)
-------------------------------------- ------------- -----------------
Before separately disclosed items 13.0% 12.1%
-------------------------------------- ------------- -----------------
Including separately disclosed items 14.1% 12.1%
-------------------------------------- ------------- -----------------
===== =====
-------------------------------------- ------------- -----------------
The effective tax rate is derived from the profit for the period
after excluding profit on sale and termination of business.
9 Property, plant and equipment
During the six month period ended 30 June 2011, the Group
acquired assets amounting to USD 222,013 thousand (30 June 2010:
USD 303,572 thousand excluding land amounting to USD 191,982
thousand).
The depreciation on property, plant and equipment during the six
months period ended 30 June 2011 amounted to USD 148,083 thousand
(30 June 2010: USD 140,234 thousand).
Assets with a net carrying amount of USD 16,776 thousand were
disposed by the Group during the six months ended 30 June 2011 (30
June 2010: USD 7,285 thousand), resulting in a profit on disposal
of USD 97 thousand (30 June 2010: loss of USD 1,352 thousand).
10 Goodwill and port concession rights
Goodwill
During the six month period ended 30 June 2011, the movement in
goodwill represents the impact of foreign currency translation of
USD 31,973 thousand (30 June 2010: USD 149,598 thousand).
Port concession rights
During the six month period ended 30 June 2011, the Group
acquired port concession rights amounting to USD 16,766 thousand
(30 June 2010: USD 107,801 thousand).
The amortization of port concession rights during the six months
period ended 30 June 2011 amounted to USD 62,606 thousand (30 June
2010: USD 77,193 thousand).
DP World Limited and its subsidiaries
Notes to the condensed consolidated interim financial statements
(continued)
11 Bank balances and cash
30 June 2011 31 December 2010
----------------------------- -------------- -----------------
USD'000 USD'000
----------------------------- -------------- -----------------
(Unaudited) (Audited)
----------------------------- -------------- -----------------
Cash at banks and in hand 510,208 443,542
----------------------------- -------------- -----------------
Short-term deposits 3,598,602 2,076,074
----------------------------- -------------- -----------------
Deposits under lien 7,100 -
----------------------------- -------------- -----------------
------------- -------------
----------------------------- -------------- -----------------
Bank balances and cash 4,115,910 2,519,616
----------------------------- -------------- -----------------
Bank overdrafts (2,596) (3,000)
----------------------------- -------------- -----------------
------------- -------------
----------------------------- -------------- -----------------
4,113,314 2,516,616
----------------------------- -------------- -----------------
Cash classified as held for
sale - 50,900
----------------------------- -------------- -----------------
------------- -------------
----------------------------- -------------- -----------------
Cash and cash equivalents 4,113,314 2,567,516
----------------------------- -------------- -----------------
======= =======
----------------------------- -------------- -----------------
Short-term deposits are maintained for varying periods between
one day and three months depending on the cash requirements of the
Group and earn interest at the normal commercial rates.
Bank overdrafts are repayable on demand.
12 Assets and liabilities held for sale
30 June 2011 31 December 2010
-------------------------------- ------------- -----------------
USD'000 USD'000
-------------------------------- ------------- -----------------
(Unaudited) (Audited)
-------------------------------- ------------- -----------------
Assets held for sale
-------------------------------- ------------- -----------------
Australia and America region
(refer to note (a)) - 2,071,000
-------------------------------- ------------- -----------------
Middle East, Europe and Africa 12,306 13,840
-------------------------------- ------------- -----------------
--------- -------------
-------------------------------- ------------- -----------------
12,306 2,084,840
-------------------------------- ------------- -----------------
===== =======
-------------------------------- ------------- -----------------
Liabilities held for sale
-------------------------------- ------------- -----------------
Australia and America region
(refer to note (a)) - 356,193
-------------------------------- ------------- -----------------
==== ======
-------------------------------- ------------- -----------------
(a) On 11 March 2011, the Group monetized 75% of its interest in
its Australia Ports business (refer to note 5).
DP World Limited and its subsidiaries
Notes to the condensed consolidated interim financial statements
(continued)
12 Assets and liabilities held for sale (continued)
The major class of assets and liabilities held for sale in the
'Australia and America' region were as follows:
30 June 2011 31 December 2010
--------------------------------------- -------------- -----------------
USD'000 USD'000
--------------------------------------- -------------- -----------------
(Unaudited) (Audited)
--------------------------------------- -------------- -----------------
Non-current assets
--------------------------------------- -------------- -----------------
Property, plant and equipment - 392,198
--------------------------------------- -------------- -----------------
Port concession rights - 680,622
--------------------------------------- -------------- -----------------
Goodwill - 846,748
--------------------------------------- -------------- -----------------
Investment in equity-accounted
investees - 1,000
--------------------------------------- -------------- -----------------
Deferred tax assets - 27,400
--------------------------------------- -------------- -----------------
---------- --------------
--------------------------------------- -------------- -----------------
- 1,947,968
------------------------------------------------------ -----------------
---------- --------------
--------------------------------------- -------------- -----------------
Current assets
--------------------------------------- -------------- -----------------
Inventories - 6,000
--------------------------------------- -------------- -----------------
Accounts receivable and prepayments
(net) - 66,132
--------------------------------------- -------------- -----------------
Bank balances and cash (refer to
note 11) - 50,900
--------------------------------------- -------------- -----------------
---------- -----------
--------------------------------------- -------------- -----------------
- 123,032
------------------------------------------------------ -----------------
---------- --------------
--------------------------------------- -------------- -----------------
Assets classified as held for sale - 2,071,000
--------------------------------------- -------------- -----------------
====== ========
--------------------------------------- -------------- -----------------
Non-current liabilities
--------------------------------------- -------------- -----------------
Deferred tax liabilities - 213,293
--------------------------------------- -------------- -----------------
Pension and post-employment benefits - 6,900
--------------------------------------- -------------- -----------------
Interest bearing loans and borrowings - 21,900
--------------------------------------- -------------- -----------------
---------- ------------
--------------------------------------- -------------- -----------------
- 242,093
------------------------------------------------------ -----------------
---------- ------------
--------------------------------------- -------------- -----------------
Current liabilities
--------------------------------------- -------------- -----------------
Income tax liabilities - 5,800
--------------------------------------- -------------- -----------------
Pension and post-employment benefits - 49,100
--------------------------------------- -------------- -----------------
Interest bearing loans and borrowings - 3,500
--------------------------------------- -------------- -----------------
Accounts payable and accruals - 55,700
--------------------------------------- -------------- -----------------
---------- -----------
--------------------------------------- -------------- -----------------
- 114,100
------------------------------------------------------ -----------------
---------- -----------
--------------------------------------- -------------- -----------------
Liabilities classified as held
for sale - 356,193
--------------------------------------- -------------- -----------------
====== ======
------------------------------------------------------ -----------------
On 11 March 2011, the Group monetized 75% of its stake in
Australian Ports for USD 1,476,093 thousand resulting in a net gain
of USD 435,509 thousand. Accordingly, all assets and liabilities
which were reclassified as held for sale at 31 December 2010, have
been derecognised including non-controlling interests of USD 51,763
thousand. The entire portion of translation reserve of the disposal
group amounting to USD 413,463 thousand has been recycled to the
condensed consolidated income statement and the 25% of its stake in
Australian Ports retained was remeasured at its fair value at 11
March 2011.
DP World Limited and its subsidiaries
Notes to consolidated financial statements (continued)
13 Share capital
The share capital of the Company is as follows:
30 June 2011 31 December 2010
------------------------------- ------------- -----------------
USD'000 USD'000
------------------------------- ------------- -----------------
(Unaudited) (Audited)
------------------------------- ------------- -----------------
Authorised
------------------------------- ------------- -----------------
1,250,000,000/ 25,000,000,000
ordinary shares
of USD 2.00/ 0.10 each 2,500,000 2,500,000
------------------------------- ------------- -----------------
======= =======
------------------------------- ------------- -----------------
Issued and fully paid
------------------------------- ------------- -----------------
830,000/ 16,600,000 ordinary
shares of
USD 2.00/ 0.10 each 1,660,000 1,660,000
------------------------------- ------------- -----------------
======= =======
------------------------------- ------------- -----------------
On 19 May 2011, the Company consolidated 20 ordinary shares of
USD 0.10 each to 1 share of USD 2.00 each and this has been used
for the calculation of earnings per share for the current period.
Accordingly, the previous period earning per share has been
restated.
14 Dividend paid
Dividend relating to 2010 amounting to USD 142,760 thousand was
paid during the period ended 30 June 2011 (30 June 2010: USD
136,120 thousand).
15 Interest bearing loans and borrowings
The Group's interest bearing loans and borrowings are as
follows:
30 June 2011 31 December 2010
--------------------------- -------------- -----------------
USD'000 USD'000
--------------------------- -------------- -----------------
(Unaudited) (Audited)
--------------------------- -------------- -----------------
Non-current liabilities
--------------------------- -------------- -----------------
Secured bank loans 809,281 682,968
--------------------------- -------------- -----------------
Mortgage debenture stocks 2,285 2,221
--------------------------- -------------- -----------------
Unsecured loan stock 5,239 5,093
--------------------------- -------------- -----------------
Unsecured bank loans 3,611,834 3,442,000
--------------------------- -------------- -----------------
Unsecured bond issues 3,234,404 3,233,518
--------------------------- -------------- -----------------
Finance lease liabilities 48,716 54,499
--------------------------- -------------- -----------------
------------ --------------
--------------------------- -------------- -----------------
7,711,759 7,420,299
--------------------------- -------------- -----------------
------------ --------------
--------------------------- -------------- -----------------
Current liabilities
--------------------------- -------------- -----------------
Secured bank loans 87,998 76,333
--------------------------- -------------- -----------------
Unsecured bank loans 46,293 258,420
--------------------------- -------------- -----------------
Unsecured loans 2,668 2,433
--------------------------- -------------- -----------------
Finance lease liabilities 12,797 12,261
--------------------------- -------------- -----------------
---------- -----------
--------------------------- -------------- -----------------
149,756 349,447
--------------------------- -------------- -----------------
------------- --------------
--------------------------- -------------- -----------------
Total 7,861,515 7,769,746
--------------------------- -------------- -----------------
======= ========
--------------------------- -------------- -----------------
Apart from bank loans, there has been no issuance or repayment
of debt securities in the current period (2010: Nil).
DP World Limited and its subsidiaries
Notes to the condensed consolidated interim financial statements
(continued)
16 Transactions with related parties
Transactions with related parties included in the condensed
consolidated interim financial statements are as follows:
Ultimate Equity Other 30 June
Parent accounted related 2011
Company investees parties Total
------------- ------------ ------------ ------------
USD'000 USD'000 USD'000 USD'000
--------------------- ------------- ------------ ------------ ------------
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
--------------------- ------------- ------------ ------------ ------------
Expenses charged by
related parties:
--------------------- ------------- ------------ ------------ ------------
Concession fees - - 24,082 24,082
--------------------- ------------- ------------ ------------ ------------
Shared services - - 5,209 5,209
--------------------- ------------- ------------ ------------ ------------
Other recharges - - 7,055 7,055
--------------------- ------------- ------------ ------------ ------------
Revenue earned from
related parties:
--------------------- ------------- ------------ ------------ ------------
Management fee
income - 11,103 - 11,103
--------------------- ------------- ------------ ------------ ------------
==== ===== ===== =====
----------------------------------- ------------ ------------ ------------
Ultimate Equity Other 30 June
Parent accounted related 2010
Company investees parties Total
------------- ------------ ------------ ------------
USD'000 USD'000 USD'000 USD'000
--------------------- ------------- ------------ ------------ ------------
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
--------------------- ------------- ------------ ------------ ------------
Expenses charged by
related parties:
--------------------- ------------- ------------ ------------ ------------
Concession fees - - 24,082 24,082
--------------------- ------------- ------------ ------------ ------------
Shared services - - 6,041 6,041
--------------------- ------------- ------------ ------------ ------------
Other recharges - - 7,143 7,143
--------------------- ------------- ------------ ------------ ------------
Revenue earned from
related parties:
--------------------- ------------- ------------ ------------ ------------
Management fee
income - 1,975 - 1,975
--------------------- ------------- ------------ ------------ ------------
==== ==== ===== =====
----------------------------------- ------------ ------------ ------------
Balances with related parties included in the condensed
consolidated interim statement of financial position are as
follows:
30 June 2011 31 December 2010
---------------------------- ------------- -----------------
USD'000 USD'000
---------------------------- ------------- -----------------
Due from related parties: (Unaudited) (Audited)
---------------------------- ------------- -----------------
Ultimate Parent Company 2,756 3,793
---------------------------- ------------- -----------------
Parent Company 66,148 65,750
---------------------------- ------------- -----------------
Equity-accounted investees 228,728 43,400
---------------------------- ------------- -----------------
Other related parties 20,173 18,992
---------------------------- ------------- -----------------
---------- -----------
---------------------------- ------------- -----------------
317,805 131,935
---------------------------- ------------- -----------------
====== ======
---------------------------- ------------- -----------------
DP World Limited and its subsidiaries
Notes to the condensed consolidated interim financial statements
(continued)
16 Transactions with related parties(continued)
30 June 2011 31 December 2010
---------------------------- ------------- -----------------
USD'000 USD'000
---------------------------- ------------- -----------------
Due to related parties: (Unaudited) (Audited)
---------------------------- ------------- -----------------
Equity-accounted investees 1,899 1,600
---------------------------- ------------- -----------------
Other related parties 11,011 17,176
---------------------------- ------------- -----------------
-------- ---------
---------------------------- ------------- -----------------
12,910 18,776
---------------------------- ------------- -----------------
===== =====
---------------------------- ------------- -----------------
17 Operating leases
Operating lease commitments - Group as a lessee
Future minimum rentals payable under non-cancellable operating
leases are as follows:
30 June 2011 31 December 2010
-------------------------------- ------------- -----------------
USD'000 USD'000
-------------------------------- ------------- -----------------
(Unaudited) (Audited)
-------------------------------- ------------- -----------------
Within one year 140,983 178,080
-------------------------------- ------------- -----------------
Between one and five years 1,136,975 1,104,490
-------------------------------- ------------- -----------------
Between five to ten years 1,093,673 1,354,819
-------------------------------- ------------- -----------------
Between ten to twenty years 1,397,015 1,642,390
-------------------------------- ------------- -----------------
Between twenty to thirty years 659,301 708,095
-------------------------------- ------------- -----------------
Between thirty to fifty years 1,060,280 1,031,959
-------------------------------- ------------- -----------------
Between fifty to seventy years 933,299 914,908
-------------------------------- ------------- -----------------
More than seventy years 1,097,890 1,120,762
-------------------------------- ------------- -----------------
------------ --------------
-------------------------------- ------------- -----------------
7,519,416 8,055,503
-------------------------------- ------------- -----------------
======= =======
-------------------------------- ------------- -----------------
The above operating leases (Group as a lessee) mainly consist of
terminal operating leases arising out of concession arrangements
which do not meet the recognition criteria of IFRIC 12 - 'Service
Concession Arrangement' and are long term in nature.
In addition, there are also leases of plant, equipment and
vehicles. In respect of terminal operating leases, contingent rent
is payable based on revenues/ profits earned in the future period.
The majority of leases contain renewable options for additional
lease periods at rental rates based on negotiations or the
prevailing market rates.
DP World Limited and its subsidiaries
Notes to the condensed consolidated interim financial statements
(continued)
17 Operating leases (continued)
Operating lease commitments - Group as a lessor
Future minimum rentals receivable under non-cancellable
operating leases are as follows:
30 June 2011 31 December 2010
---------------------- ------------- -----------------
USD'000 USD'000
---------------------- ------------- -----------------
(Unaudited) (Audited)
---------------------- ------------- -----------------
Within one year 20,587 22,163
---------------------- ------------- -----------------
Between one to five
years 60,177 61,483
---------------------- ------------- -----------------
More than five years 31,343 38,075
---------------------- ------------- -----------------
---------- -----------
---------------------- ------------- -----------------
112,107 121,721
---------------------- ------------- -----------------
===== ======
---------------------- ------------- -----------------
The above operating leases (Group as a lessor) mainly consist of
rental of property, plant and equipment leased out by the Group.
The leases contain renewal options for additional lease periods and
at rental rates based on negotiations or the prevailing market
rates.
18 Capital commitments
30 June 2011 31 December 2010
-------------------------------------------- ------------- -----------------
USD'000 USD'000
-------------------------------------------- ------------- -----------------
(Unaudited) (Audited)
-------------------------------------------- ------------- -----------------
Estimated capital expenditure contracted
for at the reporting date 336,641 462,425
-------------------------------------------- ------------- -----------------
====== ======
-------------------------------------------- ------------- -----------------
19 Contingent liabilities
(a) The Group has the following contingent liabilities in
respect of guarantees issued:
30 June 2011 31 December 2010
------------------------ ------------- -----------------
Type of guarantee USD'000 USD'000
------------------------ ------------- -----------------
(Unaudited) (Audited)
------------------------ ------------- -----------------
Payment guarantees 108,404 143,827
------------------------ ------------- -----------------
Performance guarantees 101,064 114,446
------------------------ ------------- -----------------
Letters of credit 224 2,266
------------------------ ------------- -----------------
====== ======
------------------------ ------------- -----------------
DP World Limited and its subsidiaries
Notes to the condensed consolidated interim financial statements
(continued)
19 Contingent liabilities (continued)
(b) The Group through its 100% owned subsidiary Mundra
International Container Terminal Private Limited ("MICT") has
developed and is operating the container terminal at the Mundra
port in Gujarat.
In 2006, MICT received a show cause notice from Gujarat Maritime
Board ("GMBT") requiring MICT to demonstrate that the undertaking
given by its parent company, P&O Ports (Mundra) Private
Limited, with regard to its shareholding in MICT has not been
breached in view of P&O Ports being taken over by the Group (DP
World).
Based on the strong merits of the case and on the advice
received from legal counsel, management believes that the above
litigation is unsubstantiated, and in management's view, it will
have no impact on the Group's ability to continue to operate the
port.
(c) Chennai Port Trust ("CPT") has raised a demand for an amount
of USD 26,738 thousand (2010: USD 26,733 thousand) from Chennai
Container Terminal Limited ("CCTL"), a subsidiary of the company,
on the basis that CCTL has failed to fulfil its obligations in
respect of non-transhipment containers for a period of four
consecutive years from 1 December 2003. CCTL has subsequently paid
USD 14,286 thousand (2010: USD 14,282 thousand) under dispute in
2008. CCTL has commenced legal proceedings at the Chennai High
Court against CPT. Based on advice from the legal counsel,
management believes that the legal proceedings will have no adverse
impact on the Group's financial position; the amount paid is highly
likely to be recovered eventually and will not result in
termination of the license agreement to operate the port.
CPT has raised a demand for an amount of USD 16,841 thousand
(2010: USD 16,841 thousand) from CCTL, towards additional lease
charges for the land leased out to CCTL. Legal proceedings have
been initiated for this matter and the Group believes that this
case will be settled in the Group's favour.
20 Subsequent event
On 20 July 2011, the Group acquired controlling stakes in
Integra Port Services (IPS) and Suriname Port Services (SPS) in
Suriname.
[1] Adjusted EBITDA is Earnings Before Interest, Tax,
Depreciation & Amortization before separately disclosed
items
[2] Leverage is calculated using net debt to annualized adjusted
EBITDA
[3] Consolidated revenue is revenue from all terminals where we
have control as defined under IRFS
[4] The underlying change ex Australia deconsolidation shows
what growth rates and margin would have been had the five terminals
in Australia continued to be consolidated from 12 March 2011
[5] Our portfolio of consolidated terminals includes all
terminals where we have control as defined under IFRS
[6] Like for like container revenue growth at constant currency
excludes the contribution of Callao, Peru which joined the
portfolio in Q2 2010 and shows what growth rates and margin would
have been had the five terminals in Australia not been
deconsolidated from 12 March 2011
[7] Like for like EBITDA at constant currency is treated as
outlined in note 6 above
[8] The underlying change shows what growth rates and margin
would have been had the five terminals in Australia continued to be
consolidated from 12 March 2011
[9] Like for like growth at constant currency excludes the
contribution of Callao, Peru which joined the portfolio in Q2 2010
and shows what growth rates and margin would have been had the five
terminals in Australia not been deconsolidated from 12 March
2011
[10] Interest cover is calculated using EBITDA and net finance
costs before separately disclosed items
[11] Net debt to EBITDA is calculated using annualized EBITDA
including share of profit from joint ventures and associates
This information is provided by RNS
The company news service from the London Stock Exchange
END
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