TIDMDPW
RNS Number : 8914K
DP World Limited
29 August 2012
DP WORLD LIMITED ANNOUNCES RESULTS
For the six months ended 30 June 2012
Reported results before separately disclosed items 2012 H1 2011 H1[1] % change Underlying change[2]
USD thousand
Consolidated[3] throughput (TEU '000) 13,586 13,470 0.9% 5.5%
Revenue 1,529 1,502 1.8% 9.9%
Share of profit from equity-accounted investees 68 74 (8.4%) 5.6%
Adjusted EBITDA[4] 672 645 4.2% 10.6%
Adjusted EBITDA margin 43.9% 42.9% - 43.2%
Profit before tax 310 306 1.5% 12.1%
Profit for the period 283 281 0.6% 9.6%
Profit for the period attributable to owners of the Company 247 246 0.4% 10.8%
------------------------------------------------------------ ------- ---------- -------- --------------------
Ø Strong improvement in revenue to $1,529 million and in
adjusted EBITDA to $672 million in a challenging macroeconomic
environment
Ø Underlying revenue growth of 9.9% exceeds underlying volume
growth of 5.5%
-- Underlying container revenue per TEU up 3.1%, non container revenue up 14.0%
Ø Underlying EBITDA growth of 10.6% with reported EBITDA margin
of 43.9%
Ø Profit attributable to owners of the Company increased to $247
million
-- Underlying profit before separately disclosed items increased by 10.8%
Ø Balance sheet strength maintained; repayment of $3 billion
syndicated loan facility
-- Net debt of $3.5 billion and leverage (net debt to annualized
EBITDA) comfortable at 2.7 times
-- Net cash flow from operations increased to $518 million
Ø Continued investment in quality long-term assets
-- $260 million capital expenditure invested across our portfolio in first six months
-- Development of new capacity at Jebel Ali (UAE) and London
Gateway (UK) have made good progress and remain on track
DP World Group Chairman, Sultan Ahmed Bin Sulayem commented;
"DP World continues to focus on building or enhancing leading
positions in markets which are faster growing or where
infrastructure is insufficient to meet the needs of its customers.
Our long term approach to investment has allowed DP World to build
a global portfolio of container ports, with resilience to the
instability affecting parts of the global economy today, as well as
positioning DP World to be at the forefront of industry growth for
many years to come."
Chief Executive Mohammed Sharaf commented:-
"In a tougher operating environment, we have reported a good set
of results for the first six months, with profit and margin up on
the same period last year. We continue to outperform industry
volume growth; our balance sheet remains strong and allows us to
invest in the future growth of our portfolio.
"I am particularly pleased to see our terminals handle an
increasing number of the largest vessels in response to the
industry trend. The quality of our assets is reflected in our
underlying revenue growth, which again exceeds volume growth. These
robust results show our portfolio is well diversified in today's
more challenging markets, and well placed to continue to outperform
in the future.
"The global economic uncertainty seen in the first half of the
year has continued into the second half. Our portfolio, as we have
seen, continues to show resilience and we remain committed to
delivering an improved operational and financial performance over
2011."
The Chief Executive's Review and Operating and Financial Review
follow from page 3.
Investor Enquiries
Fiona Piper Jasmine Lindsay
DP World Limited DP World Limited
Dubai Mobile: +971561778731 Mobile: +971504220405
UK Mobile: +447919175602 Direct:- +97148080812
Direct: +442079014142
Email: fiona.piper@dpworld.com Email: jasmine.lindsay@dpworld.com
Investor Presentation & Conference Call - 12 noon UAE / 0900
UK
A presentation of the results will take place today in Dubai at
12 noon with dial in details for those unable to attend in person.
The presentation accompanying the conference call will be available
on DP World's website within the investor centre at www.dpworld.com
from 0900 UAE time this morning. A dial in replay will be available
later in the day.
An additional conference call, primarily aimed at debt investors
will be held at 1600 Dubai time (1300 London, 0800 New York) but
all investors are welcome to join.
Forward-Looking Statements
This document contains certain "forward-looking" statements
reflecting, among other things, current views on our markets,
activities and prospects. By their nature, forward-looking
statements involve risk and uncertainty because they relate to
future events and circumstances that may or may not occur and which
may be beyond DP World's ability to control or predict (such as
changing political, economic or market circumstances). Actual
outcomes and results may differ materially from any outcomes or
results expressed or implied by such forward-looking statements.
Any forward-looking statements made by or on behalf of DP World
speak only as of the date they are made and no representation or
warranty is given in relation to them, including as to their
completeness or accuracy or the basis on which they were prepared.
Except to the extent required by law, DP World does not undertake
to update or revise forward-looking statements to reflect any
changes in DP World's expectations with regard thereto or any
changes in information, events, conditions or circumstances on
which any such statement is based.
Chief Executive's Review
DP World strategically focuses investment in markets that are
fast growing or where infrastructure is insufficient to meet the
needs of our customers, both today and in the future.
Our results today reflect the benefits of our previous
investment decisions. Our focus on fast growing markets has
continued to allow us to outperform the industry. Our investment in
the right infrastructure in the right markets has allowed us to
increase utilization and market share as we deliver the capacity
and efficiency to meet the needs of our customers.
After stronger than expected GDP growth of 3.6%[5] in the first
quarter of the year when compared to the same quarter last year,
the second quarter has slowed as the US recovery stalled, the
Eurozone crisis continued with reduced imports and the pace of
growth in China softened.
Our strategy has positioned us with greater resilience to the
instability affecting the global economy. We have limited exposure
to trade flows linked to Europe and North America as they are only
a small part of our overall volume and, whilst growth in China more
generally has softened, we continue to see good growth in this
region as our ports are not as focused on the Europe and North
America trade flows. We also benefited from new capacity in
Qingdao, which has quickly increased utilization since commencing
operations last year.
For 2012, Drewry[6] expects container volumes to grow 4.8% year
over year. DP World has historically outperformed the industry
volume growth by 1.5 times, and to date we have seen no change in
that trend as our gross container volumes grew 7.5% in the first
half of the year, well ahead of the industry forecast.
Our customers, the shipping lines and their underlying
customers, the cargo owners have undertaken significant operational
changes on the Asia to Europe routes in the first six months of
this year, including the use of ultra-large container ships (ULCS -
those above 10,000 TEU). This in turn has led to a cascade of sub
8,000 TEU vessels being deployed on 'smaller' or emerging trade
routes. In turn, cargo owners are increasingly focused on short
lead times and real time inventories, pushing port operators to
improve terminal efficiencies to move goods along the supply chain
more quickly.
In response to these trends, our investment over the last five
years means we are one of the best positioned terminal operators to
meet our customers' needs to handle these larger vessels throughout
our portfolio. In the first half of the year, we have handled
double the number of ultra-large container ships than a year ago.
This has driven higher utilization across our portfolio and
increased our market share.
With the medium term outlook for container volume growth
exceeding the growth in capacity, it is important to continue to
invest in new capacity, whether at existing terminals or in new
terminals in new locations.
In line with our strategy, we continue to focus on ensuring we
are delivering new capacity in a timely manner at both the origin
of, and destination of goods to meet the changing needs of our
customers. Our new developments at London Gateway (UK) and
Rotterdam (Netherlands) will ensure our customers can use their
largest vessels on the Asia to Europe trade routes whilst, the
demand for new port infrastructure in faster growing trade routes
is being met by the expansion of Jebel Ali (UAE) and the new
development in Santos (Brazil). These new developments are on track
to open on time over the next 2-3 years and, once operational will
contribute significantly to the overall profitability of the
Group.
Looking to the future, it is inevitable that trade lanes will
change as, for example, manufacturing continues to move to cheaper
locations and consumers in the emerging markets play a far greater
role in the global demand for goods. We will continue to manage our
portfolio of assets according to these trends and see plenty of
opportunities to further expand our portfolio with an emphasis on
the emerging African and Central / South American geographies.
During the previous downturn in 2008 and 2009 we took proactive
measures to protect our profitability, with many of those cost
reduction measures and efficiency improvements implemented at that
time, continuing to benefit us today. This cost and efficiency
discipline remains across our individual terminals today and,
combined with new revenue generating initiatives; we are well
positioned to protect our profitability, should a prolonged
slowdown in container volumes occur.
Operating and Financial Review
Revenue for the first six months of the year was $1,529 million
and ahead of the same period in the prior year. Underlying volume
growth was 5.5%, with a 3.1% increase in underlying container
revenue per TEU and non-container revenue growth of 14.3%. This
resulted in good underlying revenue improvement of 9.9%. In
addition, we reported adjusted EBITDA of $672 million and profit
attributable to owners of the Company of $247 million, both ahead
of the same period last year.
We have continued to manage our portfolio of assets actively,
adding new capacity and divesting or restructuring assets. This
makes a comparison with the prior period more challenging. Like for
like growth at constant currency, where referenced below, is more
effective at comparing our financial performance as this is without
the addition of (a) new capacity Paramaribo (Suriname) and Qingdao
(China), (b) divested equity-accounted investees Tilbury (UK) and
P&O Trans Australia (POTA) (c) the Australia deconsolidation
whilst also removing the impact of the exchange rate as our
financial results are translated into US dollars for reporting
purposes.
Our share of profit of equity-accounted investees was lower than
the previous period at $68 million as the strong performance from
our portfolio of Asia Pacific terminals was impacted by the
inclusion of our share of loss from the joint venture in the
Australian region, the inclusion of costs associated with Rotterdam
(Netherlands) and Santos (Brazil) and the loss of contribution from
POTA following its disposal in April 2011 and Tilbury (UK) in
January 2012.
As volume and revenue increases, so too does our cost base.
However, we work hard to ensure that our costs do not increase
faster than revenue to continue to drive our EBITDA margin. In the
first half of the year, like for like cost per TEU at constant
currency was maintained at the same levels as last year, once
adjusted for one-off regional costs.
Adjusted EBITDA was $672 million, 10.6% ahead of the same period
last year on an underlying basis with reported EBITDA margin ahead
of the comparative period at 43.9%.
Profit attributable to owners of the Company, before separately
disclosed items, was $247 million. Excluding the deconsolidation of
Australia, underlying profit growth would have been 10.8%.
Like for like[7] revenue growth at constant currency was 10.7%,
well ahead of volume growth of 5.2%, with EBITDA growth slightly
lagging at 9.8% as removing the favourable currency movements on
expenses accentuates the negative impact of the one-off corporate
and regional costs.
During the first six months of the year we invested $260 million
in our portfolio. This investment was focused across our Africa and
Middle East terminals including Jebel Ali (UAE) and Dakar (Senegal)
as well as at London Gateway (UK). This lower than expected
investment in the first half of the year means we will have lower
capital expenditure for the full year, at around $1.1 billion. At
this stage, we still believe our planned investment of $3.7 billion
across the years 2012 to 2014 inclusive remains unchanged.
In April DP World fully repaid and cancelled its $3 billion
syndicated loan facility due to mature in October 2012 using cash
balances. A new 5-year $1 billion facility has been put in place,
and is currently undrawn. Our current leverage (net debt to
annualized EBITDA) is comfortable at 2.7 times.
Middle East, Europe and Africa
The Middle East, Europe and Africa region delivered an excellent
performance with an 18% improvement in adjusted EBITDA and further
improvement in adjusted EBITDA margin to 46.3% as both container
revenue per TEU and non-container revenue increased. This reflects
the strategic positioning of our terminals towards the stronger
economies with a focus on the origin and destination market and
compensates for weaker trade across continental Europe.
USD million 2012 H1 2011 H1 % Change
before separately disclosed
items
Consolidated throughput (TEU
'000) 9,578 9,042 6%
Revenue 1,030 907 14%
Share of profit from equity-accounted
investees 8 9 (5%)
Adjusted EBITDA 477 406 18%
Adjusted EBITDA Margin 46.3% 44.8% -
--------------------------------------- -------- -------- ---------
Revenue was $1,030 million, 14% ahead of the prior period as
container volumes increased 6% and container revenue per TEU
increased 7%. Non-container revenue increased 15% to $233
million.
Our share of profit of equity-accounted investees declined to $8
million primarily because this portfolio is more skewed to
continental European ports where volumes have softened. In
addition, the inclusion of pre-operational costs at Rotterdam
(Netherlands), which began construction during the period, and the
loss of contribution from Tilbury (UK) following divestment in
early 2012 also account for the lower profit in 2012.
Adjusted EBITDA was $477 million, 18% ahead of the same period
last year as the significant improvement in revenue and good cost
management helped drive adjusted EBITDA margin to 46.3%.
Like for like[8] revenue growth at constant currency was 15%
ahead of the prior year and adjusted EBITDA improved by 18%.
The UAE region delivered another solid performance growing
container revenue by 24% and non-container revenue by 22% as the
region as a whole continued to benefit from an improvement in
economic performance, driven by the tourism and retail sectors and
an increase in infrastructure projects, all of which drive growth
in imports and exports.
Investment in our terminals in this region in the first six
months of the year was $231 million. This investment was focused
across our Africa and Middle East terminals including Jebel Ali
(UAE) and Dakar (Senegal) as well as London Gateway (UK). The
expansion of Jebel Ali (UAE) and London Gateway (UK) are on track
to deliver their planned new capacity on schedule.
Asia Pacific and Indian Subcontinent
The Asia Pacific and Indian Subcontinent region reported modest
adjusted EBITDA growth of 1% in the first six months of the year as
the loss of storage revenue in Karachi (Pakistan) and capacity
constraints in India, combined with unfavourable currency
movements, masked a stronger performance from the region.
USD million 2012 H1 2011 H1 % Change
before separately disclosed
items
Consolidated throughput (TEU
'000) 2,823 2,774 2%
Revenue 233 249 (6%)
Share of profit from equity-accounted
investees 62 55 13%
Adjusted EBITDA 159 158 1%
Adjusted EBITDA Margin 68.4% 63.5% -
--------------------------------------- -------- -------- ---------
Revenue was $233 million, 6% lower than the prior period as
container revenue per TEU fell 12% due to a reduction in storage
revenue in Karachi (Pakistan) and the translation impact from
unfavourable currency movements. Non container revenue improved 28%
to $32 million.
Our share of profit of equity-accounted investees increased 13%
to $62 million as we reported solid volume growth in the Asian
Pacific terminals together with the addition of new capacity in
Qingdao (China).
Adjusted EBITDA was $159 million, 1% ahead of the same period
last year as the strong performance from our portfolio of
equity-accounted investees and a focus on cost reduction mitigated
lower revenue with EBITDA margins improving to 68.4%.
Excluding the contribution from new terminal capacity in our
equity-accounted portfolio and unfavourable currency movements,
like for like[9] total revenue growth at constant currency was flat
over the prior year and adjusted EBITDA improved by 1%.
Australia and Americas
Our terminals in the Americas region delivered a strong revenue
performance in the first six months of 2012, which has not been
converted into regional EBITDA growth due to a poor result from our
equity-accounted investees and one-off regional costs.
USD million 2012 2011 H1 % Change Underlying
before separately disclosed H1 % change
items
Consolidated throughput
(TEU '000) 1,185 1,654 (28%) 10%
Revenue 266 347 (23%) 12%
Share of profit from equity-accounted
investees (2) 10 (121%) (22%)
Adjusted EBITDA 77 121 (37%) (2%)
Adjusted EBITDA Margin 28.9% 34.8% - 30.4%
Revenue was $266 million, down on the prior period due to the
deconsolidation of Australian terminals from 12 March 2012, but on
an underlying basis 12% ahead, reflecting a 3% improvement in
container revenue per TEU and an 8% increase in non-container
revenue as terminals in the Americas region performed strongly.
We reported a loss of $2 million on our share of profit of
equity-accounted investees. This was due to the higher interest
costs associated with the new capital structure in relation to our
joint venture in Australia, pre-operational expenses in relation to
our new development in Santos (Brazil) and the exclusion of profit
from P&O Trans Australia (POTA) following its divestment in
April 2011.
Adjusted EBITDA was $77 million, down on a reported basis
against the prior period principally due to the deconsolidation of
Australian terminals. On an underlying basis adjusted EBITDA was 2%
lower than the prior period in part due to a more challenging cost
and inflationary environment in Argentina and the lower
contribution from our share of profit from equity-accounted
investees.
Like for like[10] total revenue growth at constant currency was
7% ahead of the prior year whilst adjusted EBITDA decreased 7%. The
better revenue performance in the Americas region did not translate
to a better EBITDA performance as adjusting for the favourable
currency movement on expenses accentuated the negative impact of
the one-off regional costs.
As announced on 4 July 2012 DP World Australia Pty divested
Adelaide Container Terminal and now owns four terminals in
Australia. DP World continues to operate and manage these four
terminals, whilst retaining a 25% shareholding in DP World
Australia Pty.
Net finance costs
In April 2012, DP World repaid $3 billion of debt using some of
the cash held on the Group's balance sheet, reducing gross debt to
$4.7 billion and reducing cash balances to $1.2 billion.
Net finance costs for the six months were higher than the prior
period at $159 million (2011: $128 million).
The lower cash balances reduced finance income for the period to
$46 million (2011: $67 million). Whilst interest cost increased to
$206 million (2011: $195 million), this was due to the translation
impact of debt at the regional level which is accounted for as an
interest cost. Excluding this, in line with our reduction in gross
debt, our interest cost would have decreased.
Taxation
DP World is not subject to income tax on its UAE operations. The
tax expense relates to the tax payable on the profit earned by
overseas subsidiaries, as adjusted in accordance with the taxation
laws and regulations of the countries in which they operate. For
the first six months of the year, DP World's income tax expense was
$27 million (2011: $24 million).
Profit attributable to non-controlling interests (minority
interest)
Profit attributable to non-controlling interests (minority
interest) was in line with the same period in the prior year at $36
million (2011: $36 million) with a good performance from those
terminals with non-controlling interests, mitigating the change in
accounting at Sydney and Adelaide (Australia) from 12 March 2011
when we stopped accounting for the Australia terminals as
consolidated terminals.
The key terminals where we have non-controlling interests are
CT3 (Hong Kong), Doraleh (Djibouti) and Southampton (UK).
Separately disclosed items
DP World has not reported any separately disclosed items for the
reporting period of the six months to 30 June 2012.
In the first six months of 2011, 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
As at 30 June 2012, earnings per share after separately
disclosed items was 30 US cents. This is significantly lower than
the earnings per share reported for the comparable period, which
included $460 million of separately disclosed profit following the
monetization in Australia.
Net Debt
As at 30 June 2012 our net debt was $3.5 billion. Gross debt
decreased from $7.8 billion to $4.7 billion primarily due to the
repayment of the $3 billion syndicated loan facility. Following
this repayment, bank balances and cash were reduced to $1.2
billion.
Long-term corporate bonds totalled $3.25 billion made up of
$1.75 billion 30 year unsecured MTN due in 2037 and $1.5 billion
10-year unsecured sukuk due in 2017. In addition we have $1.42
billion of debt at the subsidiary level.
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 2012 will be proposed at
the time of the preliminary results in March 2013.
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 2012
Period ended 30 June 2012 Period ended 30 June 2011
Before Separately Before Separately
separately disclosed separately disclosed
disclosed items disclosed items
items items
(Note 5) Total (Note 5) Total
Note USD'000 USD'000 USD'000 USD'000 USD'000 USD'000
(Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited)
Revenue from operations 1,528,627 - 1,528,627 1,502,052 - 1,502,052
Cost of sales (985,078) - (985,078) (999,778) - (999,778)
----------- ------ ----------- ----------- --------- -----------
Gross profit 543,549 - 543,549 502,274 - 502,274
General and
administrative
expenses (149,886) - (149,886) (149,921) (14,974) (164,895)
Other income 8,281 - 8,281 7,364 - 7,364
Share of profit of
equity-accounted
investees (net of tax) 7 67,866 - 67,866 74,095 - 74,095
Profit on sale and
termination
of business (net of tax) - - - - 485,305 485,305
---------- ------ ---------- ---------- --------- ----------
Results from operating
activities 469,810 - 469,810 433,812 470,331 904,143
---------- ------ ---------- ---------- --------- ----------
Finance income 46,177 - 46,177 67,389 - 67,389
Finance costs (205,553) - (205,553) (195,461) (10,770) (206,231)
---------- ------ ---------- ---------- -------- ----------
Net finance costs (159,376) - (159,376) (128,072) (10,770) (138,842)
---------- ------ ---------- ---------- --------- ---------
Profit before tax 310,434 - 310,434 305,740 459,561 765,301
Income tax 8 (27,365) - (27,365) (24,426) - (24,426)
---------- ------ --------- ---------- --------- ---------
Profit for the period 283,069 - 283,069 281,314 459,561 740,875
---------- ------ --------- ---------- --------- ---------
Profit attributable to:
Owners of the Company 246,807 - 246,807 245,719 459,561 705,280
Non-controlling interests 36,262 - 36,262 35,595 - 35,595
---------- ----- ---------- ---------- ---------- ----------
Profit for the period 283,069 - 283,069 281,314 459,561 740,875
====== === ====== ====== ====== ======
Earnings per share
Basic and diluted earnings per share - US cents 29.74 84.97
==== ====
The accompanying notes 1 to 20 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 2012
30 June 2012 30 June 2011
USD'000 USD'000
(Unaudited) (Unaudited)
Profit for the period 283,069 740,875
----------- -----------
Other comprehensive income
Foreign exchange translation differences for foreign operations * (131,310) 201,157
Foreign exchange reserve recycled to the condensed consolidated income statement on
sale of
business - (425,773)
Effective portion of net changes in fair value of cash flow hedges 2,635 893
Change in fair value of available for sale financial assets 2,062 1,883
Change in fair value of cash flow hedges recycled to condensed consolidated income
statement 367 -
Share in other comprehensive income of equity-accounted investees (7,380) 970
Defined benefit plan actuarial gains/ (losses) 6,400 (1,617)
Income tax on other comprehensive income:
Defined benefit plan actuarial gains/ (losses) 1,000 (647)
Fair value of cash flow hedges 4,400 2,263
----------- ----------
Other comprehensive income for the period, net of income tax (121,826) (220,871)
----------- ----------
Total comprehensive income attributable to:
Owners of the Company 135,301 474,141
Non-controlling interests 25,942 45,863
----------- ----------
161,243 520,004
====== ======
* 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.
The accompanying notes 1 to 20 form an integral part of these
condensed consolidated interim financial statements.
DP World Limited and its subsidiaries
Condensed consolidated statement of financial position
As at 30 June 2012
30 June 2012 31 December 2011
Note USD'000 USD'000
(Unaudited) (Audited)
Assets
Non-current assets
Property, plant and equipment 9 5,189,675 5,124,120
Goodwill 10 1,589,906 1,607,655
Port concession rights 10 3,080,776 3,223,958
Investment in equity-accounted
investees 7 3,396,041 3,451,264
Deferred tax assets 105,707 101,212
Other investments 70,460 73,193
Accounts receivable and
prepayments 267,091 260,114
-------------- --------------
Total non-current assets 13,699,656 13,841,516
-------------- --------------
Current assets
Inventories 56,019 54,979
Accounts receivable and
prepayments 675,188 624,020
Bank balances and cash 11 1,161,348 4,159,364
Assets held for sale 12 - 77,706
------------ -------------
Total current assets 1,892,555 4,916,069
-------------- --------------
Total assets 15,592,211 18,757,585
======== =========
DP World Limited and its subsidiaries
Condensed consolidated statement of financial position
(continued)
As at 30 June 2012
31 December
30 June 2012 2011
Note USD'000 USD'000
(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 2,414,771 2,367,164
Hedging and other reserves (104,203) (104,408)
Actuarial reserve (342,802) (352,402)
Translation reserve (707,866) (586,555)
------------ --------------
Total equity attributable to
owners of the Company 7,392,555 7,456,454
Non-controlling interests 749,290 765,013
------------ --------------
Total equity 8,141,845 8,221,467
------------ --------------
Liabilities
Non-current liabilities
Deferred tax liabilities 1,051,134 1,078,355
Employees' end of service benefits 53,524 49,393
Pension and post-employment
benefits 217,515 235,750
Interest bearing loans and
borrowings 15 4,506,583 4,563,309
Accounts payable and accruals 465,815 467,240
------------ -------------
Total non-current liabilities 6,294,571 6,394,047
------------ -------------
Current liabilities
Income tax liabilities 177,124 169,585
Bank overdrafts 11 686 1,017
Pension and post-employment
benefits 11,782 12,621
Interest bearing loans and
borrowings 15 162,982 3,178,446
Accounts payable and accruals 803,221 780,402
------------ -------------
Total current liabilities 1,155,795 4,142,071
------------ --------------
Total liabilities 7,450,366 10,536,118
-------------- --------------
Total equity and liabilities 15,592,211 18,757,585
======== =========
The accompanying notes 1 to 20 form an integral part of these
condensed consolidated interim financial statements.
DP World Limited and its subsidiaries
Condensed consolidated statement of changes in equity
For the six months ended 30 June 2012
Attributable to equity holders of the Company
Hedging
Share Share Shareholders' Retained and 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
2012 1,660,000 2,472,655 2,000,000 2,367,164 (104,408) (352,402) (586,555) 7,456,454 765,013 8,221,467
------------ ------------ ------------ ------------ --------- ---------- --------- ------------ ---------- ------------
Total
comprehensive
income
for the
period:
Profit for the
period - - - 246,807 - - - 246,807 36,262 283,069
Total other
comprehensive
income, net
of tax - 205 9,600 (121,311) (111,506) (10,320) (121,826)
---------- ---------- ---------- ---------- --------- -------- ---------- ---------- -------- ----------
Total
comprehensive
income
for the
period - - - 246,807 205 9,600 (121,311) 135,301 25,942 161,243
---------- ---------- ---------- ---------- --------- -------- ---------- ---------- -------- ----------
Transactions
with owners,
recognised
directly in
equity
Dividends paid
(refer
to note 14) - - - (199,200) - - - (199,200) - (199,200)
---------- ---------- ---------- ---------- -------- ---------- -------- ---------- --------- ----------
Total
transactions
with
owners - - - (199,200) - - - (199,200) - (199,200)
---------- ---------- ---------- ---------- -------- ---------- -------- ---------- --------- ----------
Transactions
with non
controlling
interests,
recognised
directly in
equity
Dividends paid - - - - - - - - (41,665) (41,665)
---------- ---------- ---------- ---------- --------- ---------- ---------- ---------- -------- -----------
Total
transactions
with
non
controlling
interests - - - - - - - - (41,665) (41,665)
------------ ------------ ------------ ------------ --------- ---------- ---------- ------------ --------- --------------
Balance as at
30 June
2012 1,660,000 2,472,655 2,000,000 2,414,771 (104,203) (342,802) (707,866) 7,392,555 749,290 8,141,845
======= ======= ======= ======= ====== ====== ====== ======= ====== =======
The accompanying notes 1 to 20 form an integral part of these
condensed consolidated interim financial statements.
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
Share Share Shareholders' Retained and 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,
recognised
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,
recognised
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
======= ======= ======= ======= ===== ====== ====== ======= ====== =======
The accompanying notes 1 to 20 form an integral part of these
condensed consolidated interim financial statements.
DP World Limited and its subsidiaries
Condensed consolidated statement of cash flows
For the six months ended 30 June 2012
30 June
30 June 2012 2011
Note USD'000 USD'000
(Unaudited) (Unaudited)
Cash flows from operating activities
Profit for the period 283,069 740,875
Adjustments for:
Depreciation and amortisation 201,895 210,689
Impairment 5 - 14,974
Share of profit from equity-accounted
investees, net of tax 7 (67,866) (74,095)
Finance costs 205,553 206,231
Income tax expenses 27,365 24,426
Loss/ (gain) on disposal of property,
plant and equipment 9 939 (97)
Profit on sale and termination of
business, net of tax 5 - (485,305)
Finance income (46,177) (67,389)
---------- ----------
Gross cash flow from operations 604,778 570,309
Change in inventories (1,303) (3,302)
Change in accounts receivable and
prepayments (33,224) 32,918
Change in accounts payable and accruals (12,693) (129,884)
Changes in provisions, pension and
post-employment benefits (3,022) (5,409)
---------- ----------
Cash generated from operating activities 554,536 464,632
Income taxes paid (36,637) (37,003)
---------- ----------
Net cash from operating activities 517,899 427,629
---------- ----------
Cash flows from investing activities
Additions to property, plant and
equipment 9 (252,837) (222,013)
Additions to port concession rights 10 (7,568) (16,766)
Proceeds from disposal of property,
plant and equipment 5,409 16,873
Proceeds from monetisation of investment
in subsidiaries - 1,476,093
Cash outflow on monetisation of
investment in subsidiaries - (71,444)
Proceeds from disposal of investment
in equity-accounted investees 62,712 111,230
Dividends received from equity-accounted
investees 64,992 43,573
Additional investment in equity-accounted
investees (6,695) (5,422)
Net loan given to equity-accounted
investees (2,500) (54,857)
Interest received 47,633 74,841
--------- ------------
Net cash (used in)/ from investing
activities (88,854) 1,352,108
--------- ------------
DP World Limited and its subsidiaries
Condensed consolidated statement of cash flows (continued)
for the six months ended 30 June 2012
30 June 30 June
2012 2011
USD'000 USD'000
Note (Unaudited) (Unaudited)
Cash flows from financing activities
Repayment of interest bearing loans
and borrowings (3,099,291) (93,353)
Drawdown of interest bearing loans
and borrowings 45,309 162,045
Dividend paid to the owners of the
Company 14 (199,200) (142,760)
Dividends paid to non-controlling
interests (41,665) (32,849)
Interest paid (131,457) (153,246)
------------ -----------
Net cash used in financing activities (3,426,304) (260,163)
------------ -----------
Net (decrease)/ increase in cash and
cash equivalents (2,997,259) 1,519,574
Cash and cash equivalents as at 1
January 4,158,347 2,516,616
Cash classified as held for sale as
at 1 January - 50,900
Effect of exchange rate fluctuations
on cash held (426) 26,224
------------- -------------
Cash and cash equivalents as at 30
June 1,160,662 4,113,314
======= =======
The accompanying notes 1 to 20 form an integral part of these
condensed consolidated interim financial statements.
DP World Limited and its subsidiaries
Notes
(forming an integral part of the 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
interim financial statements of the Company for the period ended 30
June 2012 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 with effect from 26 November 2007. The Company was
further admitted to trade 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 have
been prepared in accordance with International Accounting Standard
34, Interim Financial Reporting. Selected explanatory notes are
included to explain events and transactions that are significant to
an understanding of the changes in financial position and
performance of the Group since the last annual consolidated
financial statements as at and for the year ended 31 December 2011.
These condensed consolidated interim financial statements do not
include all of the information required for full annual
consolidated financial statements prepared in accordance with
International Financial Reporting Standards.
The condensed consolidated interim financial statements were
approved by the Board of Directors on __ August 2012.
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 2011.
4 Accounting judgements and estimates
The preparation of the condensed consolidated 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 2011.
5 Separately disclosed items
Six months Six months ended
ended 30 June 30 June 2011
2012
USD '000 USD'000
(Unaudited) (Unaudited)
Impairment - (14,974)
Profit on sale and termination of
business - 485,305
Loss on currency options - (10,770)
------- ----------
- 459,561
==== ======
Impairment 2012 : Nil (2011: USD 14,974 thousand represents a
provision against the investment in an equity accounted investee in
the 'Middle East, Europe and Africa' region)
Profit on sale and termination of business 2012 : Nil (2011:
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).
Loss on currency options 2012 : Nil(2011: represents USD 10,770
thousand loss on foreign currency options related to the 'Australia
and Americas' region).
6 Segment information
Based on the internal management reports (prepared under IFRS)
that are reviewed by the Board of Directors ('Chief Operating
Decision Maker') based on the location of the Group's assets and
liabilities, the Group has identified the following 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").
-- Asia Pacific and Indian subcontinent
-- Australia and Americas
-- Middle East, Europe and Africa
Each of these operating segments have an individual appointed as
Segment Director responsible for these segments, who in turn
reports to the Chief Operating Decision Maker. Information
regarding the results of each reportable segment is included
below.
The following table presents certain results, assets and
liabilities information regarding the Group's operating segments as
at the reporting date.
Asia Pacific Australia and Middle East, Europe
and Indian subcontinent Americas and Africa Head office Inter-segment Total
Six months ended Six months ended Six months ended Six months ended Six months ended Six months ended
30 June 30 June 30 June 30 June 30 June 30 June
2012 2011 2012 2011 2012 2011 2012 2011 2012 2011 2012 2011
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 232,920 248,579 265,525 346,665 1,030,182 906,808 - - - - 1,528,627 1,502,052
====== ====== ====== ====== ====== ====== ===== ===== === === ======= =======
Segment
results
from
operations
* 114,058 105,357 37,206 575,676 362,653 265,505 (71,472) (66,821) - - 442,445 879,717
Finance
income - - - - - - 46,177 67,389 - - 46,177 67,389
Finance
cost - - - - - - (205,553) (206,231) - - (205,553) (206,231)
--------- --------- --------- --------- ---------- ---------- ---------- ---------- ----- ----- ----------- ----------
Profit/
(loss)
for the
period 114,058 105,357 37,206 575,676 362,653 265,505 (230,848) (205,663) - - 283,069 740,875
===== ===== ===== ===== ====== ====== ====== ====== === === ====== ======
* 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.
6 Segment information (continued)
Asia Pacific Australia and Middle East, Europe
and Indian subcontinent 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
2012 2011 2012 2011 2012 2011 2012 2011 2012 2011 2012 2011
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 4,988,252 5,076,106 1,813,970 1,847,887 9,089,976 8,031,636 8,150,865 11,185,296 (8,450,852) (7,383,340) 15,592,211 18,757,585
======= ======= ======= ======= ======= ======= ======= ======= ======= ======= ======== ========
Segment
liabilities 422,985 422,189 217,489 227,370 1,432,034 1,414,480 5,802,256 7,810,438 (1,652,656) (586,299) 6,222,108 9,288,178
Tax
liabilities
* - - - - - - 1,228,258 1,247,940 - - 1,228,258 1,247,940
---------- ---------- --------- ---------- ------------ ------------ ------------ ------------ ------------ ---------- ------------ --------------
Total
liabilities 422,985 422,189 217,489 227,370 1,432,034 1,414,480 7,030,514 9,058,378 (1,652,656) (586,299) 7,450,366 10,536,118
====== ====== ===== ====== ======= ======= ======= ======= ======= ====== ======= ========
Asia Pacific Australia and Middle East, Europe
and Indian subcontinent Americas and Africa Head office Inter-segment Total
Six months ended Six months ended Six months ended Six months ended Six months ended Six months ended
30 June 30 June 30 June 30 June 30 June 30 June
2012 2011 2012 2011 2012 2011 2012 2011 2012 2011 2012 2011
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) 2,357 5,749 25,857 61,861 230,805 170,537 1,386 632 - - 260,405 238,779
==== ===== ===== ===== ====== ====== === === ==== ==== ====== ======
Depreciation 15,734 24,213 35,872 26,472 93,374 95,182 2,569 2,216 - - 147,549 148,083
===== ===== ===== ===== ===== ===== ==== ==== ==== ==== ===== ======
Amortisation/
impairment 29,517 28,304 3,639 3,970 21,190 45,306 - - - - 54,346 77,580
===== ===== ==== ==== ===== ===== ==== ==== ==== ==== ===== =====
Share
of profit/
loss of
equity
accounted
investees
before
separately
disclosed
items 61,862 54,974 (2,239) 10,463 8,243 8,658 - - - - 67,866 74,095
===== ===== ==== ===== ==== ==== ===== ==== ==== ==== ===== =====
Tax expense
* - - - - - - 27,365 24,426 - - 27,365 24,426
===== ===== ===== ===== ==== ==== ===== ===== ==== ==== ===== =====
* Tax liabilities and tax expense from various geographical
locations and head office have been grouped under head office.
6 Segment information (continued)
Earnings before separately disclosed items, interest, tax,
depreciation and amortisation ("Adjusted EBITDA")
Asia Pacific Australia and Middle East, Europe
and Indian subcontinent Americas and Africa Head office Inter-segment Total
Six months ended Six months ended Six months ended Six months ended Six months ended Six months ended
30 June 30 June 30 June 30 June 30 June 30 June
2012 2011 2012 2011 2012 2011 2012 2011 2012 2011 2012 2011
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 232,920 248,579 265,525 346,665 1,030,182 906,808 - - - - 1,528,627 1,502,052
====== ====== ====== ====== ====== ====== ===== ===== ====== ===== ======= =======
Adjusted
EBITDA 159,309 157,874 76,717 120,813 477,217 405,993 (41,538) (40,179) - - 671,705 644,501
Finance
income - - - - - - 46,177 67,389 - - 46,177 67,389
Finance
costs - - - - - - (205,553) (195,461) - - (205,553) (195,461)
Tax expense - - - - - - (27,365) (24,426) - - (27,365) (24,426)
Depreciation
and
amortisation (45,251) (52,517) (39,511) (30,442) (114,564) (125,514) (2,569) (2,216) - - (201,895) (210,689)
--------- --------- --------- --------- ---------- ---------- -------- -------- --------- ------ ----------- ----------
Adjusted
net profit/
(loss)
for the
period
before
separately
disclosed
items 114,058 105,357 37,206 90,371 362,653 280,479 (230,848) (194,893) - - 283,069 281,314
Adjusted
for
separately
disclosed
items - - - 485,305 - (14,974) - (10,770) - - - 459,561
---------- --------- --------- --------- ---------- ---------- --------- --------- ------- ------- ---------- ----------
Profit/
(loss)
for the
period 114,058 105,357 37,206 575,676 362,653 265,505 (230,848) (205,663) - - 283,069 740,875
====== ===== ===== ===== ====== ====== ===== ====== ==== ==== ====== ======
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 Middle East, Europe
sub-continent Australia and Americas and Africa Total
30 June 31 December 30 June 31 December 30 June 31 December 30 June 31 December
2012 2011 2012 2011 2012 2011 2012 2011
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 927,692 492,575 511,168 425,910 366,197 316,072 1,805,057 1,234,557
Non-current assets 7,700,488 7,533,647 2,828,087 2,799,767 2,232,320 2,311,415 12,760,895 12,644,829
------------ ------------ ------------ ------------ ------------ ------------ -------------- -------------
Total assets 8,628,180 8,026,222 3,339,255 3,225,677 2,598,517 2,627,487 14,565,952 13,879,386
======= ======= ======= ======= ======= ======= ======== ========
Current
liabilities 713,225 511,661 225,974 236,265 244,146 181,051 1,183,345 928,977
Non-current
liabilities 2,116,137 1,528,068 1,676,706 1,458,954 825,618 841,070 4,618,461 3,828,092
------------ ------------ ------------ ---------- ------------ ------------ ------------ ------------
Total liabilities 2,829,362 2,039,729 1,902,680 1,695,219 1,069,764 1,022,121 5,801,806 4,757,069
======= ======= ======= ====== ======= ======= ======= ========
Six months ended 30 Six months ended Six months ended Six months ended 30
June 30 June 30 June June
2012 2011 2012 2011 2012 2011 2012 2011
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 624,475 573,967 429,062 422,035 327,192 320,973 1,380,729 1,316,975
Expenses (479,329) (442,987) (454,091) (404,042) (293,809) (289,182) (1,227,229) (1,136,211)
---------- ---------- --------- ---------- --------- --------- ----------- ------------
Net profit 145,146 130,980 (25,029) 17,993 33,383 31,791 153,500 180,764
====== ===== ===== ===== ===== ==== ====== ======
The Group's share of profit of equity-accounted investees (before separately
disclosed items) for the six months period ended 30 June 2012/ 30 June 2011 67,866 74,095
===== ======
The Group's investment in net assets of equity-accounted investees as at 30
June 2012/ 31 December 2011 3,396,041 3,451,264
======= ========
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 2012 30 June 2011
(Unaudited) (Unaudited)
Before separately disclosed
items 13.15% 13.00%
Including separately disclosed
items 13.15% 14.10%
===== ======
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 months period ended 30 June 2012, the Group
acquired assets amounting to USD 252,837 thousand (30 June 2011:
USD 222,013 thousand).
The depreciation on property, plant and equipment during the six
months period ended 30 June 2012 amounted to USD 147,549 thousand
(30 June 2011: USD 148,083 thousand).
Assets with a net carrying amount of USD 6,348 thousand were
disposed by the Group during the six months ended 30 June 2012 (30
June 2011: USD 16,776 thousand), resulting in a loss on disposal of
USD 939 thousand (30 June 2011: profit of USD 97 thousand).
10 Goodwill and port concession rights
Goodwill
During the six months period ended 30 June 2012, the movement in
goodwill represents the impact of foreign currency translation of
USD 17,749 thousand (30 June 2011: USD 31,973 thousand).
Port concession rights
During the six months period ended 30 June 2012, the Group
acquired port concession rights amounting to USD 7,568 thousand (30
June 2011: USD 16,766 thousand).
The amortization of port concession rights during the six months
period ended 30 June 2012 amounted to USD 54,346 thousand (30 June
2011: USD 62,606 thousand).
11 Bank balances and cash
30 June 2012 31 December 2011
USD'000 USD'000
(Unaudited) (Audited)
Cash at banks and in hand 380,726 468,673
Short-term deposits 729,058 3,637,270
Deposits under lien 51,564 53,421
------------- -------------
Bank balances and cash 1,161,348 4,159,364
Bank overdrafts (686) (1,017)
------------- -------------
Cash and cash equivalents 1,160,662 4,158,347
======= ========
The Group has utilised its existing cash resources for repayment
of interest bearing loans and borrowings (refer to note 15).
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 payable on demand.
12 Assets and liabilities held for sale
30 June 2012 31 December 2011
USD'000 USD'000
(Unaudited) (Audited)
Assets held for sale
Middle East, Europe and Africa - 77,706
===== =====
The balance at 31 December 2011 mainly includes investment in
Tilbury Container Services Limited which was disposed in January
2012.
13 Share capital
The share capital of the Company is as follows:
30 June 2012 31 December 2011
USD'000 USD'000
(Unaudited) (Audited)
Authorised
1,250,000,000 ordinary shares
of USD 2.00 each 2,500,000 2,500,000
======= ========
Issued and fully paid
830,000,000 ordinary shares of
USD 2.00 each 1,660,000 1,660,000
======= =======
14 Dividends paid
Dividends relating to 2011 amounting to USD 199,200 thousand was
paid during the period ended 30 June 2012 (30 June 2011: USD
142,760 thousand).
15 Interest bearing loans and borrowings
The Group's interest bearing loans and borrowings are as
follows:
30 June 2012 31 December 2011
USD'000 USD'000
(Unaudited) (Audited)
Non-current liabilities
Secured bank loans 665,383 720,482
Mortgage debenture stocks 2,210 2,212
Unsecured loan stock 5,065 5,071
Unsecured bank loans 555,319 552,842
Unsecured bond issues 3,236,264 3,235,320
Finance lease liabilities 42,342 47,382
------------ -------------
4,506,583 4,563,309
------------ -------------
Current liabilities
Secured bank loans 111,124 100,242
Unsecured bank loans 37,909 3,062,653
Unsecured loans 3,550 3,619
Finance lease liabilities 10,399 11,932
---------- -----------
162,982 3,178,446
------------ -------------
Total 4,669,565 7,741,755
======= ========
Apart from bank loans, there has been no issuance or repayment
of debt securities in the current period (2011: Nil).
The Group has utilised its existing cash resources to repay USD
3 billion outstanding under its revolving credit facility which
would have matured in October 2012 by repaying USD 2.6 billion on 4
April 2012 and USD 0.4 billion on 10 April 2012.
16 Transactions with related parties
Transactions with related parties included in the condensed
consolidated interim financial statements are as follows:
30 June 2012
Ultimate Parent Equity-accounted Other related
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 - - 5,229 5,229
Other recharges - - 10,396 10,396
Revenue earned from
related parties:
Management fee income - 11,201 - 11,201
===== ===== ===== =====
30 June 2011
Ultimate Parent Equity-accounted Other related
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
==== ===== ===== =====
Compensation of key management personnel
The remuneration of directors and other key members of the
management during the period were as follows:
Six months ended 30 June
2012 2011
USD'000 USD'000
Short-term benefits and bonus 5,207 5,004
Post-retirement benefits 402 399
------- -------
5,609 5,403
==== =====
16 Transactions with related parties (continued)
Balances with related parties included in the condensed
consolidated interim statement of financial position are as
follows:
30 June 2012 31 December 2011
USD'000 USD'000
Due from related parties: (Unaudited) (Audited)
Ultimate Parent Company 2,765 2,730
Parent Company 54,130 54,154
Equity-accounted investees 226,438 232,052
Other related parties 26,028 21,693
---------- ----------
309,361 310,629
====== ======
30 June 2012 31 December 2011
USD'000 USD'000
Due to related parties: (Unaudited) (Audited)
Equity-accounted investees 444 386
Other related parties 11,017 11,886
-------- ---------
11,461 12,272
===== =====
17 Operating leases
Operating lease commitments - Group as a lessee
Future minimum rentals payable under non-cancellable operating
leases are as follows:
30 June 2012 31 December 2011
USD'000 USD'000
(Unaudited) (Audited)
Within one year 230,382 192,961
Between one and five years 711,599 711,097
Between five to ten years 1,054,319 1,086,178
Between ten to twenty years 1,401,994 1,398,808
Between twenty to thirty years 1,256,497 1,357,630
Between thirty to fifty years 1,185,997 1,201,046
Between fifty to seventy years 1,054,040 1,063,338
More than seventy years 1,097,890 1,075,017
------------ --------------
7,992,718 8,086,075
======= ========
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.
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 2012 31 December 2011
USD'000 USD'000
(Unaudited) (Audited)
Within one year 19,587 22,691
Between one to five years 66,355 75,966
More than five years 44,191 25,887
---------- -----------
130,133 124,544
====== ======
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 2012 31 December 2011
USD'000 USD'000
(Unaudited) (Audited)
Estimated capital expenditure contracted
for at the reporting date 572,916 538,383
====== ======
19 Contingent liabilities
(a) The Group has the following contingent liabilities in respect of guarantees issued:
30 June 2012 31 December 2011
Type of guarantee USD'000 USD'000
(Unaudited) (Audited)
Payment guarantees 58,424 99,491
Performance guarantees 101,509 82,117
Letters of credit 180 195
Guarantees issued on behalf of
equity-accounted investees 93,736 12,020
====== ======
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 21,498 thousand (2011: USD 22,548 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 11,486 thousand (2011: USD 12,047 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.
20 Subsequent event
On 4 July 2012, DP World Australia Limited, in which the Group
has a 25% shareholding, has sold all of its 60% shareholding in
Adelaide Container Terminal Pty Ltd for USD 138,000 thousand.
- END -
[1]2011 results include the Australia terminals as consolidated
until 11 March 2011 and as share of profit from equity-accounted
investees from 12 March 2011.
[2] The underlying change shows what growth rates and margin
would have been had the five terminals in Australia been
consolidated in DP World's accounts from 1 January 2012 to 11 March
2012 and allows for a better comparison to the prior period
[3] Consolidated throughput is throughput from all terminals
where we have control as defined under IFRS.
[4] Adjusted EBITDA is Earnings before Interest, Tax,
Depreciation & Amortisation including share of profit from
equity-accounted investees before separately disclosed items.
[5] World Economic Outlook, IMF July 2012
[6] Global Container Terminal Operators 2012, Drewry Maritime
Research
[7] Like for like growth at constant currency is more effective
for comparing our financial performance as this is without the
addition of (a) new capacity Paramaribo (Suriname) and Qingdao
(China), (b) divested equity-accounted investees Tilbury (UK) and
P&O Trans Australia (POTA) (c) the Australia deconsolidation
whilst also removing the impact of the exchange rate as our
financial results are translated into US dollars for reporting
purposes.
[8] Like for like comparisons in the Middle East, Europe and
Africa region adjusts for the sale of Tilbury (UK) in our share of
profit from equity-accounted investees and adverse currency
movements.
[9] Like for like comparisons in the Asia Pacific and Indian
Subcontinent Region remove the new terminal in Qingdao (China) and
adjusted for adverse currency movements.
[10] Like for like comparisons in the Australia and Americas
region adjusts for new terminal Paramaribo (Suriname), the
deconsolidation of the Australian terminals, the sale of POTA and
adjusts for adverse currency movements.
Click on, or paste the following link into your web browser, to
view the associated PDF document.
http://www.rns-pdf.londonstockexchange.com/rns/8914K_-2012-8-28.pdf
This information is provided by RNS
The company news service from the London Stock Exchange
END
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