TIDMDPW
RNS Number : 3971A
DP World Limited
20 March 2013
DP WORLD LIMITED ANNOUNCES STRONG FINANCIAL RESULTS
For the year ended 31 December 2012
Dubai, United Arab Emirates, 20 March, 2013: Global marine
terminal operator DP World today announces strong financial results
from its global portfolio of marine terminals for the twelve months
to 31 December 2012, delivering profit attributable to owners of
the Company before separately disclosed items of $555 million, 21%
ahead of last year.
Financial results 2012 2011 % change
before separately disclosed items unless
stated[1]
USD million (unless stated)
----------------------------------------------- --------- --------- --------
Gross throughput[2] (TEU '000) 56,076 54,737 2%
----------------------------------------------- --------- --------- --------
Consolidated throughput([3]) (TEU '000) 27,097 27,471 (1%)
----------------------------------------------- --------- --------- --------
Revenue 3,121 2,978 5%
----------------------------------------------- --------- --------- --------
Adjusted EBITDA([4]) 1,407 1,307 8%
----------------------------------------------- --------- --------- --------
Adjusted EBITDA margin 45.1% 43.9% -
----------------------------------------------- --------- --------- --------
Profit for the year attributable to owners
of the Company 555 459 21%
----------------------------------------------- --------- --------- --------
Profit for the year attributable to owners
of the Company after separately disclosed
items 749 683 10%
----------------------------------------------- --------- --------- --------
Earnings per Share (US cents) after separately
disclosed item 90 cents 82 cents 10%
----------------------------------------------- --------- --------- --------
Ordinary dividend per share 21 cents 19 cents 10%
Special dividend per share 3 cents 5 cents (36%)
Total dividend per share (US cents) 24 cents 24 cents 0%
----------------------------------------------- --------- --------- --------
Our results reflect a very strong performance from those
terminals which were operational within our portfolio for the
duration of the year. Year over year growth was impacted by the
monetisation of assets from the Australia, Europe and Middle East
region. Excluding all these changes in our portfolio, revenue
growth would have been 8% and adjusted EBITDA growth would have
been 11%.
Ø Revenue of $3,121 million
-- Container revenue increased 2.4% driven by a 4% increase in
container revenue per TEU in spite of the 1% decline in container
volumes
-- Non-container revenue increased 14%
Ø Adjusted EBITDA of $1,407 million; adjusted EBITDA margin of
45.1%
-- A focus on higher revenue, higher margin business improved
adjusted EBITDA margin
Ø Profit for the year attributable to owners of the Company[5]
of $555 million
-- Strong adjusted EBITDA growth and lower net debt delivered
21% increase in profit
Ø Active management of portfolio to recycle capital into faster
growing strategic markets
-- Realised $249 million profit from monetisation of assets
during the year which helped drive profit attributable to owners of
the Company after separately disclosed items of $749 million
Ø Strong cash generation and balance sheet remains robust
-- Net cash from operating activities increased to $1,231
million
-- Leverage (Net Debt to adjusted EBITDA) reduced to 2.0
times
-- The Hong Kong transactions, announced on 7 March 2013, will
further reduce our leverage
Ø Continued investment in quality long-term assets to drive
long-term profitable growth
-- $685 million invested across the portfolio in 2012
-- Key developments at Jebel Ali (UAE), Embraport (Brazil) and
London Gateway (UK) remain on track to open later this year as
scheduled
Ø Earnings per share, after separately disclosed items,
increased 10% to US 90 cents
Ø Total dividend per share of 24 US cents
-- Ordinary dividend of 21 US cents per share, 10% ahead of the
prior year
-- Special dividend of 3 US cents per share
DP World Chairman, Sultan Ahmed Bin Sulayem commented;
"DP World delivered increased profit for the year of $749
million[6] following a strong year of operational performance from
its global operations, prudent financial management and proactive
management of assets, whilst continuing to invest in the future
growth of the Company.
"Delivering an improvement in profits during what has been a
challenging operating environment shows that our portfolio is
focused on the right markets, and on delivering the right
operations and service to our customers.
"This year, we have continued to actively manage our portfolio
to maximum advantage, divesting non-core or low return assets, and
repaying debt. This has enabled us to move capital into those
markets where we see more profitable returns whilst significantly
reducing our leverage and strengthening our capital base.
"We are in the midst of a large investment programme that ends
in 2014. During this time, not only will we deliver another 10
million TEU of capacity across our global portfolio helping to
drive profitable growth, but our cash generation will continue to
grow strongly.
"It is our actions today, whether investing for growth, actively
managing our portfolio of assets or strengthening our balance sheet
that will allow us to deliver higher returns for our shareholders
over the medium term.
"Reflecting this strong performance, combined with the
realisation of profit from the monetisation of assets during the
year, the Board of DP World is recommending total dividend of $199
million, or 24 US cents per share. This comprises a 10% increase in
the ordinary dividend to 21 cents paid with a special dividend of 3
cents. The Board is confident of the Company's ability to continue
to generate cash and support our future growth whilst maintaining a
consistent dividend payout."
DP World Group Chief Executive, Mohammed Sharaf commented;
"In 2012 we have focused on our existing operations through the
delivery of exceptional customer service from improved efficiencies
in our terminals. This has allowed us to deliver good revenue
growth and manage costs, resulting in a significant improvement in
adjusted EBITDA margin to 45.1%.
"Whilst the operating environment has remained challenging in
some of our regions, it is the strength of our operations in
Africa, Middle East, South America and Asia which has supported our
improvement in adjusted EBITDA to $1,407 million.
"Last year was also an important period in terms of progressing
the delivery of four major development projects around the world.
The first of these will come on stream in the next few months at
Jebel Ali (UAE), with Embraport (Brazil) and London Gateway (UK)
opening later this year. The fourth, the new terminal at Jebel Ali,
is well underway and set to open next year.
"Operating conditions in each of our markets in the first two
months of 2013 have been consistent with those experienced at the
end of last year and the economic environment continues to remain
uncertain.
"We remain confident about the long term outlook of our industry
and remain well positioned to deal with a changing economic
environment as well as continue to focus on our established high
standards of service to customers."
- END -
The Chairman's Statement, Operating and Financial Review and
Financial Statements follow from page 5.
Investor Inquiries
Fiona Piper Jasmine Lindsay
DP World Limited DP World Limited
Dubai Mobile: +971561778731 Direct: +97148080812
UK Mobile: +447919175602 Mobile: +971504220405
Email: Fiona.piper@dpworld.com Email: jasmine.lindsay@dpworld.com
12 Noon Conference Call and Analyst / Investor Meeting in Dubai,
UAE
1) Meeting for analysts and investors hosted by CEO Mohammed
Sharaf and CFO Yuvraj Narayan in Dubai, UAE at 1200 noon on
Wednesday 20 March at DIFC Conference Centre, The Gate Building 4.
Those unable to attend in person can join the meeting by conference
call (0900 London).
2) An additional conference Call will be hosted at 1600 Dubai
time (1200 London, 0800 New York) on Wednesday 20 March 2013.
3) A playback of the call will be available shortly after the 12
noon conference call concludes. 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 this morning.
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.
Chairman's Statement
Delivering an improvement in profits during what has been a
challenging operating environment shows that our portfolio is
focused on the right markets, and on delivering the right
operations and service to our customers.
This year, we have continued to actively manage our portfolio,
managing our assets to maximum advantage, divesting non-core or low
return assets, and repaying debt. This has enabled us to move
capital into those markets where we see more profitable returns
whilst significantly reducing our leverage and strengthening our
capital base.
This has all been achieved without compromising our global
network or compromising our focus on delivering world class
customer service. When taking into account profit from divestments
and monetisations, the profit attributable to owners of the Company
was $749 million.
We continue to invest in our portfolio with an additional 10
million TEU becoming operational during 2013 and 2014. This new
capacity will come into markets where there is significant demand
for container terminal capacity, such as Brazil and the UAE, or
where the existing infrastructure is insufficient to meet the
changing requirements of our customers, for example in the UK and
the Netherlands.
Progress against Strategy
DP World continues to make good progress towards the delivery of
our strategy. With our focus on incremental revenue generation and
improving operational efficiencies, as well as delivering new
capacity, we will drive profitable growth and deliver our
longer-term objective of improving returns.
Following another strong performance in 2012, we remain on track
to reach global capacity of 100 million TEU, 50% adjusted EBITDA
margin and 15% return on capital employed[7] over the medium-term,
whilst retaining a strong capital base. We have gross capacity of
70 million with utilisation rates in excess of 80%. In 2012, we
reported an increase in adjusted EBITDA margin to 45.1% and further
improvement in return on capital employed to 6.8%.
DP World has invested more than $6 billion to add over 20
million TEU of operational capacity over the past five to six years
and a further 10 million TEU will be added in the next two years.
Today's results are diluted by this significant investment.
However, we will see further improvement as this capacity matures
and as we continue to focus on price improvements, cost management
and efficiencies across the remainder of our portfolio.
Our balance sheet remains very strong. With another year of
strong cash performance, net cash flow from operations increased to
$1,231 million. The improvement in cash flow combined with the
proceeds of divestments or monetisations during 2012 has resulted
in lower net debt of $2,871 million as at 31 December 2012. Our
leverage (net debt to adjusted EBITDA) remains low at 2.0 times,
which gives us the flexibility to continue to invest in new
opportunities whilst retaining a strong capital base.
In line with our strategy, DP World is focused on investing for
the long term capacity requirements of our customers, whether it is
in developed markets which do not have the efficiencies or
capabilities to handle the increasing size of vessels, or in
developing markets, which have limited container port capacity to
meet their growing needs.
New projects at Embraport (Brazil), London Gateway (UK),
Rotterdam (Netherlands) and NSCIT (India) as well as the expansion
of our flagship facility at Jebel Ali (UAE), will add a significant
amount of infrastructure to the DP World network.
Dividend
The Board is recommending a full year dividend of 24 US cents
per share (2011: 24 US cents per share). This comprises an increase
of 10% in the ordinary dividend to 21 US cents per share,
supplemented by a special dividend of 3 US cents per share
reflecting the profit attributable to owners of the Company from
separately disclosed items. This will result in a total dividend
distribution of $199 million reflecting continued confidence in our
ability to generate cash and support our growth plans whilst
maintaining a consistent dividend payout.
Subject to approval by shareholders, the dividend will be paid
on 30 April 2013 to shareholders on the relevant register as at the
close of business on 2 April 2013.
Outlook
Operating conditions in each of our markets in the first two
months of 2013 have been consistent with those experienced at the
end of last year and the economic environment continues to remain
uncertain.
We remain confident about the long term outlook of our industry
and remain well positioned to deal with a changing economic
environment as well as continue to focus on our established high
standards of service to customers.
Sultan Ahmed Bin Sulayem
Chairman
Group Chief Executive's Review
Global trade lies at the heart of DP World's business. Ensuring
our ports are well placed to capture current and future trade flows
is essential to our success and creating value for all
stakeholders.
The patterns of global trade continue to evolve as the balance
of economic activity shifts to the south and the east and emerging
markets take an increasing share of world economic activity.
Figures from the United Nations Conference of Trade and
Development show that in 2011, developing countries had a 40.4%
share of global manufactured exports. In some categories the export
market share of these countries grew by over 30 percentage points
in only 15 years.
While industrialised Asian countries still dominate these
trends, one of the growing patterns is for increased intra-regional
trade. Over the 2000-2010 period, south-south exports grew from 13%
to 23% of world trade. China-India trade has more than doubled
since 2007 and Africa is also an increasingly important part of the
picture. Trade between China and Africa is likely to be over $200
billion in 2012. The World Trade Organisation has suggested at this
rate of increase - 25% year on year - Africa could, within three to
five years, surpass the EU and US to become China's largest trade
partner.
Another factor at play is the "Made in the World" phenomenon as
manufacturing processes continue to become global; developing
countries increasingly act as producers and markets for each other.
World Trade Organisation figures show almost 60% of trade in goods
is in intermediate goods with the average import content of exports
around 40%.
With manufacturing continuing to shift to cheaper locations,
middle class consumers in the emerging markets are playing an
increased role in global demand for goods. These trends are set to
continue.
To date, however, port development has not kept pace with these
changes. Volume growth has been almost double the rate of new
capacity growth, resulting in a significant lack of global
container terminal capacity today.
Shortage of capacity is further exacerbated by the fact that
much of the developed world port capacity is over 30 years old and
increasingly no longer fit for purpose. This point takes on
increased relevance with the arrival this year of a new breed of
ultra-large container ships at 18,000 TEU. These vessels are around
400m in length, which is larger than the average 300-350m container
berth.
The shift to these new vessels by our customers, the shipping
lines, represents a significant operational change on the Asia to
Europe routes. This in turn has led to a cascade of sub 8,000 TEU
vessels being deployed on 'smaller' or emerging trade routes, which
can add further to bottle-necks because many of the smaller
emerging market ports are not yet capable of handling these larger
vessels.
Meanwhile, 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. Our investment in London Gateway for example is expressly
for this reason, to improve the efficiency of the UK supply
chain.
Responding to these different operating challenges is critical
to fulfilling our customers' requirements and ensuring an efficient
supply chain. We do this through implementing processes, training
and efficient equipment. We are very focused on investing to
improve the reliability and performance of our container terminals
for the benefit of our customers and we are already seeing results.
In Dakar (Senegal) for example, truck turnaround time has decreased
from 8 hours to 45 minutes, in Dubai (UAE) it has reduced to 25
minutes and in Constanta (Romania) to 21 minutes. This allows a
higher number of deliveries and pick up's each day and helps reduce
congestion in port cities.
With the average life of a container port concession across the
industry in excess of 30 years, DP World must take a long term view
in positioning the company to respond to these trends.
Over the past five to six years DP World has invested more than
$6 billion adding over 20 million TEU of new capacity and growing
ahead of the market. Our investment has focused on ensuring we have
the capacity to match customer needs by:
- matching investment to changing trade lanes (such as in Africa, Turkey, Latin America);
- matching investment for larger vessels (such as in London Gateway and Jebel Ali); and
- matching investment to emerging market growth (such as in India).
The investment we are making now will ensure we are the best
positioned port operator to respond to these significant changes to
the global supply chain. We are already one of the best placed
terminal operators to handle these larger vessels across our
portfolio. We handled 1,283 ultra-large container ships globally in
2012, 72% more than last year. This has driven higher utilisation
across our portfolio and increased our market share.
By 2015 we expect to have approximately 85 million TEU of
capacity globally, with 30% of our capacity in the Middle East and
Africa, markets that are forecast to grow significantly. Our aim by
2020 is to be operating 100 million TEU of capacity, retaining our
10% market share and our 75% focus on emerging markets.
Uncertainty persists in the global economic outlook. Volumes on
major trade routes such as Asia to Europe will come under stress
during 2013 owing to a weak Eurozone economy. However, the DP World
geographic network positions us effectively to take advantage of
the strong intra-Asia trade and Middle East trades, the growing
African market and the relatively stable markets of the Americas.
We see plenty of opportunity to further expand our portfolio with
an emphasis on emerging markets in Africa, Central and South
America and Asia.
Mohammed Sharaf
Group Chief Executive Officer
Operating and Financial Review
This year, we have focused on our existing operations through
the delivery of exceptional customer service from improved
efficiencies in our terminals. This has allowed us to deliver good
revenue growth and manage costs, resulting in an improvement in
adjusted EBITDA margin to 45.1%.
Whilst the operating environment has remained challenging in
some of our regions, it is the strength of our operations in
Africa, Middle East, South America and Asia which has supported our
improvement in adjusted EBITDA to $1,407 million.
In 2012 we continued to actively manage our portfolio,
strategically divesting or monetising some of our terminals. This
makes a comparison with the prior year more challenging. Like for
like growth at constant currency, where referenced below, is a
better comparison as this is without the addition of (a) new
capacity at Paramaribo (Suriname) (b) divested equity-accounted
investees Tilbury (UK), P&O Trans Australia (POTA), Aden
(Yemen), Adelaide (Australia), Vostochny (Russia) and DMS (P&O
Maritime) (c) the deconsolidation of our five Australian terminals
and (d) the impact of exchange rates as our financial results are
translated into US dollars for reporting purposes.
USD Million 2012 2011 % change
before separately disclosed items[8]
---------------------------------------------- ------- ------------ ---------
Consolidated throughput (TEU '000) 27,097 27,471 (1%)
---------------------------------------------- ------- ------------ ---------
Revenue 3,121 2,978 5%
---------------------------------------------- ------- ------------ ---------
Share of profit (loss) from equity-accounted
investees 134 142 (6%)
---------------------------------------------- ------- ------------ ---------
Adjusted EBITDA 1,407 1,307 8%
---------------------------------------------- ------- ------------ ---------
Adjusted EBITDA margin 45.1% 43.9% -
---------------------------------------------- ------- ------------ ---------
Profit for the year attributable to
owners of the Company 555 459 21%
---------------------------------------------- ------- ------------ ---------
Revenue for our consolidated terminals was $3,121 million, 5%
ahead of the prior year. Containerised revenue accounted for 77% of
our total revenue and was $2,411 million for the year, 2% ahead of
the previous year. In spite of the 1% decline in throughput,
container revenue per TEU increased 4% as we focused on handling
higher revenue container volumes and implemented price increases
particularly in the Middle East, Europe and Africa region.
Non-container revenue was $710 million, 14% ahead of the prior year
and accounted for 23% of total revenue.
During the year we divested a number of terminals from our
equity-accounted investee's portfolio, in particular in the Middle
East, Europe and Africa region. Our share of profit from equity
accounted investees was lower than last year at $134 million.
However, excluding these divestments, the portfolio performed well,
delivering 9% like for like growth at constant currency as
terminals in the Americas and Australia region, and Middle East,
Europe and Africa region performed strongly.
Adjusted EBITDA continued to improve reaching $1,407 million, an
increase of 8%, due to strong growth in the Middle East, Europe and
Africa region. Adjusted EBITDA margin expanded to 45.1% as
utilisation rates improved to over 80%, terminal efficiencies
improved and we maintained good cost discipline.
Profit for the year attributable to owners of the Company,
before separately disclosed items, was $555 million and 21% ahead
of the prior year following the increase in adjusted EBITDA growth
and a $17 million reduction in net finance costs, depreciation and
amortisation from the prior year.
On a like for like basis at constant currency[9], revenue was
10% ahead and adjusted EBITDA was 11% ahead of the prior year.
During 2012, we invested $685 million across our portfolio. This
was significantly lower than expected as some of our planned
capital expenditure in 2012 will now come in 2013. This will not
impact the timing of the delivery of new capacity, but is simply a
function of when equipment is invoiced and paid for.
Investment in new developments accounted for approximately 57%
of our total capital expenditure with the majority focused on our
new development at London Gateway (UK), which will open with 1.6
million TEU of capacity in the fourth quarter of 2013.
Expansion of existing facilities accounted for 27% of our total
capital expenditure, supporting the expansion of Jebel Ali where an
additional 1 million TEU is on track to open at Terminal 2 in 2013
and a further 4 million TEU is due to open at Terminal 3 in
2014.
Middle East, Europe and Africa
The Middle East, Europe and Africa region delivered an excellent
performance with a 19% improvement in adjusted EBITDA, and further
improvement in adjusted EBITDA margin to 48.3% as both container
revenue per TEU and non-container revenue increased. This reflects
the strategic positioning of our terminals toward the stronger
economies with a focus on the origin and destination markets and
compensates for weaker trade across continental Europe.
USD million 2012 2011 % change
before separately disclosed items
---------------------------------------------- ------- ------- ---------
Consolidated throughput (TEU '000) 19,202 19,110 1%
---------------------------------------------- ------- ------- ---------
Revenue 2,112 1,884 12%
---------------------------------------------- ------- ------- ---------
Share of profit (loss) from equity-accounted
investees 24 14 69%
---------------------------------------------- ------- ------- ---------
Adjusted EBITDA 1,021 861 19%
---------------------------------------------- ------- ------- ---------
Adjusted EBITDA margin 48.3% 45.7% -
---------------------------------------------- ------- ------- ---------
Revenue was $2,112 million, 12% ahead of the prior year as
container volumes increased 1% and container revenue per TEU
increased 10% following price increases in this region.
Non-container revenue increased 19% to $493 million, primarily
driven by the UAE where we saw an increase in demand related to
construction, tourism and roll-on roll-off cargo.
Our share of profit from equity-accounted investees increased to
$24 million as a stronger performance from the Africa and Middle
East terminals mitigated a weaker performance in European ports
where volumes softened and recent divestments impacted our share of
profit.
Adjusted EBITDA was $1,021 million, 19% ahead of 2011 as the
increase in revenue combined with improved productivity, higher
utilisation and good cost management resulted in higher adjusted
EBITDA margin of 48.3%.
The UAE region delivered another excellent performance with
container revenue per TEU increasing by 18%. This growth in revenue
is as a result of proactive pricing measures for both container
stevedoring and container storage. Non-container revenue grew by
28% as the region continued to benefit from an improvement in
economic performance, driven by the tourism and retail sectors and
an increase in the number of infrastructure projects.
Investment in our Middle East, Europe and Africa portfolio was
$575 million during 2012. This investment was focused on London
Gateway (UK), which will open with 1.6 million TEU in 2013, and the
extension of Jebel Ali (UAE) where an additional 1 million TEU at
Terminal 2 will open in 2013 and 4 million TEU at Terminal 3 is
expected in 2014.
During the year, some of our Europe and Middle East
equity-accounted terminals were divested as we took the opportunity
to recycle capital into high return businesses in faster growing
markets where we have management control. Divestments included
container terminals at Tilbury (UK), Aden (Yemen) and Vostochny
(Russia). In addition, as part of a restructuring at Antwerp
(Belgium), we divested our break bulk facility to focus on
container terminal operations. Excluding these divestments, like
for like revenue growth at constant currency[10] was 13% ahead of
the prior year and adjusted EBITDA was 20% ahead.
Asia Pacific and Indian Subcontinent
The Asia Pacific and Indian Subcontinent region took a strategic
decision to focus on handling a smaller number of higher margin
containers. Whilst this has reduced revenue and adjusted EBITDA,
adjusted EBITDA margin increased to 65.6%. The region was also
impacted by unfavourable currency movements.
USD million 2012 2011 % change
before separately disclosed items
---------------------------------------------- ------ ------ ---------
Consolidated throughput (TEU '000) 5,401 5,578 (3%)
---------------------------------------------- ------ ------ ---------
Revenue 457 500 (9%)
---------------------------------------------- ------ ------ ---------
Share of profit (loss) from equity-accounted
investees 111 117 (6%)
---------------------------------------------- ------ ------ ---------
Adjusted EBITDA 299 322 (7%)
---------------------------------------------- ------ ------ ---------
Adjusted EBITDA margin 65.6% 64.5% -
---------------------------------------------- ------ ------ ---------
Revenue across the region fell 9% to $457 million due to the
reduction in container volumes, lower storage revenue in Karachi
(Pakistan) and unfavourable currency movements. Non-container
revenue improved 8% to $63 million as we saw a greater contribution
from our rail service in India and non-container revenue in some
Indian ports.
Whilst our portfolio of terminals accounted for as equity
accounted investees performed well in 2012, the comparison with the
prior year was impacted by higher profit in 2011 from a one-off
government rent and rates refund in Asia. Excluding this, profit
from our portfolio of equity-accounted terminals was slightly lower
than the prior year.
Adjusted EBITDA was $299 million, 7% lower than last year on
account of the lower revenue and lower contribution from our share
of profit from equity accounted investees. However, our decision to
focus on higher margin containers in India has resulted in higher
adjusted EBITDA margin of 65.6%.
Excluding unfavourable currency movements, like for like revenue
growth at constant currency[11] declined 3% and adjusted EBITDA
declined 6% when compared with the prior year.
On 7 March 2013, DP World entered into a strategic partnership
with Goodman Hong Kong Logistics Fund, monetising 75% of its
interests in CSX World Terminals Hong Kong Limited (CT3), which
operates berth 3 of the Kwai Chung Container Terminal (CT3) and ATL
Logistics Centre Hong Kong Limited (ATL), a logistics centre
located alongside CT3. As part of the strategic partnership, DP
World will continue to manage the port operations. Completion,
subject to regulatory approvals, is expected to be towards the end
of the first half of 2013.
On the same day, DP World divested all of its interest in Asia
Container Terminals Holdings Limited, the holding company of the
entity that owns and operates Asia Container Terminal 8 West
(CT8).
The total consideration for the two transactions was $742
million and the total net gain is expected to be approximately $151
million, subject to transaction costs and currency movements.
Australia and Americas
Our terminals in the Americas and Australia region delivered a
strong underlying[12] revenue performance in 2012. However this has
not been converted into equally strong adjusted EBITDA growth due
to weaker results from our equity-accounted investees which were
impacted by pre-operational costs in Embraport (Brazil) and the
impact of one-off non-core expenses in the region.
USD million 2012 2011 As reported Underlying
before separately disclosed items % change % change
---------------------------------------------- ------ ------ ------------ -----------
Consolidated throughput (TEU '000) 2,494 2,782 (10%) 12%
---------------------------------------------- ------ ------ ------------ -----------
Revenue 553 594 (7%) 14%
---------------------------------------------- ------ ------ ------------ -----------
Share of profit (loss) from equity-accounted
investees (1) 10 (110%) (7%)
---------------------------------------------- ------ ------ ------------ -----------
Adjusted EBITDA 166 203 (18%) 2%
---------------------------------------------- ------ ------ ------------ -----------
Adjusted EBITDA margin 30.0% 34.2% - -
---------------------------------------------- ------ ------ ------------ -----------
Revenue was $553 million for the year, down 7% due to the
deconsolidation of Australian terminals from 12 March 2011. On an
underlying basis this was 14% ahead, reflecting a 4% improvement in
container revenue per TEU and a 3% improvement in non-container
revenue.
We reported a loss of $1 million on our share of profit from
equity-accounted investees. This was due to the higher interests
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 Embraport (Brazil) and the exclusion of
profit from P&O Trans Australia (POTA) and Adelaide
(Australia), which were divested in 2011 and 2012 respectively.
Adjusted EBITDA was $166 million, down 18% on a reported basis
principally due to the deconsolidation of Australian terminals and
divestments. On an underlying basis adjusted EBITDA was 2% ahead as
we continued to grow underlying revenue and maintain good cost
control. The adjusted EBITDA margin of 30% was diluted by the loss
of profit from equity-accounted investees.
Like for like revenue growth at constant currency[13] was 11%
ahead of the prior year as volumes grew 10% and adjusted EBITDA
decreased 3%.
Capital Expenditure
During 2012, we invested $685 million across our portfolio. This
was significantly lower than expected as some of our planned
capital expenditure in 2012 will now come in 2013. This will not
impact the timing of the delivery of new capacity, but is simply a
function of when equipment is invoiced and paid for.
Our three year forecast for capital expenditure between 2012 and
2014 remains at $3.7 billion with the expectation of investing
approximately $1.8 billion and $1.1 billion in 2013 and 2014
respectively. From 2015 onwards we expect capital expenditure,
including maintenance capital expenditure, to significantly
reduce.
Investment in new developments accounted for approximately 57%
of our total capital expenditure with the majority focused on our
new development at London Gateway (UK) which will open with 1.6
million TEU of capacity in the fourth quarter of 2013.
Expansion of existing facilities accounted for 27% of our total
capital expenditure, supporting the expansion of Jebel Ali Port
where an additional 1 million TEU is on track to open at Terminal 2
in 2013 and a further 4 million TEU is due to open at Terminal 3 in
2014.
Alongside these larger capital investment projects, additional
capital expenditure was focused on our existing portfolio to ensure
that our terminals are improving efficiencies and productivity.
Net Finance Costs
As at 31 December 2012, gross debt was $4.8 billion and cash
balances were $1.9 billion.
In April 2012, we repaid a $3 billion syndicated loan facility
using some of the cash held on our balance sheet. The repayment of
the loan facility resulted in lower finance costs of $364 million
for the year and reduced finance income of $75 million. Net finance
costs of $289 million remained broadly in line with the previous
year.
Interest Cover (adjusted EBITDA and net finance costs) improved
to 4.9 times in 2012.
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 taxation laws
and regulations of the countries in which they operate. For 2012,
DP World's income tax expense was $73 million before separately
disclosed items.
The effective tax rate before separately disclosed items was
14.9%, lower than the prior year, due to a change in the mix of our
profit.
Profit Attributable to non-controlling interests (minority
interest)
Profit attributable to non-controlling interests (minority
interests) was higher than the prior year at $80 million due to a
stronger performance in those terminals where there is a larger
non-controlling interest.
The key terminals where we have non-controlling interest in 2012
are CT3 (Hong Kong), Doraleh (Djibouti), Karachi (Pakistan), Buenos
Aires (Argentina) and Southampton (UK).
Separately Disclosed Items
In 2012, DP World reported separately disclosed items of $192
million. This comprised $249 million profit on sale of businesses
and our share of profit of equity-accounted investees. These
profits were netted off against impairment of assets and
restructuring costs, ineffective interest rate swaps and currency
options and income tax expenses.
Balance Sheet
In 2012, total assets reduced to $16.4 billion as cash balances
decreased due to the repayment of debt using cash from the balance
sheet. Total equity increased to $8.7 billion due to an increase in
retained earnings.
The Group's investment in equity-accounted investees reduced to
$3.3 billion as we made a number of divestments from this portfolio
during the year.
Cash Flow
Net cash from operating activities was $1,231 million, an
increase of $251 million over 2011 due to better performance from
our terminals.
Net Debt
As at 31 December 2012 net debt was $2.9 billion (gross debt of
$4.8 billion and cash of $1.9 billion). This compares with a net
debt of $3.5 billion as at 30 June 2012. Net debt is significantly
lower due to increased net cash from operating activities, and
proceeds from divestments.
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 $1.5
billion of debt at the subsidiary level.
Leverage (net debt to adjusted EBITDA) decreased to 2.0 times.
Following the transactions in Hong Kong, our leverage will reduce
further.
Return on Capital Employed
In 2012, we reported an improvement in return on capital
employed (EBIT divided by total assets less current liabilities) to
6.8%.
DP World has a portfolio of long-term assets with an average
concession life of approximately 40 years. As at the end of 2012,
26% of our capacity was less than five years old and we have four
major projects at pre-operational stage of development. This means
a significant proportion of our assets are some way from delivering
maximum potential EBIT which dilutes the overall returns. However,
as this capacity becomes operational and matures we expect our
returns to make steady progress towards 15%.
Mohammed Sharaf Yuvraj Narayan
Group Chief Executive Officer Chief Financial Officer
------------------------------- -------------------------
DP World Limited and its subsidiaries
Consolidated income statement
for the year ended 31 December 2012
Year ended 31 December 2012 Year ended 31 December 2011
------------------ ------- ----------------------------------------------- ------------------------------------------------
Separately Separately
Notes Before disclosed Before disclosed
separately items Total separately items Total
disclosed (Note 11) disclosed (Note 11)
items items
------------------ ------- ------------- ------------ ------------------ ------------- ------------ -------------------
USD'000 USD'000 USD'000 USD'000 USD'000 USD'000
------------------ ------- ------------- ------------ ------------------ ------------- ------------ -------------------
Revenue 7 3,121,017 - 3,121,017 2,977,731 - 2,977,731
------------------ ------- ------------- ------------ ------------------ ------------- ------------ -------------------
Cost of sales (2,002,806) - (2,002,806) (2,005,159) - (2,005,159)
------------------ ------- ------------- ------------ ------------------ ------------- ------------ -------------------
------------ ----------- ------------- ------------ ----------- -------------
------------------ ------- ------------- ------------ ------------------ ------------- ------------ -------------------
Gross profit 1,118,211 - 1,118,211 972,572 - 972,572
------------------ ------- ------------- ------------ ------------------ ------------- ------------ -------------------
General and
administrative
expenses (276,900) (55,850) (332,750) (256,961) (243,862) (500,823)
------------------ ------- ------------- ------------ ------------------ ------------- ------------ -------------------
Other income 21,643 - 21,643 21,029 - 21,029
------------------ ------- ------------- ------------ ------------------ ------------- ------------ -------------------
Profit on sale
and termination
of businesses
(net of tax) 11 - 237,204 237,204 - 484,354 484,354
------------------ ------- ------------- ------------ ------------------ ------------- ------------ -------------------
Share of profit/
(loss) from
equity-accounted
investees (net
of tax) 15 133,897 20,710 154,607 141,711 (3,047) 138,664
------------------ ------- ------------- ------------ ------------------ ------------- ------------ -------------------
------------ ---------- ------------ ---------- ---------- ------------
------------------ ------- ------------- ------------ ------------------ ------------- ------------ -------------------
Results from
operating
activities 996,851 202,064 1,198,915 878,351 237,445 1,115,796
------------------ ------- ------------- ------------ ------------------ ------------- ------------ -------------------
--------- ---------- ------------ ---------- ---------- ------------
------------------ ------- ------------- ------------ ------------------ ------------- ------------ -------------------
Finance income 9 75,211 - 75,211 135,361 - 135,361
------------------ ------- ------------- ------------ ------------------ ------------- ------------ -------------------
Finance costs 9 (364,092) (10,373) (374,465) (422,931) (10,770) (433,701)
------------------ ------- ------------- ------------ ------------------ ------------- ------------ -------------------
---------- --------- ---------- ---------- --------- ----------
------------------ ------- ------------- ------------ ------------------ ------------- ------------ -------------------
Net finance costs (288,881) (10,373) (299,254) (287,570) (10,770) (298,340)
------------------ ------- ------------- ------------ ------------------ ------------- ------------ -------------------
---------- --------- ---------- ---------- --------- ----------
------------------ ------- ------------- ------------ ------------------ ------------- ------------ -------------------
Profit before tax 707,970 191,691 899,661 590,781 226,675 817,456
------------------ ------- ------------- ------------ ------------------ ------------- ------------ -------------------
Income tax
expense 10 (72,954) - (72,954) (59,042) (7,211) (66,253)
------------------ ------- ------------- ------------ ------------------ ------------- ------------ -------------------
----------- ---------- ---------- ----------- ---------- ----------
------------------ ------- ------------- ------------ ------------------ ------------- ------------ -------------------
Profit for the
year 8 635,016 191,691 826,707 531,739 219,464 751,203
------------------ ------- ------------- ------------ ------------------ ------------- ------------ -------------------
====== ====== ====== ====== ====== ======
------------------ ------- ------------- ------------ ------------------ ------------- ------------ -------------------
Profit
attributable to:
------------------ ------- ------------- ------------ ------------------ ------------- ------------ -------------------
Owners of the
Company 555,390 193,216 748,606 458,620 224,672 683,292
------------------ ------- ------------- ------------ ------------------ ------------- ------------ -------------------
Non-controlling
interests 79,626 (1,525) 78,101 73,119 (5,208) 67,911
------------------ ------- ------------- ------------ ------------------ ------------- ------------ -------------------
----------- ----------- ----------- ----------- ----------- -----------
------------------ ------- ------------- ------------ ------------------ ------------- ------------ -------------------
635,016 191,691 826,707 531,739 219,464 751,203
------------------ ------- ------------- ------------ ------------------ ------------- ------------ -------------------
====== ====== ====== ====== ====== ======
------------------ ------- ------------- ------------ ------------------ ------------- ------------ -------------------
Earnings per
share
------------------ ------- ------------- ------------ ------------------ ------------- ------------ -------------------
Basic and diluted
earnings per
share - US cents 22 90.19 82.32
------------------ ------- ------------- ------------ ------------------ ------------- ------------ -------------------
===== =====
------------------------------------------ ------------ ------------------ ------------- ------------ -------------------
The accompanying notes form an integral part of these consolidated financial statements. For
a full set of notes 1-35 please visit DP World website at www.dpworld.com
------------------------------------------------------------------------------------------------------------------------------
DP World Limited and its subsidiaries
Consolidated statement of comprehensive income
for the year ended 31 December 2012
2012 2011
-------------------------------------------------- ------ ------------ ------------
Notes USD'000 USD'000
-------------------------------------------------- ------ ------------ ------------
Profit for the year 826,707 751,203
-------------------------------------------------- ------ ------------ ------------
---------- ----------
-------------------------------------------------- ------ ------------ ------------
Other comprehensive income
-------------------------------------------------- ------ ------------ ------------
Foreign exchange translation differences
for foreign operations * 104,135 (202,057)
-------------------------------------------------- ------ ------------ ------------
Foreign exchange profit recycled to consolidated
income statement on sale of businesses (2,131) (425,773)
-------------------------------------------------- ------ ------------ ------------
Effective portion of net changes in fair
value of cash flow hedges (24,768) (52,308)
-------------------------------------------------- ------ ------------ ------------
Net change in cash flow hedges recycled
to 10,373 -
consolidated income statement
-------------------------------------------------- ------ ------------ ------------
Net change in fair value of available-for-sale
financial assets 16 (132) 8,939
-------------------------------------------------- ------ ------------ ------------
Defined benefit plan actuarial losses 24 (49,900) (110,400)
-------------------------------------------------- ------ ------------ ------------
Share in other comprehensive income of
equity-accounted investees (8,686) (10,268)
-------------------------------------------------- ------ ------------ ------------
Income tax on other comprehensive income:
-------------------------------------------------- ------ ------------ ------------
Fair value of cash flow hedges 10,444 14,595
-------------------------------------------------- ------ ------------ ------------
Defined benefit plan actuarial losses 500 2,245
-------------------------------------------------- ------ ------------ ------------
--------- ----------
-------------------------------------------------- ------ ------------ ------------
Other comprehensive income for the year,
net of income tax 39,835 (775,027)
-------------------------------------------------- ------ ------------ ------------
---------- ----------
-------------------------------------------------- ------ ------------ ------------
Total comprehensive income/ (loss) for
the year 866,542 (23,824)
-------------------------------------------------- ------ ------------ ------------
====== ======
-------------------------------------------------- ------ ------------ ------------
Total comprehensive income/ (loss) attributable
to:
-------------------------------------------------- ------ ------------ ------------
Owners of the Company 788,531 (82,589)
-------------------------------------------------- ------ ------------ ------------
Non-controlling interests 78,011 58,765
-------------------------------------------------- ------ ------------ ------------
----------- ----------
-------------------------------------------------- ------ ------------ ------------
866,542 (23,824)
-------------------------------------------------- ------ ------------ ------------
====== ======
-------------------------------------------------- ------ ------------ ------------
* A significant portion of this includes foreign exchange
translation differences arising from the translation of goodwill
and purchase price adjustments which are denominated in foreign
currencies at the Group level. 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 (refer to
note 2(d)).
The accompanying notes form an integral part of these
consolidated financial statements. For a full set of notes 1-35
please visit DP World website at www.dpworld.com
DP World Limited and its subsidiaries
Consolidated statement of financial position
as at 31 December 2012
2012 2011
------------------------------------------ ------ -------------- --------------
Notes USD'000 USD'000
------------------------------------------ ------ -------------- --------------
Assets
------------------------------------------ ------ -------------- --------------
Non-current assets
------------------------------------------ ------ -------------- --------------
Property, plant and equipment 12 5,413,262 5,124,120
------------------------------------------ ------ -------------- --------------
Goodwill 13 1,588,918 1,607,655
------------------------------------------ ------ -------------- --------------
Port concession rights 13 3,115,084 3,223,958
------------------------------------------ ------ -------------- --------------
Investment in equity-accounted investees 15 3,348,317 3,451,264
------------------------------------------ ------ -------------- --------------
Deferred tax assets 10 105,753 101,212
------------------------------------------ ------ -------------- --------------
Other investments 16 60,833 73,193
------------------------------------------ ------ -------------- --------------
Accounts receivable and prepayments 17 263,428 260,114
------------------------------------------ ------ -------------- --------------
------------- -------------
------------------------------------------ ------ -------------- --------------
Total non-current assets 13,895,595 13,841,516
------------------------------------------ ------ -------------- --------------
------------- -------------
------------------------------------------ ------ -------------- --------------
Current assets
------------------------------------------ ------ -------------- --------------
Inventories 53,283 54,979
------------------------------------------ ------ -------------- --------------
Accounts receivable and prepayments 17 603,103 624,020
------------------------------------------ ------ -------------- --------------
Bank balances and cash 18 1,881,928 4,159,364
------------------------------------------ ------ -------------- --------------
Assets held for sale 28 - 77,706
------------------------------------------ ------ -------------- --------------
------------- -------------
------------------------------------------ ------ -------------- --------------
Total current assets 2,538,314 4,916,069
------------------------------------------ ------ -------------- --------------
------------- -------------
------------------------------------------ ------ -------------- --------------
Total assets 16,433,909 18,757,585
------------------------------------------ ------ -------------- --------------
======== ========
------------------------------------------ ------ -------------- --------------
DP World Limited and its subsidiaries
Consolidated statement of financial position (continued)
as at 31 December 2012
2012 2011
--------------------------------------- ------ -------------- --------------
Notes USD'000 USD'000
--------------------------------------- ------ -------------- --------------
Equity
--------------------------------------- ------ -------------- --------------
Share capital 19 1,660,000 1,660,000
--------------------------------------- ------ -------------- --------------
Share premium 20 2,472,655 2,472,655
--------------------------------------- ------ -------------- --------------
Shareholders' reserve 20 2,000,000 2,000,000
--------------------------------------- ------ -------------- --------------
Retained earnings 2,936,637 2,367,164
--------------------------------------- ------ -------------- --------------
Hedging and other reserves 20 (122,229) (104,408)
--------------------------------------- ------ -------------- --------------
Actuarial reserve 20 (398,302) (352,402)
--------------------------------------- ------ -------------- --------------
Translation reserve 20 (482,909) (586,555)
--------------------------------------- ------ -------------- --------------
------------ ------------
--------------------------------------- ------ -------------- --------------
Total equity attributable to equity
holders of the Company 8,065,852 7,456,454
--------------------------------------- ------ -------------- --------------
Non-controlling interests 663,993 765,013
--------------------------------------- ------ -------------- --------------
------------ ------------
--------------------------------------- ------ -------------- --------------
Total equity 8,729,845 8,221,467
--------------------------------------- ------ -------------- --------------
------------ ------------
--------------------------------------- ------ -------------- --------------
Liabilities
--------------------------------------- ------ -------------- --------------
Non-current liabilities
--------------------------------------- ------ -------------- --------------
Deferred tax liabilities 10 1,070,931 1,078,355
--------------------------------------- ------ -------------- --------------
Employees' end of service benefits 23 55,747 49,393
--------------------------------------- ------ -------------- --------------
Pension and post-employment benefits 24 273,796 235,750
--------------------------------------- ------ -------------- --------------
Interest bearing loans and borrowings 25 4,049,621 4,563,309
--------------------------------------- ------ -------------- --------------
Accounts payable and accruals 26 504,755 467,240
--------------------------------------- ------ -------------- --------------
------------- ------------
--------------------------------------- ------ -------------- --------------
Total non-current liabilities 5,954,850 6,394,047
--------------------------------------- ------ -------------- --------------
------------- ------------
--------------------------------------- ------ -------------- --------------
Current liabilities
--------------------------------------- ------ -------------- --------------
Income tax liabilities 10 180,267 169,585
--------------------------------------- ------ -------------- --------------
Bank overdrafts 18 195 1,017
--------------------------------------- ------ -------------- --------------
Pension and post-employment benefits 24 11,845 12,621
--------------------------------------- ------ -------------- --------------
Interest bearing loans and borrowings 25 702,835 3,178,446
--------------------------------------- ------ -------------- --------------
Accounts payable and accruals 26 854,072 780,402
--------------------------------------- ------ -------------- --------------
------------- ------------
--------------------------------------- ------ -------------- --------------
Total current liabilities 1,749,214 4,142,071
--------------------------------------- ------ -------------- --------------
------------- -------------
--------------------------------------- ------ -------------- --------------
Total liabilities 7,704,064 10,536,118
--------------------------------------- ------ -------------- --------------
------------- -------------
--------------------------------------- ------ -------------- --------------
Total equity and liabilities 16,433,909 18,757,585
--------------------------------------- ------ -------------- --------------
======== ========
--------------------------------------- ------ -------------- --------------
The accompanying notes form an integral part of these
consolidated financial statements. For a full set of notes 1-35
please visit DP World website at www.dpworld.com
DP World Limited and its subsidiaries
Consolidated statement of changes in equity
for the year ended 31 December 2012
Attributable to equity holders of the Company
----------------- ------------------------------------------------------------------------------------------------------------------------------------------------------
Hedging Non-controlling
Share Share Shareholders' Retained and other Actuarial Translation interests Total
capital premium reserve earnings reserves reserve reserve Total USD'000 equity
USD'000 USD'000 USD'000 USD'000 USD'000 USD'000 USD'000 USD'000 USD'000
----------------- ------------- ------------- --------------- ------------- ----------- ------------ ------------- ------------- ---------------- -------------
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 year
----------------- ------------- ------------- --------------- ------------- ----------- ------------ ------------- ------------- ---------------- -------------
Profit for the
year - - - 748,606 - - - 748,606 78,101 826,707
----------------- ------------- ------------- --------------- ------------- ----------- ------------ ------------- ------------- ---------------- -------------
Total other
comprehensive
income, net of
income tax - - - - (17,821) (45,900) 103,646 39,925 (90) 39,835
----------------- ------------- ------------- --------------- ------------- ----------- ------------ ------------- ------------- ---------------- -------------
---------- ---------- ---------- ---------- --------- --------- ---------- ---------- --------- ----------
----------------- ------------- ------------- --------------- ------------- ----------- ------------ ------------- ------------- ---------------- -------------
Total
comprehensive
income
for the year - - - 748,606 (17,821) (45,900) 103,646 788,531 78,011 866,542
----------------- ------------- ------------- --------------- ------------- ----------- ------------ ------------- ------------- ---------------- -------------
---------- ---------- ---------- ---------- --------- --------- ---------- ---------- --------- -----------
----------------- ------------- ------------- --------------- ------------- ----------- ------------ ------------- ------------- ---------------- -------------
Transactions
with owners,
recorded
directly in
equity
----------------- ------------- ------------- --------------- ------------- ----------- ------------ ------------- ------------- ---------------- -------------
Dividends paid
(refer to
note 21) - - - (199,200) - - - (199,200) - (199,200)
----------------- ------------- ------------- --------------- ------------- ----------- ------------ ------------- ------------- ---------------- -------------
---------- ---------- ---------- ----------- ------- ---------- -------- ----------- ---------- -----------
----------------- ------------- ------------- --------------- ------------- ----------- ------------ ------------- ------------- ---------------- -------------
Total
transactions
with owners - - - (199,200) - - - (199,200) - (199,200)
----------------- ------------- ------------- --------------- ------------- ----------- ------------ ------------- ------------- ---------------- -------------
---------- ---------- ---------- ----------- ------- ---------- -------- ----------- ---------- -----------
----------------- ------------- ------------- --------------- ------------- ----------- ------------ ------------- ------------- ---------------- -------------
Changes in
ownership
interests
in subsidiaries
----------------- ------------- ------------- --------------- ------------- ----------- ------------ ------------- ------------- ---------------- -------------
Acquisition of
non-controlling
interests
without
change in
control * - - - 20,067 - - - 20,067 (66,457) (46,390)
----------------- ------------- ------------- --------------- ------------- ----------- ------------ ------------- ------------- ---------------- -------------
Transactions
with
non-controlling
interests,
recorded
directly in
equity
----------------- ------------- ------------- --------------- ------------- ----------- ------------ ------------- ------------- ---------------- -------------
Dividends paid - - - - - - - - (90,050) (90,050)
----------------- ------------- ------------- --------------- ------------- ----------- ------------ ------------- ------------- ---------------- -------------
Derecognition of
non-controlling
interests
on monetisation
of investment
in subsidiaries - - - - - - - - (22,524) (22,524)
----------------- ------------- ------------- --------------- ------------- ----------- ------------ ------------- ------------- ---------------- -------------
------------ ---------- ---------- ---------- ---------- ---------- ---------- ---------- --------- ------------
----------------- ------------- ------------- --------------- ------------- ----------- ------------ ------------- ------------- ---------------- -------------
Total
transactions
with
non-controlling
interests - - - 20,067 - - - 20,067 (179,031) (158,964)
----------------- ------------- ------------- --------------- ------------- ----------- ------------ ------------- ------------- ---------------- -------------
------------ ------------ ------------ ------------ ---------- ----------- ----------- ------------ ---------- ------------
----------------- ------------- ------------- --------------- ------------- ----------- ------------ ------------- ------------- ---------------- -------------
Balance as at 31
December
2012 1,660,000 2,472,655 2,000,000 2,936,637 (122,229) (398,302) (482,909) 8,065,852 663,993 8,729,845
----------------- ------------- ------------- --------------- ------------- ----------- ------------ ------------- ------------- ---------------- -------------
======= ======= ======= ======= ====== ====== ====== ======= ====== =======
----------------- ------------- ------------- --------------- ------------- ----------- ------------ ------------- ------------- ---------------- -------------
* This mainly includes acquisition of remaining 10% interest in
a subsidiary in Middle East, Europe and Africa Region for a
consideration of USD 46,390 thousand resulting in a gain on
acquisition of USD 20,067 thousand.
The accompanying notes form an integral part of these
consolidated financial statements. For a full set of notes 1-35
please visit DP World website at www.dpworld.com
DP World Limited and its subsidiaries
Consolidated statement of changes in equity (continued)
for the year ended 31 December 2012
Attributable to equity holders of the Company
----------------- ------------------------------------------------------------------------------------------------------------------------------------------------------
Hedging Non-controlling
Share Share Shareholders' Retained and other Actuarial Translation interests Total
capital premium reserve earnings reserves reserve reserve Total USD'000 equity
USD'000 USD'000 USD'000 USD'000 USD'000 USD'000 USD'000 USD'000 USD'000
----------------- ------------- ------------- --------------- ------------- ----------- ------------ ------------- ------------- ---------------- -------------
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 year:
----------------- ------------- ------------- --------------- ------------- ----------- ------------ ------------- ------------- ---------------- -------------
Profit for the
year - - - 683,292 - - - 683,292 67,911 751,203
----------------- ------------- ------------- --------------- ------------- ----------- ------------ ------------- ------------- ---------------- -------------
Total other
comprehensive
income, net of
income tax - - - - (36,550) (102,702) (626,629) (765,881) (9,146) (775,027)
----------------- ------------- ------------- --------------- ------------- ----------- ------------ ------------- ------------- ---------------- -------------
---------- ---------- ---------- ---------- --------- --------- ---------- ---------- --------- ----------
----------------- ------------- ------------- --------------- ------------- ----------- ------------ ------------- ------------- ---------------- -------------
Total
comprehensive
income
for the year - - - 683,292 (36,550) (102,702) (626,629) (82,589) 58,765 (23,824)
----------------- ------------- ------------- --------------- ------------- ----------- ------------ ------------- ------------- ---------------- -------------
---------- ---------- ---------- ---------- --------- --------- ---------- ---------- --------- -----------
----------------- ------------- ------------- --------------- ------------- ----------- ------------ ------------- ------------- ---------------- -------------
Transactions
with owners,
recorded
directly in
equity
----------------- ------------- ------------- --------------- ------------- ----------- ------------ ------------- ------------- ---------------- -------------
Dividends paid
(refer to
note 21) - - - (142,760) - - - (142,760) - (142,760)
----------------- ------------- ------------- --------------- ------------- ----------- ------------ ------------- ------------- ---------------- -------------
Settlement of
share-based
payment
transactions - - - - (3,200) - - (3,200) - (3,200)
----------------- ------------- ------------- --------------- ------------- ----------- ------------ ------------- ------------- ---------------- -------------
---------- ---------- ---------- ----------- ------- ---------- -------- ----------- ---------- -----------
----------------- ------------- ------------- --------------- ------------- ----------- ------------ ------------- ------------- ---------------- -------------
Total
transactions
with owners - - - (142,760) (3,200) - - (145,960) - (145,960)
----------------- ------------- ------------- --------------- ------------- ----------- ------------ ------------- ------------- ---------------- -------------
---------- ---------- ---------- ----------- ------- ---------- -------- ----------- ---------- -----------
----------------- ------------- ------------- --------------- ------------- ----------- ------------ ------------- ------------- ---------------- -------------
Changes in
ownership
interests
in subsidiaries
----------------- ------------- ------------- --------------- ------------- ----------- ------------ ------------- ------------- ---------------- -------------
Acquisition of
non-controlling
interest,
recorded
directly in
equity - - - 3,141 - - - 3,141 (20,141) (17,000)
----------------- ------------- ------------- --------------- ------------- ----------- ------------ ------------- ------------- ---------------- -------------
Transactions
with
non-controlling
interests,
recorded
directly in
equity
----------------- ------------- ------------- --------------- ------------- ----------- ------------ ------------- ------------- ---------------- -------------
Dividends paid - - - - - - - - (51,665) (51,665)
----------------- ------------- ------------- --------------- ------------- ----------- ------------ ------------- ------------- ---------------- -------------
Derecognition of
non-controlling
interests
on monetisation
of investment
in subsidiaries - - - - - - - - (51,763) (51,763)
----------------- ------------- ------------- --------------- ------------- ----------- ------------ ------------- ------------- ---------------- -------------
Acquisition of
subsidiary
with
non-controlling
interests
(refer to note
30) - - - - - - - - 15,753 15,753
----------------- ------------- ------------- --------------- ------------- ----------- ------------ ------------- ------------- ---------------- -------------
------------ ---------- ---------- ---------- ---------- ---------- ---------- ---------- --------- ------------
----------------- ------------- ------------- --------------- ------------- ----------- ------------ ------------- ------------- ---------------- -------------
Total
transactions
with
non-controlling
interests - - - 3,141 - - - 3,141 (107,816) (104,675)
----------------- ------------- ------------- --------------- ------------- ----------- ------------ ------------- ------------- ---------------- -------------
------------ ------------ ------------ ------------ ---------- ----------- ----------- ------------ ---------- ------------
----------------- ------------- ------------- --------------- ------------- ----------- ------------ ------------- ------------- ---------------- -------------
Balance as at 31
December
2011 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
----------------- ------------- ------------- --------------- ------------- ----------- ------------ ------------- ------------- ---------------- -------------
======= ======= ======= ======= ====== ====== ====== ======= ======= =======
----------------- ------------- ------------- --------------- ------------- ----------- ------------ ------------- ------------- ---------------- -------------
* During the previous year, the Group acquired an additional 10%
non-controlling interest of USD 20,141 thousand in a subsidiary in
'Australia & Americas' region for a consideration of USD 17,000
thousand resulting in a gain on acquisition.
Notes 1 to 35 form an integral part of these consolidated
financial statements, For a full set of notes please visit the DP
World website.
DP World Limited and its subsidiaries
Consolidated statement of cash flows
for the year ended 31 December 2012
2012 2011
------------------------------------------------ ------ ------------- --------------
Notes USD'000 USD'000
------------------------------------------------ ------ ------------- --------------
Cash flows from operating activities
------------------------------------------------ ------ ------------- --------------
Profit for the year 826,707 751,203
------------------------------------------------ ------ ------------- --------------
Adjustments for:
------------------------------------------------ ------ ------------- --------------
Depreciation, amortisation and impairment 8 460,532 672,973
------------------------------------------------ ------ ------------- --------------
Share of profit from equity-accounted
investees (net of tax) (154,607) (138,664)
------------------------------------------------ ------ ------------- --------------
Finance costs 9 374,465 433,701
------------------------------------------------ ------ ------------- --------------
Loss/ (gain) on sale of property, plant
and equipment
and port concession rights 1,490 (6,928)
------------------------------------------------ ------ ------------- --------------
Profit on sale and termination of businesses
(net of tax) (237,204) (484,354)
------------------------------------------------ ------ ------------- --------------
Finance income 9 (75,211) (135,361)
------------------------------------------------ ------ ------------- --------------
Income tax expense 10 72,954 66,253
------------------------------------------------ ------ ------------- --------------
------------ -------------
------------------------------------------------ ------ ------------- --------------
Gross cash flows from operations 1,269,126 1,158,823
------------------------------------------------ ------ ------------- --------------
Change in inventories 1,641 (2,637)
------------------------------------------------ ------ ------------- --------------
Change in accounts receivable and prepayments 25,036 60,374
------------------------------------------------ ------ ------------- --------------
Change in accounts payable and accruals 47,141 (114,941)
------------------------------------------------ ------ ------------- --------------
Change in provisions, pensions and
post-employment benefits (36,743) (48,575)
------------------------------------------------ ------ ------------- --------------
----------- ------------
------------------------------------------------ ------ ------------- --------------
Cash generated from operating activities 1,306,201 1,053,044
------------------------------------------------ ------ ------------- --------------
Income taxes paid (74,856) (72,687)
------------------------------------------------ ------ ------------- --------------
------------ ----------
------------------------------------------------ ------ ------------- --------------
Net cash from operating activities 1,231,345 980,357
------------------------------------------------ ------ ------------- --------------
------------ ----------
------------------------------------------------ ------ ------------- --------------
Cash flows from investing activities
------------------------------------------------ ------ ------------- --------------
Additions to property, plant and equipment 12 (641,934) (449,508)
------------------------------------------------ ------ ------------- --------------
Additions to port concession rights 13 (43,017) (31,673)
------------------------------------------------ ------ ------------- --------------
Proceeds from disposal of property, plant
and equipment
and port concession rights 17,744 31,559
------------------------------------------------ ------ ------------- --------------
Net proceeds from monetisation of investment
in subsidiaries 14,744 1,404,649
------------------------------------------------ ------ ------------- --------------
Net cash outflow on acquisition of interest
in a subsidiary 30 - (31,315)
------------------------------------------------ ------ ------------- --------------
Cash outflow on acquisition of non-controlling
interests
without change in control (46,390) (17,000)
------------------------------------------------ ------ ------------- --------------
Interest received 77,594 108,980
------------------------------------------------ ------ ------------- --------------
Net proceeds from sale of investment in
equity-accounted investees 421,308 111,230
------------------------------------------------ ------ ------------- --------------
Dividends received from equity-accounted
investees 197,839 160,588
------------------------------------------------ ------ ------------- --------------
Additional investment in equity-accounted
investees (15,283) (11,527)
------------------------------------------------ ------ ------------- --------------
Net loan given to equity-accounted investees (500) (53,385)
------------------------------------------------ ------ ------------- --------------
Return of capital from equity-accounted 28,244 -
investees
------------------------------------------------ ------ ------------- --------------
Return of capital from other investments 12,228 -
------------------------------------------------ ------ ------------- --------------
--------- ------------
------------------------------------------------ ------ ------------- --------------
Net cash from investing activities 22,577 1,222,598
------------------------------------------------ ------ ------------- --------------
--------- ------------
------------------------------------------------ ------ ------------- --------------
DP World Limited and its subsidiaries
Consolidated statement of cash flows (continued)
for the year ended 31 December 2012
2012 2011
--------------------------------------------- ------ -------------- -------------
Notes USD'000 USD'000
--------------------------------------------- ------ -------------- -------------
Cash flows from financing activities
--------------------------------------------- ------ -------------- -------------
Repayment of interest bearing loans and
borrowings (3,204,428) (197,457)
--------------------------------------------- ------ -------------- -------------
Drawdown of interest bearing loans and
borrowings 241,411 216,024
--------------------------------------------- ------ -------------- -------------
Interest paid (292,575) (447,405)
--------------------------------------------- ------ -------------- -------------
Dividend paid to the owners of the Company (199,200) (142,760)
--------------------------------------------- ------ -------------- -------------
Dividends paid to non-controlling interests (90,050) (51,665)
--------------------------------------------- ------ -------------- -------------
------------- -----------
--------------------------------------------- ------ -------------- -------------
Net cash used in financing activities (3,544,842) (623,263)
--------------------------------------------- ------ -------------- -------------
------------- -----------
--------------------------------------------- ------ -------------- -------------
Net (decrease)/ increase in cash and cash
equivalents (2,290,920) 1,579,692
--------------------------------------------- ------ -------------- -------------
Cash and cash equivalents as at 1 January 4,158,347 2,567,516
--------------------------------------------- ------ -------------- -------------
Effect of exchange rate fluctuations on
cash held 14,306 11,139
--------------------------------------------- ------ -------------- -------------
------------ ------------
--------------------------------------------- ------ -------------- -------------
Cash and cash equivalents as at 31 December 18 1,881,733 4,158,347
--------------------------------------------- ------ -------------- -------------
======= =======
--------------------------------------------- ------ -------------- -------------
Cash and cash equivalents comprise the
following:
--------------------------------------------- ------ -------------- -------------
Bank balances and cash 1,881,928 4,159,364
--------------------------------------------- ------ -------------- -------------
Bank overdrafts (195) (1,017)
--------------------------------------------- ------ -------------- -------------
------------ ------------
--------------------------------------------- ------ -------------- -------------
Cash and cash equivalents 1,881,733 4,158,347
--------------------------------------------- ------ -------------- -------------
======= =======
--------------------------------------------- ------ -------------- -------------
The accompanying notes form an integral part of these
consolidated financial statements. For a full set of notes 1-35
please visit DP World website at www.dpworld.com
DP World Limited and its subsidiaries
Selected Notes to consolidated financial statements
A full set of Notes is available on the DP World website at
www.dpworld.com
6 Segment information
The following table presents certain results, assets and
liabilities information regarding the Group's segments as at the
reporting date.
Asia Pacific Australia and Middle East, Head office Inter-segment Total
and Indian Americas Europe and
subcontinent Africa
------------ ----------------------- ----------------------- ------------------------ -------------------------- ---------------------- --------------------------
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
------------ ---------- ----------- ----------- ---------- ----------- ----------- ------------ ------------ ---------- ---------- ------------ ------------
(Including separately disclosed items)
------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Revenue 456,578 499,765 552,751 594,065 2,111,688 1,883,901 - - - - 3,121,017 2,977,731
------------ ---------- ----------- ----------- ---------- ----------- ----------- ------------ ------------ ---------- ---------- ------------ ------------
====== ====== ====== ====== ======= ======= ===== ===== ===== ===== ======= =======
------------ ---------- ----------- ----------- ---------- ----------- ----------- ------------ ------------ ---------- ---------- ------------ ------------
Segment
results
from
operations
* 217,755 118,471 109,330 589,973 955,186 490,986 (156,310) (149,887) - - 1,125,961 1,049,543
------------ ---------- ----------- ----------- ---------- ----------- ----------- ------------ ------------ ---------- ---------- ------------ ------------
Finance
income - - - - - - 75,211 135,361 - - 75,211 135,361
------------ ---------- ----------- ----------- ---------- ----------- ----------- ------------ ------------ ---------- ---------- ------------ ------------
Finance
costs - - - - - - (374,465) (433,701) - - (374,465) (433,701)
------------ ---------- ----------- ----------- ---------- ----------- ----------- ------------ ------------ ---------- ---------- ------------ ------------
--------- ---------- ---------- --------- ---------- ---------- ---------- ---------- --------- --------- ---------- -----------
------------ ---------- ----------- ----------- ---------- ----------- ----------- ------------ ------------ ---------- ---------- ------------ ------------
Profit/
(loss) for
the year 217,755 118,471 109,330 589,973 955,186 490,986 (455,564) (448,227) - - 826,707 751,203
------------ ---------- ----------- ----------- ---------- ----------- ----------- ------------ ------------ ---------- ---------- ------------ ------------
====== ====== ====== ===== ====== ====== ====== ====== ===== ===== ====== ======
------------ ---------- ----------- ----------- ---------- ----------- ----------- ------------ ------------ ---------- ---------- ------------ ------------
* Segment results from operations comprise profit for the year 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 consolidated financial statements (continued)
6 Segment information (continued)
Asia Pacific Australia and Middle East, Head office Inter-segment Total
and Indian subcontinent Americas Europe and Africa
--------------- ------------------------- ------------------------ ---------------------------- ---------------------------- -------------------------- -----------------------------
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
--------------- ----------- ------------ ----------- ----------- ------------- ------------- ------------- ------------- ------------ ------------ ------------- --------------
Segment assets 4,993,196 5,076,106 1,804,715 1,847,887 9,448,179 8,031,636 8,862,301 11,185,296 (8,674,482) (7,383,340) 16,433,909 18,757,585
--------------- ----------- ------------ ----------- ----------- ------------- ------------- ------------- ------------- ------------ ------------ ------------- --------------
======= ======= ======= ======= ======= ======= ======= ======= ====== ======= ======= ========
--------------- ----------- ------------ ----------- ----------- ------------- ------------- ------------- ------------- ------------ ------------ ------------- --------------
Segment
liabilities 427,202 422,189 140,115 227,370 1,538,016 1,414,480 6,178,971 7,810,438 (1,831,438) (586,299) 6,452,866 9,288,178
--------------- ----------- ------------ ----------- ----------- ------------- ------------- ------------- ------------- ------------ ------------ ------------- --------------
Tax
liabilities
* - - - - - - 1,251,198 1,247,940 - - 1,251,198 1,247,940
--------------- ----------- ------------ ----------- ----------- ------------- ------------- ------------- ------------- ------------ ------------ ------------- --------------
---------- ---------- ---------- ---------- ------------ ------------ ------------ ------------ ---------- ---------- ------------ -------------
--------------- ----------- ------------ ----------- ----------- ------------- ------------- ------------- ------------- ------------ ------------ ------------- --------------
Total
liabilities 427,202 422,189 140,115 227,370 1,538,016 1,414,480 7,430,169 9,058,378 (1,831,438) (586,299) 7,704,064 10,536,118
--------------- ----------- ------------ ----------- ----------- ------------- ------------- ------------- ------------- ------------ ------------ ------------- --------------
====== ====== ====== ====== ======= ======= ======= ======= ====== ====== ======= ========
--------------- ----------- ------------ ----------- ----------- ------------- ------------- ------------- ------------- ------------ ------------ ------------- --------------
Capital
expenditure 7,894 15,954 98,650 84,279 575,034 378,668 3,373 2,280 - - 684,951 481,181
--------------- ----------- ------------ ----------- ----------- ------------- ------------- ------------- ------------- ------------ ------------ ------------- --------------
===== ===== ====== ===== ====== ====== ==== ===== ===== ===== ====== ======
--------------- ----------- ------------ ----------- ----------- ------------- ------------- ------------- ------------- ------------ ------------ ------------- --------------
Depreciation 32,848 32,504 64,458 61,103 187,636 194,133 5,069 5,137 - - 290,011 292,877
--------------- ----------- ------------ ----------- ----------- ------------- ------------- ------------- ------------- ------------ ------------ ------------- --------------
===== ====== ===== ===== ====== ====== ==== ==== ===== ===== ====== ======
--------------- ----------- ------------ ----------- ----------- ------------- ------------- ------------- ------------- ------------ ------------ ------------- --------------
Amortisation/
impairment 57,781 170,231 48,675 37,371 64,065 172,494 - - - - 170,521 380,096
--------------- ----------- ------------ ----------- ----------- ------------- ------------- ------------- ------------- ------------ ------------ ------------- --------------
===== ====== ===== ===== ====== ====== ==== ===== ===== ===== ====== ======
--------------- ----------- ------------ ----------- ----------- ------------- ------------- ------------- ------------- ------------ ------------ ------------- --------------
Share of
profit
of equity-
accounted
investees
before
separately
disclosed
items 110,853 117,354 (973) 10,107 24,017 14,250 - - - - 133,897 141,711
--------------- ----------- ------------ ----------- ----------- ------------- ------------- ------------- ------------- ------------ ------------ ------------- --------------
===== ===== ==== ===== ==== ===== ===== ===== === === ===== =====
--------------- ----------- ------------ ----------- ----------- ------------- ------------- ------------- ------------- ------------ ------------ ------------- --------------
Tax expense - - - - - - 72,954 59,042 - - 72,954 59,042
--------------- ----------- ------------ ----------- ----------- ------------- ------------- ------------- ------------- ------------ ------------ ------------- --------------
===== ===== ==== ===== ==== ===== ===== ===== === === ===== =====
--------------- ----------- ------------ ----------- ----------- ------------- ------------- ------------- ------------- ------------ ------------ ------------- --------------
* Tax liabilities and tax expensesfrom various geographical
locations have been grouped under head office.
DP World Limited and its subsidiaries
Notes to consolidated financial statements (continued)
6 Segment information (continued)
Earnings before separately disclosed items, interest, tax,
depreciation and amortisation ("Adjusted EBITDA")
Asia Pacific Australia and Middle East, Head office Inter-segment Total
and Indian Americas Europe and
subcontinent Africa
-------------- ------------------------- ------------------------ -------------------------- -------------------------- -------------------- --------------------------
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
-------------- ----------- ------------ ----------- ----------- ------------ ------------ ------------ ------------ --------- --------- ------------ ------------
Revenue
before
separately
disclosed
items 456,578 499,765 552,751 594,065 2,111,688 1,883,901 - - - - 3,121,017 2,977,731
-------------- ----------- ------------ ----------- ----------- ------------ ------------ ------------ ------------ --------- --------- ------------ ------------
====== ====== ====== ====== ======= ======= ==== ==== ==== ==== ======= =======
-------------- ----------- ------------ ----------- ----------- ------------ ------------ ------------ ------------ --------- --------- ------------ ------------
Adjusted
EBITDA 299,391 322,158 165,845 203,142 1,020,534 860,660 (78,287) (78,498) - - 1,407,483 1,307,462
-------------- ----------- ------------ ----------- ----------- ------------ ------------ ------------ ------------ --------- --------- ------------ ------------
Finance
income - - - - - - 75,211 135,361 - - 75,211 135,361
-------------- ----------- ------------ ----------- ----------- ------------ ------------ ------------ ------------ --------- --------- ------------ ------------
Finance costs - - - - - - (364,092) (422,931) - - (364,092) (422,931)
-------------- ----------- ------------ ----------- ----------- ------------ ------------ ------------ ------------ --------- --------- ------------ ------------
Tax expense - - - - - - (72,954) (59,042) - - (72,954) (59,042)
-------------- ----------- ------------ ----------- ----------- ------------ ------------ ------------ ------------ --------- --------- ------------ ------------
Depreciation
and
amortisation (90,629) (102,772) (77,333) (68,481) (237,601) (252,721) (5,069) (5,137) - - (410,632) (429,111)
-------------- ----------- ------------ ----------- ----------- ------------ ------------ ------------ ------------ --------- --------- ------------ ------------
-------- --------- -------- --------- --------- --------- --------- -------- ------- -------- --------- ---------
-------------- ----------- ------------ ----------- ----------- ------------ ------------ ------------ ------------ --------- --------- ------------ ------------
Adjusted net
profit/
(loss) for
the year
before
separately
disclosed
items 208,762 219,386 88,512 134,661 782,933 607,939 (445,191) (430,247) - - 635,016 531,739
-------------- ----------- ------------ ----------- ----------- ------------ ------------ ------------ ------------ --------- --------- ------------ ------------
Adjusted for
separately
disclosed
items 8,993 (100,915) 20,818 455,312 172,253 (116,953) (10,373) (17,980) - - 191,691 219,464
-------------- ----------- ------------ ----------- ----------- ------------ ------------ ------------ ------------ --------- --------- ------------ ------------
---------- ----------- ---------- ---------- ---------- ---------- --------- --------- -------- -------- ---------- ----------
-------------- ----------- ------------ ----------- ----------- ------------ ------------ ------------ ------------ --------- --------- ------------ ------------
Profit/
(loss)
for the year 217,755 118,471 109,330 589,973 955,186 490,986 (455,564) (448,227) - - 826,707 751,203
-------------- ----------- ------------ ----------- ----------- ------------ ------------ ------------ ------------ --------- --------- ------------ ------------
====== ====== ====== ====== ====== ====== ====== ====== ===== ===== ====== ======
-------------- ----------- ------------ ----------- ----------- ------------ ------------ ------------ ------------ --------- --------- ------------ ------------
7 Revenue
2012 2011
----------------------------------- ------------- -------------
USD'000 USD'000
----------------------------------- ------------- -------------
Revenue consists of:
----------------------------------- ------------- -------------
Containerized stevedoring revenue 1,366,200 1,382,642
----------------------------------- ------------- -------------
Containerized other revenue 1,044,967 973,073
----------------------------------- ------------- -------------
Non-containerized revenue 709,850 622,016
----------------------------------- ------------- -------------
------------ ------------
----------------------------------- ------------- -------------
3,121,017 2,977,731
----------------------------------- ------------- -------------
======= =======
----------------------------------- ------------- -------------
The Group does not have any customer which contributes more than
10 per cent of the Group's total revenue.
8 Profit for the year (including separately disclosed items)
2012 2011
---------------------------------------------- -------- --------
USD'000 USD'000
---------------------------------------------- -------- --------
Profit for the year is stated after charging
the following costs:
---------------------------------------------- -------- --------
Staff costs 646,846 575,143
---------------------------------------------- -------- --------
Depreciation and amortisation 410,632 429,111
---------------------------------------------- -------- --------
Impairment 49,900 243,862
---------------------------------------------- -------- --------
Operating lease rentals 384,521 412,398
---------------------------------------------- -------- --------
====== ======
---------------------------------------------- -------- --------
9 Finance income and costs (including separately disclosed items)
2012 2011
---------------------------------------------- ----------- -----------
USD'000 USD'000
---------------------------------------------- ----------- -----------
Finance income
---------------------------------------------- ----------- -----------
Interest income 67,295 123,392
---------------------------------------------- ----------- -----------
Exchange gains 6,688 7,350
---------------------------------------------- ----------- -----------
Other net financing income in respect of
pension plans 1,228 4,619
---------------------------------------------- ----------- -----------
--------- ---------
---------------------------------------------- ----------- -----------
75,211 135,361
---------------------------------------------- ----------- -----------
--------- ---------
---------------------------------------------- ----------- -----------
Finance costs
---------------------------------------------- ----------- -----------
Interest expense (350,222) (378,563)
---------------------------------------------- ----------- -----------
Exchange losses (13,067) (44,344)
---------------------------------------------- ----------- -----------
Other net financing expense in respect
of pension plans (803) (24)
---------------------------------------------- ----------- -----------
---------- ----------
---------------------------------------------- ----------- -----------
Finance costs before separately disclosed
items (364,092) (422,931)
---------------------------------------------- ----------- -----------
Adjusted for separately disclosed items
(refer to note 11) (10,373) (10,770)
---------------------------------------------- ----------- -----------
---------- ----------
---------------------------------------------- ----------- -----------
Finance costs after separately disclosed
items (374,465) (433,701)
---------------------------------------------- ----------- -----------
====== ======
---------------------------------------------- ----------- -----------
Net finance costs after separately disclosed
items (299,254) (298,340)
---------------------------------------------- ----------- -----------
====== ======
---------------------------------------------- ----------- -----------
10 Income tax
The major components of income tax expense for the year ended
31December:
2012 2011
----------------------------------------- ---------- ---------
USD'000 USD'000
----------------------------------------- ---------- ---------
Current income tax expense
----------------------------------------- ---------- ---------
Current year 108,912 58,190
----------------------------------------- ---------- ---------
Adjustment for prior periods (20,738) 2,538
----------------------------------------- ---------- ---------
-------- --------
----------------------------------------- ---------- ---------
88,174 60,728
----------------------------------------- ---------- ---------
Deferred tax credits (15,220) (1,686)
----------------------------------------- ---------- ---------
-------- --------
----------------------------------------- ---------- ---------
72,954 59,042
----------------------------------------- ---------- ---------
-------- --------
----------------------------------------- ---------- ---------
Income tax expense 72,954 59,042
----------------------------------------- ---------- ---------
Tax on separately disclosed items - 7,211
----------------------------------------- ---------- ---------
--------- --------
----------------------------------------- ---------- ---------
Total tax expenses 72,954 66,253
----------------------------------------- ---------- ---------
Share of income tax of equity-accounted
investees 38,189 42,321
----------------------------------------- ---------- ---------
--------- --------
----------------------------------------- ---------- ---------
Total tax charge 111,143 108,574
----------------------------------------- ---------- ---------
===== =====
----------------------------------------- ---------- ---------
Current income tax liabilities 180,267 169,585
----------------------------------------- ---------- ---------
===== =====
----------------------------------------- ---------- ---------
All tax items included within separately disclosed items are
detailed in note 11.
The Group is not subject to income tax on its UAE operations.
The tax expense relates to the tax payable on the profit earned by
the overseas subsidiaries, associates and joint ventures as
adjusted in accordance with the taxation laws and regulations of
the countries in which they operate. The applicable tax rates in
the regions in which the Group operates are set out below:
Geographical segments Applicable corporate tax rate
-------------------------------------- ------------------------------
Asia Pacific and Indian subcontinent 16.5% to 35.0%
-------------------------------------- ------------------------------
Australia and Americas 15.0% to 36.0%
-------------------------------------- ------------------------------
Middle East, Europe and Africa 0% to 34.0%
-------------------------------------- ------------------------------
===========
----------------------------------------------------------------------
10 Income tax (continued)
The relationship between the tax expense and the accounting
profit can be explained as follows:
2012 2011
--------------------------------------------- ------- ----------- ------------
USD'000 USD'000
--------------------------------------------- ------- ----------- ------------
Net profit before tax 899,661 817,456
------------------------------------------------------ ----------- ------------
====== ======
--------------------------------------------- ------- ----------- ------------
Tax at the Group's domestic tax rate - -
--------------------------------------------- ------- ----------- ------------
Higher income tax on foreign earnings 182,888 439,146
------------------------------------------------------ ----------- ------------
Permanent differences including non-taxable
income and non-deductible expenses (86,530) (385,070)
------------------------------------------------------ ----------- ------------
Tax charge on equity-accounted investees 38,189 42,321
------------------------------------------------------ ----------- ------------
Current year losses not recognised
for deferred tax asset 31,785 29,978
------------------------------------------------------ ----------- ------------
Brought forward losses utilised (32,691) (247)
------------------------------------------------------ ----------- ------------
Deferred tax in respect of fair value
adjustments (43,036) (28,529)
------------------------------------------------------ ----------- ------------
Others 11,933 (547)
------------------------------------------------------ ----------- ------------
--------- ---------
--------------------------------------------- ------- ----------- ------------
Tax expense before prior year adjustments 102,538 97,052
------------------------------------------------------ ----------- ------------
Tax (over)/ under provided in prior
periods:
--------------------------------------------- ------- ----------- ------------
-current tax (20,738) 2,538
------------------------------------------------------ ----------- ------------
-deferred tax 29,343 8,984
------------------------------------------------------ ----------- ------------
--------- ---------
--------------------------------------------- ------- ----------- ------------
Total tax expense from operations 111,143 108,574
------------------------------------------------------ ----------- ------------
Adjustment for separately disclosed
items - (7,211)
------------------------------------------------------ ----------- ------------
--------- ---------
--------------------------------------------- ------- ----------- ------------
Total tax expenses (A) 111,143 101,363
--------------------------------------------- ------- ----------- ------------
===== ======
--------------------------------------------- ------- ----------- ------------
Net profit before tax 899,661 817,456
------------------------------------------------------ ----------- ------------
Adjustment for separately disclosed
items (191,691) (226,675)
------------------------------------------------------ ----------- ------------
Adjustment to share of income tax of
equity-accounted investees 38,189 42,321
------------------------------------------------------ ----------- ------------
---------- ----------
--------------------------------------------- ------- ----------- ------------
Adjusted profit before tax and before
separately
--------------------------------------------- ------- ----------- ------------
disclosed items (B) 746,159 633,102
--------------------------------------------- ------- ----------- ------------
====== ======
--------------------------------------------- ------- ----------- ------------
Effective tax rate before separately
disclosed items (A/B) 14.90% 16.01%
--------------------------------------------- ------- ----------- ------------
===== =====
----------------------------------------------------- ----------- ------------
Unrecognised deferred tax assets
Deferred tax is not recognised on trading losses of USD 486,771
thousand (2011: USD 428,749 thousand) where utilisation is
uncertain, either because they have not been agreed with tax
authorities, or because the likelihood of future taxable profits is
not sufficiently certain, or because of the impact of tax holidays
on infrastructure projects. Under current legislation, USD 331,196
thousand (2011: USD 303,676 thousand) of these trading losses can
be carried forward indefinitely.
Deferred tax is also not recognised on capital and other losses
of USD 288,722 thousand (2011: USD 356,423 thousand) due to the
fact that their utilisation is uncertain.
DP World Limited and its subsidiaries
Notes to consolidated financial statements (continued)
10 Income tax (continued)
Movement in temporary differences during the year:
Recognised in
1 January consolidated Translation and 31 December
2012 income statement other movements 2012
------------------------------------------ ------------- ------------------ ----------------- -------------
USD'000 USD'000 USD'000 USD'000
------------------------------------------ ------------- ------------------ ----------------- -------------
Deferred tax liabilities
------------------------------------------ ------------- ------------------ ----------------- -------------
Property, plant and equipment 136,879 13,480 (2,006) 148,353
------------------------------------------ ------------- ------------------ ----------------- -------------
Investment in equity-accounted investees 21,219 10,985 755 32,959
------------------------------------------ ------------- ------------------ ----------------- -------------
Fair value adjustment on acquisitions 492,053 (40,563) 8,696 460,186
------------------------------------------ ------------- ------------------ ----------------- -------------
Others 428,204 888 341 429,433
------------------------------------------ ------------- ------------------ ----------------- -------------
------------ --------- -------- ------------
------------------------------------------ ------------- ------------------ ----------------- -------------
Total 1,078,355 (15,210) 7,786 1,070,931
------------------------------------------ ------------- ------------------ ----------------- -------------
======= ===== ==== =======
------------------------------------------ ------------- ------------------ ----------------- -------------
Deferred tax assets
------------------------------------------ ------------- ------------------ ----------------- -------------
Property, plant and equipment 6,531 (3,377) 584 3,738
------------------------------------------ ------------- ------------------ ----------------- -------------
Pension and post-employment benefits 9,488 (919) 1,534 10,103
------------------------------------------ ------------- ------------------ ----------------- -------------
Financial instruments 14,185 - 10,511 24,696
------------------------------------------ ------------- ------------------ ----------------- -------------
Provisions 32,546 (27,741) 477 5,282
------------------------------------------ ------------- ------------------ ----------------- -------------
Tax value of losses carried forward
recognised 22,793 32,430 (6,740) 48,483
------------------------------------------ ------------- ------------------ ----------------- -------------
Others 15,669 (383) (1,835) 13,451
------------------------------------------ ------------- ------------------ ----------------- -------------
---------- --------- -------- ----------
------------------------------------------ ------------- ------------------ ----------------- -------------
Total 101,212 10 4,531 105,753
------------------------------------------ ------------- ------------------ ----------------- -------------
====== ===== ===== ======
------------------------------------------ ------------- ------------------ ----------------- -------------
11 Separately disclosed items
2012 2011
---------------------------------------------- ----------- -------------
USD'000 USD'000
---------------------------------------------- ----------- -------------
Impairment of assets and restructuring
costs (55,850) (243,862)
---------------------------------------------- ----------- -------------
Share of profit/ (loss) of equity-accounted
investees 20,710 (3,047)
---------------------------------------------- ----------- -------------
Profit on sale and termination of business 237,204 484,354
---------------------------------------------- ----------- -------------
Ineffective interest rate swaps and currency
options (10,373) (10,770)
---------------------------------------------- ----------- -------------
Income tax expense - (7,211)
---------------------------------------------- ----------- -------------
---------- ------------
---------------------------------------------- ----------- -------------
191,691 219,464
---------------------------------------------- ----------- -------------
====== =======
---------------------------------------------- ----------- -------------
Impairment of assets and restructuring costs represents the
following:
Impairment of property, plant and equipment of USD 14,100
thousand in the 'Middle East, Europe and Africa' region and USD
35,800 thousand in the 'Australia and Americas' region. USD 5,500
thousand relates to the restructuring costs of a subsidiary in the
'Middle East, Europe and Africa' region and USD 450 thousand in the
'Australia and Americas' region. The impairment is mainly due to
significant adverse effects in the market and economic condition
which are outside the control of the Group (2011: Impairment of
property, plant and equipment of USD 29,993 thousand in the
'Australia and Americas' region and USD 22,890 thousand in the
'Middle East, Europe and Africa' region. Impairment of net assets
in a subsidiary of USD 99,963 thousand in the 'Asia Pacific and
Indian subcontinent' region representing the difference between the
value in use and the carrying amount as at the reporting date.
Impairment of USD 91,016 thousand of investments in
equity-accounted investees in the 'Middle East, Europe and Africa'
region, representing the difference between the fair value less
cost to sell and the carrying amount as at the reporting date).
Share of profit/ (loss) of equity-accounted investees includes
USD 11,717 thousandshare of equity earnings of a joint venture upon
sale of an entity within this group in the 'Australia and Americas'
region and USD 8,993 thousand share of profit on transfer of
certain assets by an associate in the 'Asia Pacific and Indian
subcontinent' region. (2011: represents USD 3,047 thousand
impairment of deferred tax assets in an equity-accounted investee
in the 'Middle East, Europe and Africa' region).
Profit on sale and termination of businesses represents:
-- USD 193,533 thousand profit on monetisation of investments in
equity-accounted investees in the 'Middle East, Europe and Africa'
region.
-- USD 53,288 thousand profit on monetisation of investments in
an equity-accounted investeein the 'Australia and Americas' region,
offset by a tax charge of USD 7,937 thousand.
-- USD 6,312 thousand loss on termination of a concession in the
'Middle East, Europe and Africa' region.
-- USD 4,632 thousand profit on monetisation of a subsidiary in
the 'Middle East, Europe and Africa' region. (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 businesses includes foreign exchange reserves
recycled to the consolidated income statement on account of loss of
control. This is offset by USD 951 thousand loss on termination of
a non-core business in the 'Asia Pacific and Indian subcontinent'
region).
Ineffective interest rate swaps and currency options: USD 10,373
thousand relates to the loss on ineffective interest rate swaps in
the 'Asia Pacific and Indian subcontinent' region. (2011:
represents USD 10,770 thousand loss on foreign currency options in
the 'Australia and Americas' region).
11 Separately disclosed items (continued)
Income tax expense: 2012 : Nil (2011: represents USD 12,785
thousand of deferred tax assets impaired in a subsidiary in the
'Middle East, Europe and Africa' region which is offset by USD
5,574 thousand of tax credit on impairment of assets in the
'Australia and Americas' region).
12 Property, plant and equipment
Capital
Land and Plant work-
buildings and equipment Ships in-progress Total
----------------------------- ------------- --------------- ----------- ------------- -------------
USD'000 USD'000 USD'000 USD'000 USD'000
----------------------------- ------------- --------------- ----------- ------------- -------------
Cost
----------------------------- ------------- --------------- ----------- ------------- -------------
As at 1 January 2012 3,069,584 2,486,928 216,479 791,760 6,564,751
----------------------------- ------------- --------------- ----------- ------------- -------------
Additions during
the year 7,530 39,771 48,582 546,051 641,934
----------------------------- ------------- --------------- ----------- ------------- -------------
Transfers from capital
work-in-progress 27,347 51,097 - (78,444) -
----------------------------- ------------- --------------- ----------- ------------- -------------
Translation adjustment (2,815) (2,667) (9,000) 59,650 45,168
----------------------------- ------------- --------------- ----------- ------------- -------------
Disposals (3,662) (68,093) (15,700) (2,211) (89,666)
----------------------------- ------------- --------------- ----------- ------------- -------------
Disposal of subsidiaries (24,400) (44,756) - - (69,156)
----------------------------- ------------- --------------- ----------- ------------- -------------
------------ ------------ ---------- ---------- ------------
----------------------------- ------------- --------------- ----------- ------------- -------------
As at 31 December
2012 3,073,584 2,462,280 240,361 1,316,806 7,093,031
----------------------------- ------------- --------------- ----------- ------------- -------------
------------ ------------ ---------- ---------- ------------
----------------------------- ------------- --------------- ----------- ------------- -------------
Depreciation and
impairment
----------------------------- ------------- --------------- ----------- ------------- -------------
As at 1 January 2012 482,535 883,323 74,773 - 1,440,631
----------------------------- ------------- --------------- ----------- ------------- -------------
Charge for the year 137,944 138,964 13,103 - 290,011
----------------------------- ------------- --------------- ----------- ------------- -------------
Impairment (refer
to note 11) 4,900 19,000 26,000 - 49,900
----------------------------- ------------- --------------- ----------- ------------- -------------
Translation adjustment 1,640 4,424 276 - 6,340
----------------------------- ------------- --------------- ----------- ------------- -------------
On disposals (2,752) (57,661) (10,300) - (70,713)
----------------------------- ------------- --------------- ----------- ------------- -------------
On disposal of subsidiaries (9,500) (26,900) - - (36,400)
----------------------------- ------------- --------------- ----------- ------------- -------------
---------- ---------- --------- ---------- ------------
----------------------------- ------------- --------------- ----------- ------------- -------------
As at 31 December
2012 614,767 961,150 103,852 - 1,679,769
----------------------------- ------------- --------------- ----------- ------------- -------------
---------- ----------- --------- ---------- ------------
----------------------------- ------------- --------------- ----------- ------------- -------------
Net book value
----------------------------- ------------- --------------- ----------- ------------- -------------
As at 31 December
2012 2,458,817 1,501,130 136,509 1,316,806 5,413,262
----------------------------- ------------- --------------- ----------- ------------- -------------
======= ======= ====== ====== =======
----------------------------- ------------- --------------- ----------- ------------- -------------
In the prior years, the Group had entered into agreements with
third parties pursuant to which the Group participated in a series
of linked transactions including leasing and sub-leasing of certain
cranes of the Group ("the Crane French Lease Arrangements"). At 31
December 2012, cranes with aggregate net book value amounting to
USD 288,710 thousand (2011: USD 304,449 thousand) were covered by
these Crane French Lease Arrangements. These cranes are accounted
for as property, plant and equipment as the Group retains all the
risks and rewards incidental to the ownership of the underlying
assets.
At 31 December 2012, property, plant and equipment with a
carrying amount of USD 2,391,298 thousand (2011: USD 1,148,903
thousand) are pledged to secure bank loans (refer to note 25). At
31 December 2012, the net carrying value of the leased plant and
equipment and other assets was USD 48,796 thousand (2011: USD
59,067 thousand).
Borrowing costs capitalised to property, plant and equipment
amounted to USD 44,900 thousand (2011: USD 10,512 thousand) with a
capitalisation rate in the range of 4.68 % to 5.13% per annum
(2011: 4.73% to 5.08% per annum).
12 Property, plant and equipment (continued)
Land and Plant and Capital
buildings equipment Ships work- in-progress Total
------------------------ ------------- ------------- ----------- ------------------- -------------
USD'000 USD'000 USD'000 USD'000 USD'000
------------------------ ------------- ------------- ----------- ------------------- -------------
Cost
------------------------ ------------- ------------- ----------- ------------------- -------------
As at 1 January 2011 3,000,931 2,491,086 131,080 604,271 6,227,368
------------------------ ------------- ------------- ----------- ------------------- -------------
Acquired through
business
combination 29,099 - - - 29,099
------------------------ ------------- ------------- ----------- ------------------- -------------
Additions during
the year 8,342 22,827 73,951 344,388 449,508
------------------------ ------------- ------------- ----------- ------------------- -------------
Transfers from capital
work-in-progress 73,911 59,061 7,031 (140,003) -
------------------------ ------------- ------------- ----------- ------------------- -------------
Translation adjustment (19,881) (52,201) 4,417 (16,896) (84,561)
------------------------ ------------- ------------- ----------- ------------------- -------------
Disposals (22,818) (33,845) - - (56,663)
------------------------ ------------- ------------- ----------- ------------------- -------------
------------ ------------ ---------- ---------- ------------
------------------------ ------------- ------------- ----------- ------------------- -------------
As at 31 December
2011 3,069,584 2,486,928 216,479 791,760 6,564,751
------------------------ ------------- ------------- ----------- ------------------- -------------
------------ ------------ ---------- ---------- ------------
------------------------ ------------- ------------- ----------- ------------------- -------------
Depreciation and
impairment
------------------------ ------------- ------------- ----------- ------------------- -------------
As at 1 January 2011 364,690 756,326 20,135 - 1,141,151
------------------------ ------------- ------------- ----------- ------------------- -------------
Charge for the year 106,763 163,266 22,848 - 292,877
------------------------ ------------- ------------- ----------- ------------------- -------------
Impairment (refer
to note 11) 17,918 4,932 30,033 - 52,883
------------------------ ------------- ------------- ----------- ------------------- -------------
Translation adjustment (4,089) (11,173) 1,757 - (13,505)
------------------------ ------------- ------------- ----------- ------------------- -------------
On disposals (2,747) (30,028) - - (32,775)
------------------------ ------------- ------------- ----------- ------------------- -------------
---------- ---------- --------- ---------- ------------
------------------------ ------------- ------------- ----------- ------------------- -------------
As at 31 December
2011 482,535 883,323 74,773 - 1,440,631
------------------------ ------------- ------------- ----------- ------------------- -------------
---------- ----------- --------- ---------- ------------
------------------------ ------------- ------------- ----------- ------------------- -------------
Net book value
------------------------ ------------- ------------- ----------- ------------------- -------------
As at 31 December
2011 2,587,049 1,603,605 141,706 791,760 5,124,120
------------------------ ------------- ------------- ----------- ------------------- -------------
======= ======= ====== ====== =======
------------------------ ------------- ------------- ----------- ------------------- -------------
13 Goodwill and port concession rights
Port concession
Goodwill rights Total
------------------------ ------------- ---------------- -------------
USD'000 USD'000 USD'000
------------------------ ------------- ---------------- -------------
Cost
------------------------ ------------- ---------------- -------------
As at 1 January 2012 1,607,655 3,941,977 5,549,632
------------------------ ------------- ---------------- -------------
Additions - 43,017 43,017
------------------------ ------------- ---------------- -------------
Re-classification - (37,991) (37,991)
------------------------ ------------- ---------------- -------------
Disposals (58,237) (1,613) (59,850)
------------------------ ------------- ---------------- -------------
Translation adjustment 39,500 (10,742) 28,758
------------------------ ------------- ---------------- -------------
------------ ------------ ------------
------------------------ ------------- ---------------- -------------
As at 31 December 2012 1,588,918 3,934,648 5,523,566
------------------------ ------------- ---------------- -------------
------------ ------------ ------------
------------------------ ------------- ---------------- -------------
Amortisation
------------------------ ------------- ---------------- -------------
As at 1 January 2012 - 718,019 718,019
------------------------ ------------- ---------------- -------------
Charge for the year - 120,621 120,621
------------------------ ------------- ---------------- -------------
On disposals - (1,332) (1,332)
------------------------ ------------- ---------------- -------------
Translation adjustment - (17,744) (17,744)
------------------------ ------------- ---------------- -------------
----------- ---------- ----------
------------------------ ------------- ---------------- -------------
As at 31 December 2012 - 819,564 819,564
------------------------ ------------- ---------------- -------------
----------- ---------- ----------
------------------------ ------------- ---------------- -------------
Net book value
------------------------ ------------- ---------------- -------------
As at 31 December 2012 1,588,918 3,115,084 4,704,002
------------------------ ------------- ---------------- -------------
======= ======= =======
------------------------ ------------- ---------------- -------------
13 Goodwill and port concession rights (continued)
Port concession rights include concession agreements which are
mainly accounted for as business combinations and acquisitions.
These concessions were determined to have finite and indefinite
useful lives based on the terms of the respective concession
agreements and the income approach model was used for the purpose
of determining their fair values.
At 31 December 2012, port concession rights with a carrying
amount of USD 502,896 thousand (2011: USD 344,668 thousand) are
pledged to secure bank loans (refer to note 25).
Port concession
Goodwill rights Total
------------------------------------ ------------- ---------------- -------------
USD'000 USD'000 USD'000
------------------------------------ ------------- ---------------- -------------
Cost
------------------------------------ ------------- ---------------- -------------
As at 1 January 2011 1,670,301 4,118,142 5,788,443
------------------------------------ ------------- ---------------- -------------
Acquired through business
combination (refer to note 30) 9,693 32,474 42,167
------------------------------------ ------------- ---------------- -------------
Additions - 31,673 31,673
------------------------------------ ------------- ---------------- -------------
Impairment loss (12,790) - (12,790)
------------------------------------ ------------- ---------------- -------------
Disposals - (2,385) (2,385)
------------------------------------ ------------- ---------------- -------------
Translation adjustment (59,549) (237,927) (297,476)
------------------------------------ ------------- ---------------- -------------
------------ ------------ ------------
------------------------------------ ------------- ---------------- -------------
As at 31 December 2011 1,607,655 3,941,977 5,549,632
------------------------------------ ------------- ---------------- -------------
------------ ------------ ------------
------------------------------------ ------------- ---------------- -------------
Amortisation and impairment losses
------------------------------------ ------------- ---------------- -------------
As at 1 January 2011 - 540,329 540,329
------------------------------------ ------------- ---------------- -------------
Charge for the year - 136,234 136,234
------------------------------------ ------------- ---------------- -------------
Impairment loss - 96,710 96,710
------------------------------------ ------------- ---------------- -------------
On disposals - (1,642) (1,642)
------------------------------------ ------------- ---------------- -------------
Translation adjustment - (53,612) (53,612)
------------------------------------ ------------- ---------------- -------------
----------- ---------- ----------
------------------------------------ ------------- ---------------- -------------
As at 31 December 2011 - 718,019 718,019
------------------------------------ ------------- ---------------- -------------
----------- ---------- ----------
------------------------------------ ------------- ---------------- -------------
Net book value
------------------------------------ ------------- ---------------- -------------
As at 31 December 2011 1,607,655 3,223,958 4,831,613
------------------------------------ ------------- ---------------- -------------
======= ======= =======
------------------------------------ ------------- ---------------- -------------
14 Impairment testing
Goodwill acquired through business combinations and port
concession rights with indefinite useful lives have been allocated
to various cash-generating units ("CGU"), which are reportable
business units, for the purposes of impairment testing.
Impairment testing is done at an operating port level that
represents an individual CGU. Details of the CGUs by operating
segment are shown below:
Carrying amount Carrying amount Discount Perpetuity
of goodwill of port concession rates growth
rights with rate
indefinite useful
life
--------------------- ---------------------------- -------------------------- ---------- -----------
2012 2011 2012 2011
--------------------- ------------- ------------- ------------- ----------- ---------- -----------
USD'000 USD'000 USD'000 USD'000
--------------------- ------------- ------------- ------------- ----------- ---------- -----------
Cash-generating
units
aggregated by
operating
segment
--------------------- ------------- ------------- ------------- ----------- ---------- -----------
Asia Pacific and
Indian 8.00% -
subcontinent 224,868 233,123 - - 15.50% 2.50%
--------------------- ------------- ------------- ------------- ----------- ---------- -----------
Australia and 8.00% -
Americas 271,309 323,104 - - 14.50% 2.50%
--------------------- ------------- ------------- ------------- ----------- ---------- -----------
Middle East, Europe
and 7.00% - 2.50%
Africa 1,092,741 1,051,428 1,030,134 989,012 12.50% - 2.60%
--------------------- ------------- ------------- ------------- ----------- ---------- -----------
------------ ------------ ------------ ----------
--------------------- ------------- ------------- ------------- ----------- ---------- -----------
Total 1,588,918 1,607,655 1,030,134 989,012
--------------------- ------------- ------------- ------------- ----------- ---------- -----------
======= ====== ======= ======
--------------------- ------------- ------------- ------------- ----------- ---------- -----------
The recoverable amount of the CGU has been determined based on
their value in use calculated using cash flow projections based on
the financial budgets approved by management covering a three year
period and a further outlook for five years, which is considered
appropriate in view of the outlook for the industry and the
long-term nature of the concession agreements held i.e. generally
for a period of 25 -50 years.
Key assumptions used in value in use calculations
The followingdescribes each key assumption on which management
has based its cash flow projections to undertake impairment testing
of goodwill and port concession rights with indefinite useful
lives.
Budgeted margins - The basis used to determine the value
assigned to the budgeted margin is the average gross margin
achieved in the year immediately before the budgeted year, adjusted
for expected efficiency improvements, price fluctuations and
manpower costs.
Discount rates - These represent the cost of capital adjusted
for the respective location risk factors. The Group uses the
post-tax Weighted Average Cost of Capital which reflects the
country specific risk adjusted discount rate.
Cost inflation - The forecast general price index is used to
determine the cost inflation during the budget year for the
relevant countries where the Group is operating.
Perpetuity growth rate - In management's view, the perpetuity
growth rate is the minimum growth rate expected to be achieved
beyond the eight year period. This is based on the overall regional
economic growth forecasted and the Group's existing internal
capacity changes for a given region. The Group also takes into
account competition and regional capacity growth to provide a
comprehensive growth assumption for the entire portfolio.
The values assigned to key assumptions are consistent with the
past experience of management.
Sensitivity to changes in assumptions
The calculation of value in use for the CGU is sensitive to
future earnings and therefore a sensitivity analysis was performed.
The analysis demonstrated that a 10% decrease in earnings for a
future period of three years from the reporting date would not
result in an impairment.
15 Investment in equity-accounted investees
Summary financial information for equity-accounted investees,
not adjusted for the percentage ownership held by the Group:
Asia Pacific and Australia and Americas Middle East, Europe Total
Indian subcontinent and Africa
------------- ---------------------------- ---------------------------- ---------------------------- --------------------------------
2012 2011 2012 2011 2012 2011 2012 2011
------------- ------------- ------------- ------------- ------------- ------------- ------------- --------------- ---------------
USD'000 USD'000 USD'000 USD'000 USD'000 USD'000 USD'000 USD'000
------------- ------------- ------------- ------------- ------------- ------------- ------------- --------------- ---------------
Current
assets 515,254 492,575 373,871 425,910 324,725 316,072 1,213,850 1,234,557
------------- ------------- ------------- ------------- ------------- ------------- ------------- --------------- ---------------
Non-current
assets 8,068,891 7,533,647 2,861,185 2,799,767 2,389,594 2,311,415 13,319,670 12,644,829
------------- ------------- ------------- ------------- ------------- ------------- ------------- --------------- ---------------
------------ ------------ ------------ ------------ ------------ ------------ -------------- --------------
------------- ------------- ------------- ------------- ------------- ------------- ------------- --------------- ---------------
Total assets 8,584,145 8,026,222 3,235,056 3,225,677 2,714,319 2,627,487 14,533,520 13,879,386
------------- ------------- ------------- ------------- ------------- ------------- ------------- --------------- ---------------
======= ======= ======= ======= ======= ======= ======== =========
------------- ------------- ------------- ------------- ------------- ------------- ------------- --------------- ---------------
Current
liabilities 666,372 511,661 168,232 236,265 209,422 181,051 1,044,026 928,977
------------- ------------- ------------- ------------- ------------- ------------- ------------- --------------- ---------------
Non-current
liabilities 1,903,811 1,528,068 1,846,981 1,458,954 1,022,209 841,070 4,773,001 3,828,092
------------- ------------- ------------- ------------- ------------- ------------- ------------- --------------- ---------------
------------ ------------ ---------- ---------- ------------ ------------ ------------ ------------
------------- ------------- ------------- ------------- ------------- ------------- ------------- --------------- ---------------
Total
liabilities 2,570,183 2,039,729 2,015,213 1,695,219 1,231,631 1,022,121 5,817,027 4,757,069
------------- ------------- ------------- ------------- ------------- ------------- ------------- --------------- ---------------
======= ======= ====== ====== ======= ======= ======= =======
------------- ------------- ------------- ------------- ------------- ------------- ------------- --------------- ---------------
Revenue 1,268,308 1,203,610 852,553 749,426 623,095 694,793 2,743,956 2,647,829
------------- ------------- ------------- ------------- ------------- ------------- ------------- --------------- ---------------
Expenses (979,062) (937,343) (846,046) (765,353) (536,398) (639,529) (2,361,506) (2,342,225)
------------- ------------- ------------- ------------- ------------- ------------- ------------- --------------- ---------------
---------- --------- --------- --------- --------- --------- ----------- ------------
------------- ------------- ------------- ------------- ------------- ------------- ------------- --------------- ---------------
Net profit/
(loss) 289,246 266,267 6,507 (15,927) 86,697 55,264 382,450 305,604
------------- ------------- ------------- ------------- ------------- ------------- ------------- --------------- ---------------
====== ====== ===== ===== ===== ===== ====== ======
------------- ------------- ------------- ------------- ------------- ------------- ------------- --------------- ---------------
The Group's share of profit from equity-accounted investees (before separately
disclosed items) 133,897 141,711
------------------------------------------------------------------------------------------------------- --------------- ---------------
====== =======
------------------------------------------------------------------------------------------------------- --------------- ---------------
The Group's investments in net assets of equity-accounted investees as at
31 December 3,348,317 3,451,264
------------------------------------------------------------------------------------------------------- --------------- ---------------
======= =======
------------------------------------------------------------------------------------------------------- --------------- ---------------
For ownership percentages in equity-accounted investees, refer to note 34.
------------------------------------------------------------------------------------------------------- --------------- ---------------
16 Other investments
2012 2011
------------------------------------------- ---------- ----------
USD'000 USD'000
------------------------------------------- ---------- ----------
Debt securities held to maturity (Note
a) 11,277 12,815
------------------------------------------- ---------- ----------
Available-for-sale financial assets (Note
b) 49,556 60,378
------------------------------------------- ---------- ----------
--------- ---------
------------------------------------------- ---------- ----------
60,833 73,193
------------------------------------------- ---------- ----------
===== =====
------------------------------------------- ---------- ----------
(a) The movement in debt securities held to maturity mainly
relates to redemption of USD 1,538 thousand during the year.
(b) Available-for-sale financial assets consist of an unquoted
investment in an Infrastructure Fund.
The movement schedule for these investments is as follows:
2012 2011
------------------------------------------------- ---------- ----------
USD'000 USD'000
------------------------------------------------- ---------- ----------
As at 1 January 60,378 51,439
------------------------------------------------- ---------- ----------
Return of capital during the year (10,690) -
------------------------------------------------- ---------- ----------
Change in fair value recognised in consolidated
statement of
other comprehensive income (132) 8,939
------------------------------------------------- ---------- ----------
--------- ---------
------------------------------------------------- ---------- ----------
As at 31 December 49,556 60,378
------------------------------------------------- ---------- ----------
===== =====
------------------------------------------------- ---------- ----------
17 Accounts receivable and prepayments
2012 2012 2012
----------------------------------- ------------ ----------- -----------
Non-current Current Total
----------------------------------- ------------ ----------- -----------
USD'000 USD'000 USD'000
----------------------------------- ------------ ----------- -----------
Trade receivables (net) - 244,534 244,534
----------------------------------- ------------ ----------- -----------
Advances paid to suppliers - 53,962 53,962
----------------------------------- ------------ ----------- -----------
Other receivables and prepayments 56,115 198,646 254,761
----------------------------------- ------------ ----------- -----------
Employee benefit assets (refer
to note 24) 216 - 216
----------------------------------- ------------ ----------- -----------
Due from related parties (refer
to note 27) 207,097 105,961 313,058
----------------------------------- ------------ ----------- -----------
---------- ---------- ----------
----------------------------------- ------------ ----------- -----------
263,428 603,103 866,531
----------------------------------- ------------ ----------- -----------
====== ====== ======
----------------------------------- ------------ ----------- -----------
2011 2011 2011
----------------------------------- ------------ ----------- -----------
Non-current Current Total
----------------------------------- ------------ ----------- -----------
USD'000 USD'000 USD'000
----------------------------------- ------------ ----------- -----------
Trade receivables (net) - 232,957 232,957
----------------------------------- ------------ ----------- -----------
Advances paid to suppliers - 28,268 28,268
----------------------------------- ------------ ----------- -----------
Other receivables and prepayments 53,425 258,700 312,125
----------------------------------- ------------ ----------- -----------
Employee benefit assets (refer
to note 24) 155 - 155
----------------------------------- ------------ ----------- -----------
Due from related parties (refer
to note 27) 206,534 104,095 310,629
----------------------------------- ------------ ----------- -----------
---------- ---------- ----------
----------------------------------- ------------ ----------- -----------
260,114 624,020 884,134
----------------------------------- ------------ ----------- -----------
====== ====== ======
----------------------------------- ------------ ----------- -----------
The Group's exposure to credit and currency risks are disclosed
in note 29.
18 Bank balances and cash
2012 2011
-------------------------------------------- -------------- -------------
USD'000 USD'000
-------------------------------------------- -------------- -------------
Cash at banks and in hand 472,409 468,673
-------------------------------------------- -------------- -------------
Short-term deposits 1,362,752 3,637,270
-------------------------------------------- -------------- -------------
Deposits under lien 46,767 53,421
-------------------------------------------- -------------- -------------
------------- ------------
-------------------------------------------- -------------- -------------
Bank balances and cash 1,881,928 4,159,364
-------------------------------------------- -------------- -------------
Bank overdrafts (195) (1,017)
-------------------------------------------- -------------- -------------
------------ ------------
-------------------------------------------- -------------- -------------
Cash and cash equivalents for consolidated
statement of cash
flows 1,881,733 4,158,347
-------------------------------------------- -------------- -------------
======= =======
-------------------------------------------- -------------- -------------
Short-term deposits are made for varying periods between one day
and three months depending on the immediate cash requirements of
the Group and earn interest at the respective short-term deposit
market rates. Bank overdrafts are repayable on demand.
The deposits under lien amounting to USD 46,767 thousand (2011:
USD 53,421 thousand) are placed to collateralise some of the
borrowings of the Company's subsidiaries.
19 Share capital
The share capital of the Company as at 31 December was as
follows:
2012 2011
-------------------------------- ---------- ----------
USD'000 USD'000
-------------------------------- ---------- ----------
Authorised
-------------------------------- ---------- ----------
1,250,000,000 of USD 2.00 each 2,500,000 2,500,000
-------------------------------- ---------- ----------
======= ========
-------------------------------- ---------- ----------
Issued and fully paid
-------------------------------- ---------- ----------
830,000,000 of USD 2.00 each 1,660,000 1,660,000
-------------------------------- ---------- ----------
======= =======
-------------------------------- ---------- ----------
20 Reserves
Share premium
Share premium represents surplus received over and above the
nominal cost of the shares issued to the shareholders and forms
part of the shareholder equity. The reserve is not available for
distribution except in circumstances as stipulated by the law.
Shareholders' reserve
Shareholders' reserve forms part of the distributable reserves
of the Group.
Hedging reserve
The hedging reserve comprises the effective portion of the
cumulative net change in the fair value of the cash flow hedging
instruments related to hedge transactions that have not yet
occurred.
20 Reserves (continued)
Other reserves
The other reserves mainly include statutory reserves of
subsidiaries as required by applicable local legislations. This
reserve also includes the unrealised fair value changes on
available-for-sale investments.
Actuarial reserve
The actuarial reserve comprises the cumulative actuarial losses
recognised in consolidated statement of other comprehensive
income.
Translation reserve
The translation reserve comprises all foreign currency
differences arising from the translation of the financial
statements of foreign operations whose functional currencies are
different from that of the Group's presentation currency. It also
includes foreign exchange translation differences arising from
translation of goodwill and purchase price adjustments which are
denominated in foreign currencies at the Group level.
21 Dividends
2012 2011
--------------------------------------------- ---------- ----------
USD'000 USD'000
--------------------------------------------- ---------- ----------
Declared and paid during the year:
--------------------------------------------- ---------- ----------
Final dividend 24 US cents per share/
17 US cents per share 199,200 142,760
--------------------------------------------- ---------- ----------
====== ======
--------------------------------------------- ---------- ----------
Proposed for approval at the annual general
meeting
--------------------------------------------- ---------- ----------
(not recognised as a liability as at 31
December):
--------------------------------------------- ---------- ----------
Final dividend: 24 US cents per share/
24 US cents per share 199,200 199,200
--------------------------------------------- ---------- ----------
===== ======
--------------------------------------------- ---------- ----------
22 Earnings per share
Basic earnings per share
The calculation of basic earnings per share is based on the
profit attributable to ordinary shareholders and the weighted
average number of ordinary shares outstanding.
2012 2011
---------------------------------------------- ------------ ------------
USD'000 USD'000
---------------------------------------------- ------------ ------------
Profit attributable to ordinary shareholders 748,606 683,292
---------------------------------------------- ------------ ------------
====== ======
---------------------------------------------- ------------ ------------
Number Number of
of shares shares
---------------------------------------------- ------------ ------------
Number of ordinary shares outstanding
as at 31 December 830,000,000 830,000,000
---------------------------------------------- ------------ ------------
========= ==========
---------------------------------------------- ------------ ------------
22 Earnings per share (continued)
2012 2011
------------------------------------------ ------ ------
USD USD
------------------------------------------ ------ ------
Basic earnings per share after
------------------------------------------ ------ ------
separately disclosed items - (US cents) 90.19 82.32
------------------------------------------ ------ ------
==== ====
------------------------------------------ ------ ------
Basic earnings per share before
------------------------------------------ ------ ------
separately disclosed items - (US cents) 66.91 55.26
------------------------------------------ ------ ------
==== ====
------------------------------------------ ------ ------
The Company has no share options outstanding at the year end and
therefore the basic and diluted earnings per share are not
different.
23 Employees' end of service benefits
Movements in the provision recognised in the consolidated
statement of financial position are as follows:
2012 2011
---------------------------------- ---------- ----------
USD'000 USD'000
---------------------------------- ---------- ----------
As at 1 January 49,393 45,988
---------------------------------- ---------- ----------
Provision made during the year * 11,522 13,933
---------------------------------- ---------- ----------
Amounts paid during the year (5,168) (10,528)
---------------------------------- ---------- ----------
--------- ---------
---------------------------------- ---------- ----------
As at 31 December 55,747 49,393
---------------------------------- ---------- ----------
===== =====
---------------------------------- ---------- ----------
* The provision for expatriate staff gratuities, included in
Employees' end of service benefits, is calculated in accordance
with the regulations of the Jebel Ali Free Zone Authority. This is
based on the liability that would arise if employment of all staff
were terminated at the reporting date.
The UAE government had introduced Federal Labour Law No.7 of
1999 for pension and social security. Under this Law, employers are
required to contribute 15% of the 'contribution calculation salary'
of those employees who are UAE nationals. These employees are also
required to contribute 5% of the 'contribution calculation salary'
to the scheme. The Group's contribution is recognised as an expense
in the consolidated income statement as incurred.
24 Pension and post-employment benefits
Please refer to DP World website for note 24 in full
25 Interest bearing loans and borrowings
This note provides information about the terms of the Group's
interest-bearing loans and borrowings, which are measured at
amortised cost. Information about the Group's exposure to interest
rate, foreign currency and liquidity risk are described in note
29.
2012 2011
--------------------------- ------------- -------------
USD'000 USD'000
--------------------------- ------------- -------------
Non-current liabilities
--------------------------- ------------- -------------
Secured bank loans 669,322 720,482
--------------------------- ------------- -------------
Mortgage debenture stock 2,307 2,212
--------------------------- ------------- -------------
Unsecured loan stock 5,287 5,071
--------------------------- ------------- -------------
Unsecured bank loans 106,916 552,842
--------------------------- ------------- -------------
Unsecured bond issues 3,237,234 3,235,320
--------------------------- ------------- -------------
Finance lease liabilities 28,555 47,382
--------------------------- ------------- -------------
------------ ------------
--------------------------- ------------- -------------
4,049,621 4,563,309
--------------------------- ------------- -------------
------------ ------------
--------------------------- ------------- -------------
Current liabilities
--------------------------- ------------- -------------
Secured bank loans 203,111 100,242
--------------------------- ------------- -------------
Unsecured bank loans 484,909 3,062,653
--------------------------- ------------- -------------
Unsecured loans 3,719 3,619
--------------------------- ------------- -------------
Finance lease liabilities 11,096 11,932
--------------------------- ------------- -------------
---------- ------------
--------------------------- ------------- -------------
702,835 3,178,446
--------------------------- ------------- -------------
------------ ------------
--------------------------- ------------- -------------
Total 4,752,456 7,741,755
--------------------------- ------------- -------------
======= =======
--------------------------- ------------- -------------
25 Interest bearing loans and borrowings (continued)
Terms and debt repayment schedule
Terms and conditions of outstanding loans were as follows:
Nominal 2012
interest Year of Carrying
Currency Notes rate maturity Face value amount
--------------------- ------- ---------- ------------ ------------- -------------
USD'000 USD'000
--------------------- ------- ---------- ------------ ------------- -------------
Secured loans
--------------------- ------- ---------- ------------ ------------- -------------
EGP Variable 2013 1,868 1,868
------------------------------ ---------- ------------ ------------- -------------
EUR Variable 2017-2023 103,353 103,353
------------------------------ ---------- ------------ ------------- -------------
GBP Variable 2031 119,846 119,846
------------------------------ ---------- ------------ ------------- -------------
GBP 8.5% 2017 18,000 18,000
------------------------------ ---------- ------------ ------------- -------------
HKD Variable 2015 837 837
------------------------------ ---------- ------------ ------------- -------------
INR Variable 2015-2017 39,820 39,820
------------------------------ ---------- ------------ ------------- -------------
PKR Variable 2018 76,345 76,345
------------------------------ ---------- ------------ ------------- -------------
USD 3%-8% 2017-2022 29,794 29,794
------------------------------ ---------- ------------ ------------- -------------
USD Variable 2013-2020 481,784 481,784
------------------------------ ---------- ------------ ------------- -------------
ZAR 9.5% 2017 786 786
------------------------------ ---------- ------------ ------------- -------------
Unsecured loans
--------------------- ------- ---------- ------------ ------------- -------------
CAD Variable 2013 158,030 158,030
------------------------------ ---------- ------------ ------------- -------------
SAR Variable 2017 19,205 19,205
------------------------------ ---------- ------------ ------------- -------------
INR Variable 2014-2019 70,260 70,260
------------------------------ ---------- ------------ ------------- -------------
USD 4.14%-7% 2013-2024 29,330 29,330
------------------------------ ---------- ------------ ------------- -------------
USD 8% 2013 1,200 1,200
------------------------------ ---------- ------------ ------------- -------------
USD Variable 2013 315,000 315,000
------------------------------ ---------- ------------ ------------- -------------
EUR Variable 2013 2,519 2,519
------------------------------ ---------- ------------ ------------- -------------
Mortgage debenture
stock
--------------------- ------- ---------- ------------ ------------- -------------
GBP 3.5% undated 2,307 2,307
------------------------------ ---------- ------------ ------------- -------------
Unsecured loan
stock
--------------------- ------- ---------- ------------ ------------- -------------
GBP 7.5% undated 5,287 5,287
------------------------------ ---------- ------------ ------------- -------------
Unsecured Bond
--------------------- ------- ---------- ------------ ------------- -------------
USD 7.88% 2027 8,000 7,935
------------------------------ ---------- ------------ ------------- -------------
Unsecured sukuk
bonds
--------------------- ------- ---------- ------------ ------------- -------------
USD (b) * 2017 1,500,000 1,490,661
--------------------- ------- ---------- ------------ ------------- -------------
Unsecured MTNs
--------------------- ------- ---------- ------------ ------------- -------------
USD (b) 6.85% 2037 1,750,000 1,738,638
--------------------- ------- ---------- ------------ ------------- -------------
Finance lease
liabilities in 4.14% -
various currencies 14% 2013-2054 39,651 39,651
------------------------------ ---------- ------------ ------------- -------------
------------ ------------
--------------------- ------- ---------- ------------ ------------- -------------
4,773,222 4,752,456
----------------------------- ---------- ------------ ------------- -------------
======= =======
----------------------------- ---------- ------------ ------------- -------------
* The profit rate on this Islamic Bond is 6.25%.
25 Interest bearing loans and borrowings (continued)
Terms and debt repayment schedule
Terms and conditions of outstanding loans were as follows:
Nominal 2011
interest Year of Carrying
Currency Notes rate maturity Face value amount
--------------------- ------- ---------- ------------ ------------- -------------
USD'000 USD'000
--------------------- ------- ---------- ------------ ------------- -------------
Secured loans
--------------------- ------- ---------- ------------ ------------- -------------
EGP Variable 2013 3,099 3,099
------------------------------ ---------- ------------ ------------- -------------
EUR Variable 2017-2024 117,248 117,248
------------------------------ ---------- ------------ ------------- -------------
EUR 2% 2024 14,824 14,824
------------------------------ ---------- ------------ ------------- -------------
HKD Variable 2015 1,206 1,206
------------------------------ ---------- ------------ ------------- -------------
INR Variable 2015-2017 76,632 76,632
------------------------------ ---------- ------------ ------------- -------------
PKR Variable 2018 75,306 75,306
------------------------------ ---------- ------------ ------------- -------------
USD 3% - 8% 2013-2019 7,089 7,089
------------------------------ ---------- ------------ ------------- -------------
USD Variable 2014-2020 524,320 524,320
------------------------------ ---------- ------------ ------------- -------------
ZAR 10% 2017 1,000 1,000
------------------------------ ---------- ------------ ------------- -------------
Unsecured loans
--------------------- ------- ---------- ------------ ------------- -------------
CAD Variable 2013 167,995 167,995
------------------------------ ---------- ------------ ------------- -------------
INR Variable 2014 45,272 45,272
------------------------------ ---------- ------------ ------------- -------------
INR 11.25% 2012 28,295 28,295
------------------------------ ---------- ------------ ------------- -------------
SAR Variable 2017 23,232 23,232
------------------------------ ---------- ------------ ------------- -------------
USD 4.14% 2024 30,893 30,893
------------------------------ ---------- ------------ ------------- -------------
USD 6.21% 2012 1,000 1,000
------------------------------ ---------- ------------ ------------- -------------
USD 8% 2012 1,200 1,200
------------------------------ ---------- ------------ ------------- -------------
USD (a) Variable 2012 3,000,000 2,997,792
--------------------- ------- ---------- ------------ ------------- -------------
USD Variable 2013 309,999 309,999
------------------------------ ---------- ------------ ------------- -------------
USD Variable 2012 11,017 11,017
------------------------------ ---------- ------------ ------------- -------------
EUR Variable 2012 2,419 2,419
------------------------------ ---------- ------------ ------------- -------------
Mortgage debenture
stock
--------------------- ------- ---------- ------------ ------------- -------------
GBP 3.50% undated 2,212 2,212
------------------------------ ---------- ------------ ------------- -------------
Unsecured loan
stock
--------------------- ------- ---------- ------------ ------------- -------------
GBP 7.50% undated 5,071 5,071
------------------------------ ---------- ------------ ------------- -------------
Unsecured Bond
--------------------- ------- ---------- ------------ ------------- -------------
USD 7.88% 2027 8,000 7,935
------------------------------ ---------- ------------ ------------- -------------
Unsecured sukuk
bonds
--------------------- ------- ---------- ------------ ------------- -------------
USD (b) * 2017 1,500,000 1,488,922
--------------------- ------- ---------- ------------ ------------- -------------
Unsecured MTNs
--------------------- ------- ---------- ------------ ------------- -------------
USD (b) 6.85% 2037 1,750,000 1,738,463
--------------------- ------- ---------- ------------ ------------- -------------
Finance lease
liabilities in 4.14% -
various currencies 14% 2012-2054 59,314 59,314
------------------------------ ---------- ------------ ------------- -------------
------------ ------------
--------------------- ------- ---------- ------------ ------------- -------------
7,766,643 7,741,755
----------------------------- ---------- ------------ ------------- -------------
======= =======
----------------------------- ---------- ------------ ------------- -------------
* The profit rate on this Islamic Bond is 6.25%.
25 Interest bearing loans and borrowings (continued)
(a) During the year, the Group has repaid USD 3,000,000 thousand
outstanding under its revolving credit facility utilising its
existing cash resources.
(b) The Group has issued conventional bond of USD 1,750,000
thousand as Medium Term Note and a Sukuk (Islamic Bond) of USD
1,500,000 thousand. The Medium Term note and Sukuk are currently
listed on Nasdaq Dubai and the London Stock Exchange (LSE).
Certain property, plant and equipment and port concession rights
are pledged against the facilities obtained from the banks (refer
to note 12 and note 13). The deposits under lien amounting to USD
46,767 thousand (2011: USD 53,421 thousand) are placed to
collateralise some of the borrowings of the Company's subsidiaries
(refer to note 18).
There has been no issuance or repayment of debt securities in
the current year (2011: Nil). At 31 December 2012, the undrawn
committed borrowing facilities of USD 1,897,511 thousand (2011: USD
1,037,021 thousand) were available to the Group, in respect of
which all conditions precedent had been met.
Finance lease liabilities
The Group classifies certain property, plant and equipment as
finance leases where it retains all risks and rewards incidental to
the ownership. The net carrying values of these assets are
disclosed in note 12.
Future minimum lease payments under finance leases together with
the present value of the net minimum lease payments are as
follows:
2012
---------------------- ---------------- ---------- ----------------
Present value
Future minimum of minimum
lease payments Interest lease payments
---------------------- ---------------- ---------- ----------------
USD'000 USD'000 USD'000
---------------------- ---------------- ---------- ----------------
Less than one year 13,715 (2,619) 11,096
---------------------- ---------------- ---------- ----------------
Between one and five
years 25,938 (5,011) 20,927
---------------------- ---------------- ---------- ----------------
More than five years 15,328 (7,700) 7,628
---------------------- ---------------- ---------- ----------------
-------- --------- ---------
---------------------- ---------------- ---------- ----------------
At 31 December 54,981 (15,330) 39,651
---------------------- ---------------- ---------- ----------------
===== ===== =====
---------------------- ---------------- ---------- ----------------
2011
---------------------- ---------------- ---------- ----------------
Present value
Future minimum of minimum
lease payments Interest lease payments
---------------------- ---------------- ---------- ----------------
USD'000 USD'000 USD'000
---------------------- ---------------- ---------- ----------------
Less than one year 15,833 (3,901) 11,932
---------------------- ---------------- ---------- ----------------
Between one and five
years 43,689 (8,866) 34,823
---------------------- ---------------- ---------- ----------------
More than five years 22,647 (10,088) 12,559
---------------------- ---------------- ---------- ----------------
-------- --------- ---------
---------------------- ---------------- ---------- ----------------
At 31 December 82,169 (22,855) 59,314
---------------------- ---------------- ---------- ----------------
===== ===== =====
---------------------- ---------------- ---------- ----------------
The finance leases do not contain any escalation clauses and do
not provide for contingent rents.
26 Accounts payable and accruals
2012
------------------------------------ ------------ ----------- -------------
Non-current Current Total
------------------------------------ ------------ ----------- -------------
USD'000 USD'000 USD'000
------------------------------------ ------------ ----------- -------------
Trade payables - 115,415 115,415
------------------------------------ ------------ ----------- -------------
Other payables and accruals 384,248 642,625 1,026,873
------------------------------------ ------------ ----------- -------------
Provisions * 499 41,000 41,499
------------------------------------ ------------ ----------- -------------
Fair value of derivative financial
instruments 120,008 41,850 161,858
------------------------------------ ------------ ----------- -------------
Amounts due to related parties
(refer to note 27) - 13,182 13,182
------------------------------------ ------------ ----------- -------------
---------- ---------- ------------
------------------------------------ ------------ ----------- -------------
As at 31 December 504,755 854,072 1,358,827
------------------------------------ ------------ ----------- -------------
====== ====== =======
------------------------------------ ------------ ----------- -------------
2011
------------------------------------ ------------ ----------- -------------
Non-current Current Total
------------------------------------ ------------ ----------- -------------
USD'000 USD'000 USD'000
------------------------------------ ------------ ----------- -------------
Trade payables - 138,616 138,616
------------------------------------ ------------ ----------- -------------
Other payables and accruals 386,071 549,699 935,770
------------------------------------ ------------ ----------- -------------
Provisions * 269 26,479 26,748
------------------------------------ ------------ ----------- -------------
Fair value of derivative financial
instruments 80,900 53,336 134,236
------------------------------------ ------------ ----------- -------------
Amounts due to related parties
(refer to note 27) - 12,272 12,272
------------------------------------ ------------ ----------- -------------
---------- ---------- ------------
------------------------------------ ------------ ----------- -------------
As at 31 December 467,240 780,402 1,247,642
------------------------------------ ------------ ----------- -------------
====== ====== =======
------------------------------------ ------------ ----------- -------------
* During the current year, additional provision of USD 33,451
thousand was made (2011: USD 13,598 thousand) and an amount of USD
18,700 thousand was utilised (2011: USD 31,550 thousand).
27 Related party transactions
For the purpose of these consolidated financial statements,
parties are considered to be related to the Group, if the Group has
the ability, directly or indirectly, to control the party or
exercise significant influence over it in making financial and
operating decisions, or vice versa, or where the Group and the
party are subject to common control or significant influence i.e.
part of the same Parent Group.
Related parties represent associated companies, shareholders,
directors and key management personnel of the Group, the Parent
Company, Ultimate Parent Company (Dubai World Corporation) and
entities jointly controlled or significantly influenced by such
parties. Pricing policies and terms of these transactions are
approved by the Group's management. The terms and conditions of the
related party transactions were made on an arm's length basis.
The Ultimate Parent Company operates a Shared Services Unit
("SSU") which recharges the proportionate costs of services
provided to the Group. SSU also processes the payroll for the
Company and certain subsidiaries and recharges the respective
payroll costs.
27 Related party transactions (continued)
Transactions with related parties included in the consolidated
financial statements are as follows:
Equity-
accounted Other related 2012
investees parties Total
----------------------- ----------- -------------- --------
USD'000 USD'000 USD'000
----------------------- ----------- -------------- --------
Expenses charged:
----------------------- ----------- -------------- --------
Concession fee - 48,169 48,169
----------------------- ----------- -------------- --------
Shared services - 2,354 2,354
----------------------- ----------- -------------- --------
Other services - 29,249 29,249
----------------------- ----------- -------------- --------
Revenue earned:
----------------------- ----------- -------------- --------
Management fee income 24,889 - 24,889
----------------------- ----------- -------------- --------
===== ===== =====
----------------------- ----------- -------------- --------
Equity-
accounted Other related 2011
investees parties Total
----------------------- ----------- -------------- --------
USD'000 USD'000 USD'000
----------------------- ----------- -------------- --------
Expenses charged:
----------------------- ----------- -------------- --------
Concession fee - 48,166 48,166
----------------------- ----------- -------------- --------
Shared services - 9,259 9,259
----------------------- ----------- -------------- --------
Other services - 20,676 20,676
----------------------- ----------- -------------- --------
Revenue earned:
----------------------- ----------- -------------- --------
Management fee income 23,248 - 23,248
----------------------- ----------- -------------- --------
===== ===== =====
----------------------- ----------- -------------- --------
Balances with related parties included in the consolidated
statement of financial position are as follows:
Due from related parties Due to related parties
------------------------- --------------------------- -------------------------
2012 2011 2012 2011
------------------------- ------------- ------------ ------------ -----------
USD'000 USD'000 USD'000 USD'000
------------------------- ------------- ------------ ------------ -----------
Ultimate Parent Company 1,871 2,730 194 -
------------------------- ------------- ------------ ------------ -----------
Parent Company 53,450 54,154 - -
------------------------- ------------- ------------ ------------ -----------
Equity-accounted
investees 232,973 232,052 124 386
------------------------- ------------- ------------ ------------ -----------
Other related parties 24,764 21,693 12,864 11,886
------------------------- ------------- ------------ ------------ -----------
---------- ---------- --------- ---------
------------------------- ------------- ------------ ------------ -----------
313,058 310,629 13,182 12,272
------------------------- ------------- ------------ ------------ -----------
====== ====== ===== =====
------------------------- ------------- ------------ ------------ -----------
Guarantees issued on behalf of equity-accounted investees amount
to USD 98,720 thousand (2011: USD 12,020 thousand).
27 Related party transactions (continued)
Compensation of key management personnel
The remuneration of directors and other key members of the
management during the year were as follows:
2012 2011
------------------------------- -------- --------
USD'000 USD'000
------------------------------- -------- --------
Short-term benefits and bonus 8,135 8,620
------------------------------- -------- --------
Post retirement benefits 720 722
------------------------------- -------- --------
------- -------
------------------------------- -------- --------
8,855 9,342
------------------------------- -------- --------
==== ====
------------------------------- -------- --------
28 Assets held for sale
2012 2011
--------------------------------------- --------- --------
USD'000 USD'000
--------------------------------------- --------- --------
Middle East, Europe and Africa region - 77,706
--------------------------------------- --------- --------
===== ======
------------------------------------------------- --------
Assets held for sale in 2011 represent the investments in
Tilbury Container Services Limited which was disposed in January
2012.
29 Financial instruments
Please refer to DP World website for Note 29 in full
30 Business combination
There were no business combinations in 2012.
2011
On 16 August 2011, the Company acquired 60% interest in Integra
Port Services N.V and Suriname Port Services N.V ("Suriname Group")
for a total cost of USD 31,315 thousand (net of cash). The Suriname
Group is engaged in the ports business in the Republic of
Suriname.
This acquisition has resulted in recognition of goodwill of USD
9,693 thousand, port concession rights of USD 32,474 thousand and
non-controlling interest of USD 15,753 thousand.
From the date of acquisition, Suriname Group has contributed
revenue of USD 5,898 thousand and profit of USD 1,567 thousand. If
the acquisition had taken place at the beginning of the year, the
revenue would have been USD 15,600 thousand and profit would have
been USD 4,144 thousand.
31 Operating leases
Operating lease commitments - Group as a lessee
Future minimum rentals payable under non-cancellable operating
leases as at 31 December are as follows:
2012 2011
-------------------------------- ------------- --------------
USD'000 USD'000
-------------------------------- ------------- --------------
Within one year 303,685 192,961
-------------------------------- ------------- --------------
Between one to five years 735,859 711,097
-------------------------------- ------------- --------------
Between five to ten years 1,102,940 1,086,178
-------------------------------- ------------- --------------
Between ten to twenty years 1,351,947 1,398,808
-------------------------------- ------------- --------------
Between twenty to thirty years 1,311,794 1,357,630
-------------------------------- ------------- --------------
Between thirty to fifty years 1,221,425 1,201,046
-------------------------------- ------------- --------------
Between fifty to seventy years 1,052,910 1,063,338
-------------------------------- ------------- --------------
More than seventy years 1,029,272 1,075,017
-------------------------------- ------------- --------------
------------ -------------
-------------------------------- ------------- --------------
8,109,832 8,086,075
-------------------------------- ------------- --------------
======= ========
-------------------------------- ------------- --------------
The above operating leases (Group as a lessee) mainly consist of
terminal operating leases arising out of concession arrangements
which are long term in nature. In addition, this also includes
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 prevailing market rates.
Operating lease commitments - Group as a lessor
Future minimum rentals receivable under non-cancellable
operating leases as at 31 December are as follows:
2012 2011
--------------------------- ----------- -----------
USD'000 USD'000
--------------------------- ----------- -----------
Within one year 21,646 22,691
--------------------------- ----------- -----------
Between one to five years 84,718 75,966
--------------------------- ----------- -----------
More than five years 25,640 25,887
--------------------------- ----------- -----------
---------- ----------
--------------------------- ----------- -----------
132,004 124,544
--------------------------- ----------- -----------
====== ======
--------------------------- ----------- -----------
Operating lease commitments - Group as a lessor (continued)
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 prevailing market
rates.
32 Capital commitments
2012 2011
------------------------------------------ ---------- --------
USD'000 USD'000
------------------------------------------ ---------- --------
Estimated capital expenditure contracted
for as at 31 December 1,178,529 538,383
------------------------------------------ ---------- --------
====== ======
------------------------------------------ ---------- --------
33 Contingencies
(a) The Group has contingent liabilities amounting to USD 15,538
thousand (2011: USD 99,491 thousand) in respect of payment
guarantees, USD 152,556 thousand (2011: USD 82,117 thousand) in
respect of performance guarantees and USD 853 thousand (2011: 195
thousand) in respect of letters of credit issued by the Group's
bankers. The bank guarantees and letters of credit are arising in
the ordinary course of business from which it is anticipated that
no material liabilities will arise.
(b) The Group has contingent liabilities in respect of
guarantees issued on behalf of equity-accounted investees (refer to
note 27).
(c) 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 ("GMB") 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.
(d) Chennai Port Trust ("CPT") had raised a demand for an amount
of USD 21,773 thousand (2011: USD 22,548 thousand) from Chennai
Container Terminal Limited ("CCTL"), a subsidiary of the Company,
on the basis that CCTL had failed to fulfil its obligations in
respect of non-transhipment containers for a period of four
consecutive years from 1 December 2003. CCTL had subsequently paid
USD 11,633 thousand (2011: USD 12,047 thousand) under dispute in
2008. CCTL had initiated arbitration proceedings against CPT in
this regard. The arbitral tribunal passed its award on November 26,
2012 ruling in favour of CCTL. As per the local legislation, CPT
can make an application for setting aside the award within a period
of 90 days from the date of award. No such application for setting
aside the arbitration has been made by CPT as at the reporting
date.
34 Significant group entities
Please refer to DP World website for Note 34, the list of
significant group entities, in full
35 Subsequent events
On 7 March 2013, the Group entered into a strategic partnership
with Goodman Hong Kong Logistics Fund, monetising 75% of its
interests in CSX World Terminals Hong Kong Limited (CT3), which
operates berth 3 of the Kwai Chung Container Terminal ('CT3') and
ATL Logistics Centre Hong Kong Limited (ATL), a logistics centre
located alongside CT3 for a total cash consideration of USD 463,000
thousand. As part of the strategic partnership, the Group will
continue to manage the port operations. Completion, subject to
regulatory approvals, is expected to be towards the end of the
first half of 2013.
On the same day, the Group divested all of its 55.16% interest
in Asia Container Terminals Holdings Limited, the holding company
of the entity that owns and operates Asia Container Terminal 8 West
(CT8), for a cash consideration of USD 279,000 thousand, to
Hutchison Port Holdings Trust (HPH Trust).
The total consideration to be received by the Group for the two
transactions is USD 742,000 thousand including the repayment of
certain shareholder loans. The proceeds will go towards maintaining
a strong capital position. The net financial impact will be
computed and disclosed in the consolidated financial statements for
the six months ended 30 June 2013, after taking into account the
impact of recycling of the foreign currency translation reserve and
other costs related to the transaction.
- END -
[1] Before separately disclosed items primarily excludes
non-recurring items. Further details can be found in Note 11 of the
audited accounts.
[2] Gross throughput is 100% of the throughput from all
terminals we operate regardless of % ownership.
[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 before separately disclosed items
including share of profit from equity-accounted investees.
[5] Before separately disclosed items.
[6] Profit for the year attributable to owners of the Company
after separately disclosed items.
[7] Return on capital employed is EBIT divided by total assets
less current liabilities and includes goodwill.
[8] Full details available on page 15 onwards
[9] Like for like growth at constant currency, is without the
addition of (a) new capacity at Paramaribo (Suriname) (b) divested
equity-accounted investees Tilbury (UK), P&O Trans Australia
(POTA), Aden (Yemen), Adelaide (Australia), Vostochny (Russia) and
DMS (P&O Maritime) (c) the deconsolidation of our five
Australian terminals (d) and the impact of exchange rates as our
financial results are translated into US dollars for reporting
purposes.
[10] Like for like growth at constant currency normalises for
the divestments or monetisation of Tilbury (UK), Aden
(Yemen),Vostochny (Russia) and the translation impact of exchange
rates.
[11] Like for like growth at constant currency normalises for
the translation impact of exchange rates.
[12] Underlying change shows what the % year over year change
would have been had the five terminals in Australia continued to be
consolidated in DP World's accounts from 1 January 2012 to 11 March
2012 and allows a better comparison with the prior period.
[13] Like for like growth at constant currency normalizes for
the divestments or monetisation of Australia, P&O Trans
Australia, Adelaide (Australia), DMS (P&O Maritime, Australia),
new capacity at Paramaribo (Suriname) and the translation impact of
exchange rates.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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