TIDMDPW
RNS Number : 6937M
DP World Limited
29 August 2013
DP WORLD LIMITED ANNOUNCES 26% INCREASE IN LIKE-FOR-LIKE
PROFIT
For the six months ended 30 June 2013
Results before separately disclosed 2013 2012 % change like for
items([1]) unless otherwise stated H1 H1([2]) like %
change([3])
USD million
Consolidated throughput ([4]) (TEU
'000) 12,807 13,586 (5.7%) (3.9%)
Revenue 1,509 1,529 (1.3%) 2.4%
Share of profit from equity-accounted
investees 49 68 (28.0%) 10.2%
Adjusted EBITDA([5]) 689 670 2.8% 9.5%
Adjusted EBITDA margin 45.6% 43.8% 47.1%([6])
Profit for the period 295 278 6.3% 21.9%
Profit for the period attributable
to owners of the Company 264 242 9.1% 26.0%
Profit for the period attributable
to owners of the Company after separately
disclosed items 398 242 64.8% -
Earnings per share attributable
to owners of the Company (US cents) 31.8 29.1 9.1% 26.0%
-------------------------------------------- ------- --------- --------- -------------
Ø Revenue of $1,509 million
-- Like-for-like revenue increased 2.4% driven by a 6.2%
increase in container revenue per TEU
-- Like-for-like non-container revenue increased 3.4%
Ø Adjusted EBITDA of $689 million; adjusted EBITDA margin of
45.6%
-- A focus on higher margin business coupled with continued cost
control improved adjusted EBITDA margin
Ø Profit for the period attributable to owners of the Company of
$264 million
-- Strong adjusted EBITDA growth resulted in a 26% increase in
like-for-like profit attributable to owners of the Company before
separately disclosed items
Ø Active management of portfolio to recycle capital into faster
growing markets
-- Realised $158 million profit from monetisation of assets
during the year which helped drive profit attributable to owners of
the Company after separately disclosed items of $398 million
Ø Strong cash generation and balance sheet remains robust
-- Net cash from operating activities increased to $548
million
-- Leverage (Net Debt to adjusted annualised EBITDA) reduced to
1.7 times
Ø Continued investment in quality long-term assets to drive
long-term profitable growth
-- $544 million invested across the portfolio in 1H 2013
-- Jebel Ali (UAE) added 1 million TEU capacity in Q2, Embraport
(Brazil) and London Gateway (UK) remain on track to open later this
year as scheduled
DP World Chairman, Sultan Ahmed Bin Sulayem commented:-
"DP World is pleased to announce another strong set of first
half results in spite of challenging market conditions. We are on
track with our substantial investment plan and on schedule to
deliver an additional 10 million TEU capacity over the next two
years. Our portfolio is well positioned to capitalise on the
significant medium to long-term growth potential of this industry
due to our focus on the faster growing emerging markets and stable
origin and destination cargo"
Group Chief Executive Mohammed Sharaf commented:-
"Despite tough market conditions, we have reported an excellent
set of financial results for the first six months of 2013. We
believe 9.5% like-for-like EBITDA growth, 26% like-for-like EPS
growth and a 47.1% like-for-like adjusted EBITDA margin is pleasing
given some of the headwinds that we have faced.
"We continue to actively manage our portfolio, having monetised
assets in Hong Kong this year, with an expectation to recycle this
cash into projects that will deliver a higher return on our
capital. Our substantial investment programme remains unchanged and
on schedule as we expect to add 10 million TEU of capacity over the
next two years. Crucially our balance sheet remains strong, which
gives us the ability to invest in the future growth of our current
portfolio, and the flexibility to make new investments should the
right opportunities arise as well as delivering enhanced returns to
shareholders over the medium term."
"The outlook remains uncertain and market conditions in some
regions are undoubtedly challenging. We continue to focus on
delivering efficiencies, containing costs and handling higher
margin containers to drive profitability and, in light of improving
momentum seen through the first half, remain confident of meeting
full year expectations. Our business is well positioned for medium
to long-term growth and we are adapting to the evolving needs of
our customers. The first half financial performance is a strong
indicator of the resilience of our portfolio and we believe we are
well positioned to continue to outperform the market in the medium
term."
The Chief Executive's Review and Operating and Financial Review
follow from page 4.
Investor Enquiries
Redwan Ahmed
DP World Limited
Mobile: +971505541557
Direct: +97148080842
redwan.ahmed@dpworld.com
Jasmine Lindsay
DP World Limited
Mobile:+971504220405
Direct: +97148080812
jasmine.lindsay@dpworld.com
Investor Presentation & Conference Call - 12noon UAE / 0900
UK
A presentation of theresults will take place today in Dubai at
12 noon with dial in details for those unable to attend in person.
The presentation accompanying the conference call will be available
on DP World's website within the investor centre at www.dpworld.com
from 0900 UAE time this morning. Adial in replay will be available
later in the day.
An additional conference call will be held at 1600 Dubai time
(1300 London, 0800 New York).
Forward-Looking Statements
This document contains certain "forward-looking" statements
reflecting, among other things, current views on our markets,
activities and prospects. By their nature, forward-looking
statements involve risk and uncertainty because they relate to
future events and circumstances that may or may not occur and which
may be beyond DP World's ability to control or predict (such as
changing political, economic or market circumstances). Actual
outcomes and results may differ materially from any outcomes or
results expressed or implied by such forward-looking statements.
Any forward-looking statements made by or on behalf of DP World
speak only as of the date they are made and no representation or
warranty is given in relation to them, including as to their
completeness or accuracy or the basis on which they were prepared.
Except to the extent required by law, DP World does not undertake
to update or revise forward-looking statements to reflect any
changes in DP World's expectations with regard thereto or any
changes in information, events, conditions or circumstances on
which any such statement is based.
Chief Executive's Review
We believe our strategy of operating a diversified portfolio
that has bias towards faster growing markets and a focus on origin
and destination cargo will continue to deliver superior earnings
growth and enhance shareholder value, and our first half results
reinforce this view. Despite tougher market conditions our business
has remained resilient and we have been able to deliver strong
like-for-like EBITDA, margin and EPS growth.
The macroeconomic environment proved quite challenging in the
first half of 2013. The slowdown in some of the emerging market
economies has been well documented; particularly China and India,
and this has had some impact on our Asia Pacific and India
business. Furthermore, local currencies fell against the US dollar,
which adversely impacted profits when translated into US
dollars.
Like-for-like gross volumes declined by 2.1% in the first half
of the year due to a combination of softer market conditions and
our strategy of targeting higher margin throughput. We believe this
strategy is appropriate in the short term given the capacity
constraints that we are facing at some of our ports.
Despite the economic headwinds, we have grown our like-for-like
revenue by 2.4%; like-for-like EBITDA by an impressive 9.5%; our
like-for-like EPS by a significant 26% and our like-for-like
adjusted EBITDA margin has expanded by 310 basis points to 47.1% in
the first half. This improvement in profitability is a reflection
of our strategy which sees us focus on more profitable origin and
destination cargo, meeting our customers' needs for the right
capacity in the right locations and delivering a world class
service to our customers to ensure we are the port operator of
choice around the world.
We remain committed to investing in both emerging and developed
markets to ensure our ports are well placed to capture current and
future trade flows. $544 million has been invested this year and we
remain on track with our $3.7 billion capex programme. 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 over 100 million TEU of capacity, retaining our 10%
market share and our 75% focus on emerging markets.
During the year we monetised our assets in Hong Kong and we aim
to recycle this cash into projects that will deliver a higher
return on our capital. We have a strong balance sheet which
provides us with the flexibility to support growth in our existing
business, and expand capacity in line with market demand. Moreover,
we have the financial resources to add to our portfolio should
favourable assets at attractive prices become available.
The operating environment remains challenging but the strong
momentum of the second quarter gives us confidence for the rest of
the year. Historically our second half has been stronger than the
first and we expect volumes to show improvement in the second half
of the year. The robust financial performance of the first six
months is reassuring and we are confident of meeting full-year
market expectations.
Operating and Financial Review
Faced with difficult market conditions, we have focused our
efforts this year on cost efficiencies and higher margin cargo, and
consequently we are able to report strong like-for-like adjusted
EBITDA growth of 9.5%; like-for-like adjusted EBITDA margin of
47.1% and like-for-like EPS growth of 26%.
We have seen some adverse impact on our operations in Asia
Pacific and India region. However, a robust performance in the
Middle-East combined with a strong first half from the Australia
and Americas region have allowed us to grow our revenues despite
softer volumes.
Revenue for the first six months of the year was $1,509 million,
marginally below the same period in the prior year. However, on a
like-for-like basis, revenue grew by 2.4% in spite of a volume
decline of 3.9%. This was due to a 6.2% increase in like-for-like
container revenue per TEU and non-container revenue growth of
3.4%.
Our share of profit of equity-accounted investees was lower than
the previous period at $68 million due to the monetisation of
assets in Hong Kong and Russia. On a like-for-like basis profit of
equity-accounted investees rose by 10% following a strong
performance from the America and Australia region.
Adjusted EBITDA was $689 million, 9.5% ahead of the same period
last year on a like-for-like basis with adjusted EBITDA margin well
ahead of thecomparative period at 45.6%.
Profit attributable to owners of the Company, before separately
disclosed items was $294 million, 26.0% ahead year-on-year on a
like-for-like basis.
During the first six months of the year we invested $544 million
in our portfolio. This investment was focused across our Africa,
Middle East and Europe terminals including Jebel Ali (UAE) and
London Gateway (UK). We opened one million TEU of new capacity at
Jebel Ali (UAE) in the second quarter and we remain on schedule
with London Gateway (UK). Our capex guidance of $3.7 billion across
the years 2012 to 2014 inclusive remains unchanged.
Middle East, Europe and Africa
The Middle East, Europe and Africa region delivered a strong
performance with adjusted EBITDA improving by 8%. Adjusted EBITDA
margin expanded to above 50% as our cargo mix favoured higher
margin origin & destination (O&D) and non-container
traffic, particularly in the UAE. The resilience in our Middle East
and Africa portfolio continues to mitigate the weaker Europe
market.
Results before separately disclosed 2013 H1 2012 H1 % change like for
items like %
change
USD million
Consolidated throughput (TEU
'000) 9,151 9,578 (4.5%) (2.6%)
Revenue 1,025 1,030 (0.5%) 3.9%
Share of profit from equity-accounted
investees 0.3 8.2 (96.6%) 142.0%
Adjusted EBITDA 516 477 8.1% 11.7%
Adjusted EBITDA margin 50.3% 46.3% - 51.5%([7])
--------------------------------------- -------- -------- --------- -----------
Revenue of $1,025 million is broadly flat year-on-year despite
softer volumes as container revenue per TEU increased 6.3%.
Our share of profit from equity-accounted investees declined to
$0.3 million due to the divestment of our 25% shareholding in
Vostochnaya Stevedoring Company in October 2012.
Adjusted EBITDA was $516 million, 8% ahead of the same period
last year due to good cost management and higher margin cargo which
helped drive adjusted EBITDA margin to 50.3%.
Like-for-like revenue growth at constant currency was 4% ahead
of the prior year and adjusted
EBITDA improved by 12%.
The UAE delivered another solid performance growing container
revenue by 8.5% and non-container revenue by 5% as the local
economy remained relatively robust. Growth continued to be driven
by tourism and logistics, while a recovery in the real estate
sector has benefited non-container volumes.
Investment in our terminals in this region in the first six
months of the year was $497 million. This investment was focused
across our Africa, Middle East and Europe terminals including Jebel
Ali (UAE) and at London Gateway (UK). One million TEU capacity was
added at Jebel Ali (UAE) in the second quarter and London Gateway
(UK) is on track to deliver its planned new capacity on
schedule.
Asia Pacific and Indian Subcontinent
The Asia Pacific and Indian Subcontinent region reported softer
revenue due to a combination of challenging market conditions; a
strategic focus on higher margin containers and unfavourable
currency movements. Adjusted EBITDA fell to $122 million but margin
erosion was limited due to the focus on more profitable cargo and
cost efficiencies.
Results before separately disclosed 2013 H1 2012 H1 % change like for
items like %
change
USD million
Consolidated throughput (TEU
'000) 2,469 2,823 (12.6%) (9.8%)
Revenue 192 233 (17.4%) (12.9%)
Share of profit from equity-accounted
investees 53 62 (14.9%) (7.3%)
Adjusted EBITDA 122 159 (23.6%) (19.7%)
Adjusted EBITDA margin 63.3% 68.4% - 61.4%([8])
--------------------------------------- -------- -------- --------- -----------
Revenue was $192 million, 17% lower than the prior period due to
softer container throughput and the translation impact from
unfavorable currency movements.
Our share of profit of equity-accounted investees decreased 15%
to $53 million, mainly due to the divestment in Hong Kong and
cessation of a tax holiday in Qingdao (China).
Adjusted EBITDA of $122 million was 24% lower than the same
period last year, reflecting the reduction in our revenue. EBITDA
margin of 63.3% remained relatively resilient due to continued
focus on cost reduction and higher margin traffic.
Excluding the monetisation of our Hong Kong assets and
unfavorable currency movements, like-for-like total revenue growth
at constant currency was 13% lower with the prior year.
Australia and Americas
Our terminals in the Australia and Americas region delivered a
strong performance with double-digit revenue growth in the first
six months of 2013.
Reported results before separately 2013 H1 2012 H1 % change like for
disclosed items like %
change
USD million
Consolidated throughput (TEU
'000) 1,187 1,185 0.2% 0.2%
Revenue 292 266 9.9% 10.2%
Share of profit from equity-accounted
investees (4.0) (2.2) (80.8%) 104.2%
Adjusted EBITDA 100 77 29.8% 44.3%
Adjusted EBITDA margin 34.2% 28.9% - 35.3%([9])
--------------------------------------- -------- -------- --------- -----------
Revenue grew by 10% to $292 million, in line with the increase
in revenue per TEU. The loss on equity-accounted investees
increased to $4 million due to the divestment of Adelaide. On a
like-for-like basis JV income delivered a strong performance.
Adjusted EBITDA was $100 million, up by 30% on the prior period
due to cost efficiencies and strong growth in higher margin
ancillary revenues.
Like-for-like total revenue growth at constant currency was 10%
ahead of the prior year whilst adjusted EBITDA increased 44%.
Net finance costs
Net finance cost for the six months was lower than the prior
period at $154.6 million (2012: $162.9 million) due to lower
interest expense as a result of early repayment of the $3 billion
revolver in April 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 the taxation
laws and regulations of the countries in which they operate. For
the first six months of the year, DP World's income tax expense
before separately disclosed items was $42 million (2012: $27
million).
Profit attributable to non-controlling interests (minority
interest)
Profit attributable to non-controlling interests (minority
interest) before separately disclosed items was $32 million, (2012:
$36 million) lower than the same period in the prior year due to a
generally weaker performance in Europe. Profit attributable to
non-controlling interests after separately disclosed items was $48
million, which includes $16 million from the gain on disposal in
Hong Kong.
The key terminals where we have non-controlling interests are
Doraleh (Djibouti) and Southampton (UK).
Separately disclosed items
DP World reported separately disclosed items of $151 million,
relating mostly to the $158 million profit on sale of
businesses.
Earnings per Share
As at 30 June 2013, earnings per share (EPS) after separately
disclosed items was 48 US cents. This is significantly higher than
the earnings per share reported for the comparable period, due to
the $158 million of separately disclosed profit following the
monetization in Hong Kong. EPS before separately disclosed items
was 32 US cents, 26% like-for-like growth on prior year.
Net Debt
As at 30 June 2013 our net debt was $2.4 billion. Gross debt was
broadly flat year-on-year at $4.8 billion. Bank balances and cash
increased to $2.5 billion, mainly due to the divestment in Hong
Kong.
Long-term corporate bonds totaled $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 $1.6 billion of
debt at the subsidiary level.
Leverage (net debt to adjusted annualised EBITDA) decreased to
1.7 times.
Dividends
It is our current dividend policy that not less than 20% of our
profit for the year attributable to owners of the Company (after
separately disclosed items) will be distributed as dividends.
Dividends in respect of the full year 2013 will be proposed at
the time of the preliminary results in March 2014.
Mohammed Sharaf Yuvraj Narayan
Group Chief Executive Officer Group Chief Financial Officer
DP World Limited and its subsidiaries
Condensed consolidated income statement
For the six months ended 30 June 2013
Period ended 30 June 2013 Period ended 30 June 2012 (Restated
*)
Before Separately Before Separately
separately disclosed Total separately disclosed Total
disclosed items items disclosed items
items
(Note 5) (Note 5)
Note USD'000 USD'000 USD'000 USD'000 USD'000 USD'000
(Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited)
Revenue 1,509,409 - 1,509,409 1,528,627 - 1,528,627
Cost of sales (933,855) - (933,855) (985,336) - (985,336)
------------ ------ ------------ ----------- --------- -----------
Gross profit 575,554 - 575,554 543,291 - 543,291
General and
administrative
expenses (142,366) (2,280) (144,646) (151,282) - (151,282)
Other income 9,610 - 9,610 8,281 - 8,281
Share of profit
of
equity-accounted
investees (net
of tax) 7 48,891 - 48,891 67,866 - 67,866
Profit on sale
and termination
of business (net
of tax) - 158,188 158,188 - - -
----------- ----------- ----------- ---------- ---------- ----------
Results from
operating
activities 491,689 155,908 647,597 468,156 - 468,156
----------- ----------- ----------- ---------- --------- ----------
Finance income 36,868 - 36,868 46,177 - 46,177
Finance costs (191,432) - (191,432) (209,093) - (209,093)
------------ ------ ------------ ---------- ------ ----------
Net finance costs (154,564) - (154,564) (162,916) - (162,916)
------------ ------ ------------ ---------- --------- ----------
Profit before tax 337,125 155,908 493,033 305,240 - 305,240
Income tax 8 (41,759) (4,900) (46,659) (27,365) - (27,365)
----------- ----------- ----------- ---------- --------- ---------
Profit for the
period 295,366 151,008 446,374 277,875 - 277,875
----------- ----------- ----------- ---------- --------- ---------
Profit
attributable to:
Owners of the
Company 263,729 134,358 398,087 241,613 - 241,613
Non-controlling
interests 31,637 16,650 48,287 36,262 - 36,262
----------- ---------- ----------- ---------- --------- ----------
Profit for the
period 295,366 151,008 446,374 277,875 - 277,875
====== ====== ====== ====== ===== ======
Earnings per
share
Basic and diluted earnings per share - US
cents 47.96 29.11
==== ====
* Refer to note 3.
The accompanying notes 1 to 19 form an integral part of these
condensed consolidated interim financial statements.
DP World Limited and its subsidiaries
Condensed consolidated statement of comprehensive income
For the six months ended 30 June 2013
30 June 2013 30 June 2012
USD'000 USD'000
(Unaudited) (Unaudited
and restated
*)
Profit for the period 446,374 277,875
----------- -----------
Other comprehensive income
Items that are or may be reclassified
subsequently to
consolidated income statement:
Foreign exchange translation differences
for foreign
operations ** (410,002) (131,310)
Foreign exchange recycled to the condensed
consolidated
income statement on sale of businesses (4,316) -
Effective portion of net changes in
fair value of cash flow
hedges 58,205 2,635
Net change in fair value of available
for sale financial assets (2,137) 2,062
Net change in fair value of cash flow
hedges recycled to
condensed consolidated income statement - 367
Share in other comprehensive income/
(loss) of equity-
accounted investees 6,826 (7,380)
Tax (charge)/ credit on fair value of
cash flow hedges (10,084) 4,400
Items that will never be reclassified
to consolidated income
statement:
Defined benefit plan actuarial gains 36,839 13,145
Tax on defined benefit plan actuarial
(losses)/ gains (1,037) 1,000
------------ -----------
Other comprehensive loss for the period,
net of income
tax (325,706) (115,081)
------------ -----------
Total comprehensive income attributable
to:
Owners of the Company 78,176 136,852
Non-controlling interests 42,492 25,942
----------- -----------
120,668 162,794
====== ======
* Refer to note 3.
** 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.
The accompanying notes 1 to 19 form an integral part of these
condensed consolidated interim financial statements.
DP World Limited and its subsidiaries
Condensed consolidated statement of financial position
As at 30 June 2013
30 June 2013 31 December 2012
Note USD'000 USD'000
(Unaudited) (Audited and restated*)
Assets
Non-current assets
Property, plant and equipment 9 5,626,888 5,413,262
Goodwill 10 1,463,303 1,588,918
Port concession rights 10 2,864,842 3,115,084
Investment in equity-accounted
investees 7 2,679,348 3,348,317
Deferred tax assets 94,309 105,753
Other investments 58,792 60,833
Accounts receivable and
prepayments 179,471 263,428
-------------- --------------
Total non-current assets 12,966,953 13,895,595
-------------- --------------
Current assets
Inventories 49,919 53,283
Accounts receivable and
prepayments 562,127 603,103
Bank balances and cash 11 2,468,137 1,881,928
------------- ------------
Total current assets 3,080,183 2,538,314
------------- --------------
Total assets 16,047,136 16,433,909
======== ========
* Refer to note 3.
DP World Limited and its subsidiaries
Condensed consolidated statement of financial position
(continued)
As at 30 June 2013
30 June 2013 31 December 2012
Note USD'000 USD'000
(Unaudited) (Audited and restated*)
Equity
Share capital 13 1,660,000 1,660,000
Share premium 2,472,655 2,472,655
Shareholders' reserve 2,000,000 2,000,000
Retained earnings 3,166,955 2,968,068
Hedging and other reserves (74,703) (122,229)
Actuarial reserve (342,769) (379,171)
Translation reserve (886,748) (482,909)
------------ ------------
Total equity attributable to
equity
holders of the Company 7,995,390 8,116,414
Non-controlling interests 472,157 663,993
------------- -------------
Total equity 8,467,547 8,780,407
------------- -------------
Liabilities
Non-current liabilities
Deferred tax liabilities 1,032,746 1,070,931
Employees' end of service benefits 59,935 55,747
Pension and post-employment
benefits 160,284 223,234
Interest bearing loans and
borrowings 15 4,270,839 4,049,621
Accounts payable and accruals 411,383 504,755
------------- -------------
Total non-current liabilities 5,935,187 5,904,288
------------- -------------
Current liabilities
Income tax liabilities 172,508 180,267
Bank overdrafts 11 1,665 195
Pension and post-employment
benefits 9,742 11,845
Interest bearing loans and
borrowings 15 575,246 702,835
Accounts payable and accruals 885,241 854,072
------------ -------------
Total current liabilities 1,644,402 1,749,214
------------ -------------
Total liabilities 7,579,589 7,653,502
-------------- --------------
Total equity and liabilities 16,047,136 16,433,909
======== ========
* Refer to note 3.
The accompanying notes 1 to 19 form an integral part of these
condensed consolidated interim financial statements. The condensed
consolidated financial statements were authorised for issue on 29
August 2013.
..................................................................
..................................................................
Mohammed Sharaf Yuvraj Narayan
Chief Executive Officer Chief Financial Officer
DP World Limited and its subsidiaries
Condensed consolidated statement of changes in equity
For the six months ended 30 June 2013
Attributable to equity holders of the Company
Hedging
Share Share Shareholders' Retained and other Actuarial Translation Non-controlling Total
capital premium reserve earnings reserves reserve reserve Total interests equity
USD'000 USD'000 USD'000 USD'000 USD'000 USD'000 USD'000 USD'000 USD'000 USD'000
(Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited)
Balance as at 1
January
2013 (Restated
-refer
to
note 3) 1,660,000 2,472,655 2,000,000 2,968,068 (122,229) (379,171) (482,909) 8,116,414 663,993 8,780,407
------------ ------------ ------------ ------------ ---------- ---------- --------- ------------ ---------- ------------
Total
comprehensive
income
for the period:
Profit for the
period - - - 398,087 - - - 398,087 48,287 446,374
Total other
comprehensive
income, net of
tax - - - - 47,526 36,402 (403,839) (319,911) (5,795) (325,706)
---------- ---------- ---------- ---------- --------- -------- ---------- ---------- -------- ----------
Total
comprehensive
income
for the period - - - 398,087 47,526 36,402 (403,839) 78,176 42,492 120,668
---------- ---------- ---------- ---------- --------- -------- ---------- ---------- -------- ----------
Transactions with
owners,
recognised
directly in
equity
Dividends paid
(refer
to note 14) - - - (199,200) - - - (199,200) - (199,200)
---------- ---------- ---------- ----------- -------- ---------- -------- ---------- --------- ----------
Total
transactions
with
owners - - - (199,200) - - - (199,200) - (199,200)
---------- ---------- ---------- ------------ -------- ---------- -------- ---------- --------- ----------
Transactions with
non-controlling
interests,
recognised
directly in
equity
Dividends paid - - - - - - - - (18,253) (18,253)
Derecognition of
non-controlling
interests on
loss of
control - - - - - - - - (216,075) (216,075)
---------- ---------- ---------- ---------- --------- ---------- ---------- ---------- ------------ -----------
Total
transactions
with
non-controlling
interests - - - - - - - - (234,328) (234,328)
------------ ------------ ------------ ------------ --------- ---------- ---------- ------------ ------------ --------------
Balance as at 30
June
2013 1,660,000 2,472,655 2,000,000 3,166,955 (74,703) (342,769) (886,748) 7,995,390 472,157 8,467,547
======= ======= ======= ======= ===== ====== ====== ======= ====== =======
The accompanying notes 1 to 19 form an integral part of these
condensed consolidated interim financial statements.
DP World Limited and its subsidiaries
Condensed consolidated statement of changes in equity
(continued)
For the six months ended 30 June 2013
Attributable to equity holders of the Company
Hedging
Share Share Shareholders' Retained and other Actuarial Translation Non-controlling Total
capital premium reserve earnings reserves reserve reserve Total interests equity
USD'000 USD'000 USD'000 USD'000 USD'000 USD'000 USD'000 USD'000 USD'000 USD'000
(Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited)
Balance as at 1
January
2012 (Audited) 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
Impact of IAS 19
amendment
(refer to note
3) - - - 41,639 - - - 41,639 - 41,639
------------ ------------ ------------ ------------ --------- ---------- --------- ------------ ---------- ------------
Balance as at 1
January
2012
(Restated -refer
to note
3) 1,660,000 2,472,655 2,000,000 2,408,803 (104,408) (352,402) (586,555) 7,498,093 765,013 8,263,106
======= ======= ======= ======= ====== ====== ====== ======= ====== =======
Total
comprehensive
income
for the period:
Profit for the
period
(Restated -refer
to note
3) - - - 241,613 - - - 241,613 36,262 277,875
Total other
comprehensive
income, net of
tax
(Restated -refer
to note
3) - - - - 205 16,345 (121,311) (104,761) (10,320) (115,081)
---------- ---------- ---------- ---------- --------- -------- ---------- ---------- ---------- ----------
Total
comprehensive
income
for the period - - - 241,613 205 16,345 (121,311) 136,852 25,942 162,794
---------- ---------- ---------- ---------- --------- -------- ---------- ---------- --------- ----------
Transactions with
owners,
recognised
directly in
equity
Dividends paid
(refer
to note 14) - - - (199,200) - - - (199,200) - (199,200)
---------- ---------- ---------- ---------- -------- ---------- -------- ---------- --------- ----------
Total
transactions
with
owners - - - (199,200) - - - (199,200) - (199,200)
---------- ---------- ---------- ---------- -------- ---------- -------- ---------- --------- ----------
Transactions with
non-controlling
interests,
recognised
directly in
equity
Dividends paid - - - - - - - - (41,665) (41,665)
---------- ---------- ---------- ---------- --------- ---------- ---------- ---------- -------- -----------
Total
transactions
with
non-controlling
interests - - - - - - - - (41,665) (41,665)
------------ ------------ ------------ ------------ --------- ---------- ---------- ------------ --------- -------------
Balance as at 30
June
2012 1,660,000 2,472,655 2,000,000 2,451,216 (104,203) (336,057) (707,866) 7,435,745 749,290 8,185,035
======= ======= ======= ======= ====== ======= ====== ======= ====== =======
The accompanying notes 1 to 19 form an integral part of these
condensed consolidated interim financial statements.
DP World Limited and its subsidiaries
Condensed consolidated statement of cash flows
For the six months ended 30 June 2013
30 June 2013 30 June 2012
Note USD'000 USD'000
(Unaudited
(Unaudited) and restated*)
Cash flows from operating activities
Profit for the period 446,374 277,875
Adjustments for:
Depreciation and amortisation 197,285 201,895
Share of profit from equity-accounted
investees, net of tax 7 (48,891) (67,866)
Finance costs 191,432 209,093
Income tax expense 46,659 27,365
(Gain)/ loss on disposal of property,
plant and equipment 9 (677) 939
Profit on sale and termination of
business 5 (158,188) -
Finance income (36,868) (46,177)
----------- -----------
Gross cash flow from operations 637,126 603,124
Change in inventories 1,797 (1,303)
Change in accounts receivable and
prepayments 22,771 (33,224)
Change in accounts payable and accruals (61,078) (12,693)
Changes in provisions, pension and
post-employment
benefits (2,870) (1,368)
----------- -----------
Cash generated from operating activities 597,746 554,536
Income taxes paid (49,954) (36,637)
---------- ----------
Net cash from operating activities 547,792 517,899
---------- ----------
Cash flows from investing activities
Additions to property, plant and equipment 9 (525,893) (252,837)
Additions to port concession rights 10 (17,760) (7,568)
Proceeds from disposal of property,
plant and equipment 2,114 5,409
Net proceeds from monetisation of
investment in
subsidiaries and equity accounted
investees 658,685 -
Proceeds from disposal of investment
in equity-accounted
investee 16,140 62,712
Dividends received from equity-accounted
investees 45,163 64,992
Additional investment in equity-accounted
investees (7,615) (6,695)
Net loan repaid by/ (given to) equity-accounted
investees 60,617 (2,500)
Interest received 20,182 47,633
----------- ----------
Net cash from/ (used in) investing
activities 251,633 (88,854)
----------- ----------
* Refer to note 3.
DP World Limited and its subsidiaries
Condensed consolidated statement of cash flows (continued)
for the six months ended 30 June 2013
30 June 2013 30 June 2012
USD'000 USD'000
(Unaudited
Note (Unaudited) and restated*)
Cash flows from financing activities
Repayment of interest bearing loans
and borrowings (91,955) (3,099,291)
Drawdown of interest bearing loans
and borrowings 221,960 45,309
Dividend paid to the owners of the
Company 14 (199,200) (199,200)
Dividends paid to non-controlling
interests (18,253) (41,665)
Interest paid (115,399) (131,457)
------------ --------------
Net cash used in financing activities (202,847) (3,426,304)
------------ --------------
Net increase/ (decrease) in cash and
cash equivalents 596,578 (2,997,259)
Cash and cash equivalents as at 1
January 1,881,733 4,158,347
Effect of exchange rate fluctuations
on cash held (11,839) (426)
-------------- -------------
Cash and cash equivalents as at 30
June 2,466,472 1,160,662
======= =======
Cash and cash equivalents comprise
the following:
Bank balances and cash 2,468,137 1,161,348
Bank overdrafts (1,665) (686)
------------- -------------
Cash and cash equivalents 2,466,472 1,160,662
------------- -------------
* Refer to note 3.
The accompanying notes 1 to 19 form an integral part of these
condensed consolidated interim financial statements.
DP World Limited and its subsidiaries
Notes to the condensed consolidated interim financial
statements
1 Legal status andprincipal activities
DP World Limited ("the Company") was incorporated on 9 August
2006 as a Company Limited by Shares with the Registrar of Companies
of the Dubai International Financial Centre ("DIFC") under the
Companies Law, DIFC Law No. 3 of 2006. The condensed consolidated
interim financial statements of the Company for the period ended 30
June 2013 comprise the Company and its subsidiaries (collectively
referred to as "the Group") and the Group's interest in
equity-accounted investees. The Group is engaged in the business of
international marine terminal operations and development, logistics
and related services.
Port & Free Zone World FZE ("the Parent Company"), which
originally held 100% of the Company's issued and outstanding share
capital, made an initial public offer of 19.55% of its share
capital to the public and as a result the Company was listed on the
Nasdaq Dubai with effect from 26 November 2007. The Company was
further admitted to trade on the London Stock Exchange with effect
from 1 June 2011.
Port & Free Zone World FZE is a wholly owned subsidiary of
Dubai World Corporation ("the Ultimate Parent Company").
The Company's registered office address is P.O. Box 17000,
Dubai, United Arab Emirates.
2 Basis of preparation
Statement of compliance
The condensed consolidated interim financial statements have
been prepared in accordance with International Accounting Standard
34, Interim Financial Reporting. These condensed consolidated
interim financial statements do not include all of the information
required for full annual consolidated financial statements prepared
in accordance with International Financial Reporting Standards.
Selected explanatory notes are included to explain events and
transactions that are significant to an understanding of the
changes in financial position and performance of the Group since
the last annual consolidated financial statements as at and for the
year ended 31 December 2012.
The condensed consolidated interim financial statements were
approved by the Board of Directors on 29 August 2013.
3 Significant accounting policies
Except as described below, the accounting policies applied by
the Group in these condensed consolidated interim financial
statements are the same as those applied by the Group in its
consolidated financial statements as at and for the year ended 31
December 2012.
-- IFRS 10-Consolidated Financial Statements (2011) - IFRS 10
introduces a new control model that is applicable to all investees,
by focusing on whether the Group has power over an investee,
exposure or rights to variable returns from its involvement with
the investee and ability to use its power to affect those returns.
In accordance with the transitional provisions of IFRS 10, the
Group reassessed the control conclusion for its investees at 1
January 2013 and concluded that this standard has no impact on the
Group's financial position and performance.
DP World Limited and its subsidiaries
Notes to the condensed consolidated interim financial
statements
3 Significant accounting policies (continued)
-- IFRS 11- Joint Arrangements (2011) - Under IFRS 11, the Group
classifies its interests in joint arrangements as either joint
operations or joint ventures depending on the Group's rights to the
assets and obligations for the liabilities of the arrangements.
IFRS 11 removes the option to account for jointly-controlled
entities (JCEs) using proportionate consolidation. Instead, JCEs
that meet the definition of a joint venture must be accounted for
using the equity method. When making this assessment, the Group
considers the structure of the arrangements, the legal form of any
separate vehicles, the contractual terms of the arrangements and
other facts and circumstances. The Group has been following the
equity method of accounting for all its jointly controlled entities
since inception. Accordingly, this standard has no impact on the
Group's financial position and performance.
-- IFRS 13- Fair Value Measurement - IFRS 13 establishes a
single framework for measuring fair value and making disclosures
about fair value measurements, when such measurements are required
or permitted by other IFRSs. IFRS 13 does not change when an entity
is required to use fair value, but rather provides guidance on how
to measure fair value under IFRS when fair value is required or
permitted. The standard has no impact on the Group's financial
position and performance. The Group has also included the
disclosures required by IAS 34 para 16A (J). Refer to note 12.
-- IAS 1- Presentation of Items of Other Comprehensive Income
('OCI') - Amendments to IAS 1- As a result of the amendments to IAS
1, the Group has modified the presentation of items of other
comprehensive income in its condensed consolidated statement of
profit or loss and other comprehensive income to present
separately, items that would be reclassified to profit or loss in
the future from those that would never be. Comparative information
has also been re-presented accordingly.
-- IAS 19 Revised (2011) - Employee Benefits - includes a number
of amendments to the accounting for defined benefit plans. The
following changes have had an impact on the Group:
- Expected returns on plan assets are no longer recognised in
profit or loss. Interest income is recognised in profit or loss,
calculated using the discount rate used to measure the defined
benefit obligation. The difference between the actual return on
plan assets and the interest income is recognised as a
remeasurement in other comprehensive income.
- Administration costs are recognised in profit or loss and no
longer being taken into account in measuring the defined benefit
obligation.
- Unvested past service costs can no longer be deferred and
recognised over the future vesting period. Instead, all past
service costs are recognised at the earlier of when the amendment
occurs and when the Group recognises related restructuring or
termination costs. (Until 2012, the Group's unvested past service
costs were recognised as an expense on a straight-line basis over
the average period until the benefits become vested).
Other amendments include new disclosures, such as, quantitative
sensitivity disclosures.
DP World Limited and its subsidiaries
Notes to the condensed consolidated interim financial
statements
3 Significant accounting policies (continued)
The effect of the adoption of IAS 19R is explained below:
As at 31 December As at 31 December
2012 2011
USD '000 USD '000
Impact on statement of financial position:
Decrease in pension and post-employment
benefits
-refer to note (a) below 50,562 41,639
Increase in actuarial reserve 19,131 -
Increase in retained earnings 31,431 41,639
For the year Six months
ending 31 December ending on 30
2012 June
2012
USD '000 USD '000
Impact on income statement:
Increase in cost of sales 512 258
Increase in general and administrative
expenses
-refer to note (b) below 2,559 1,396
Increase in finance costs - see note
(c) below 7,137 3,540
--------- -------
Total impact on income statement 10,208 5,194
===== ====
Impact on other comprehensive income 19,131 6,745
===== ====
(a) The transition to revised IAS 19 resulted in a reduction of
net defined benefit plan obligations due to the administration
costs being taken to the consolidated income statement each year
rather than being reserved as part of the discounted
obligation.
(b) Certain pension administration costs are directly recognised
in consolidated income statement as per revised IAS 19.
(c) The value of the gross scheme assets under the old and
revised IAS 19 is the same, but the impact of the interest on plan
assets is to move a portion of the movement in the period from
actuarial reserve to consolidated income statement.
The segment information has accordingly been adjusted based on
the above restatements (refer to note 6).
4 Accounting judgements and estimates
The preparation of the condensed consolidated interim financial
statement requires management to make judgements, estimates and
assumptions that affect the application of accounting policies and
the reported amounts of income, expenses, assets and liabilities
and the disclosure of contingent liabilities at the reporting date.
Actual results may differ from these estimates.
In preparing these condensed consolidated interim financial
statements, the significant judgements made by management in
applying the Group's accounting policies and the key sources of
estimation uncertainty were the same as those that applied to the
consolidated financial statements as at and for the year ended 31
December 2012.
5 Separately disclosed items
Six months ended Six months ended
30 June 2013 30 June 2012
USD '000 USD '000
(Unaudited) (Unaudited)
Restructuring costs (2,280) -
Profit on sale and termination of 158,188 -
business
Income tax expense (4,900) -
---------- --------
151,008 -
====== =====
Restructuring costsrelates to the restructuring of subsidiaries
in the 'Middle East, Europe and Africa' region and in the 'Asia
Pacific and Indian subcontinent' region (2012: Nil).
Profit on sale and termination of businesses represents:
-- USD 152,224 thousand profit on monetisation of investments in
the 'Asia Pacific and Indian subcontinent' region.
-- USD 5,964 thousand profit on monetisation of investments in
an equity-accounted investee in the 'Australia and Americas' region
(2012: Nil).
Income tax expense relates to the restructuring of subsidiaries
in the 'Asia Pacific and Indian subcontinent' region (2012:
Nil).
6 Segment information
The internal management reports which are prepared under IFRS
are reviewed by the Board of Directors ('Chief Operating Decision
Maker') based on the location of the Group's assets and
liabilities. The Group has identified the following geographic
areas as its basis of segmentation. The Group measures segment
performance based on the earnings before separately disclosed
items, interest, tax, depreciation and amortisation ("Adjusted
EBITDA").
-- Asia Pacific and Indian subcontinent
-- Australia and Americas
-- Middle East, Europe and Africa
Each of these operating segments has an individual appointed as
Segment Director responsible for these segments, who in turn
reports to the Chief Operating Decision Maker.
In addition to the above reportable segments, the Group also
reports unallocated head office costs, finance costs, finance
income and tax expense under head office segment.
Information regarding the results of each reportable segment is
included below.
The following table presents certain results, assets and
liabilities information regarding the Group's segments as at the
reporting date.
Asia Pacific Australia and Middle East, Europe
and Indian subcontinent Americas and Africa Head office Inter-segment Total
Six months ended Six months ended Six months ended Six months ended Six months ended Six months ended
30 June 30 June 30 June 30 June 30 June 30 June
2013 2012 2013 2012 2013 2012 2013 2012 2013 2012 2013 2012
USD'000 USD'000 USD'000 USD'000 USD'000 USD'000 USD'000 USD'000 USD'000 USD'000 USD'000 USD'000
(Unaudited (Unaudited (Unaudited (Unaudited (Unaudited (Unaudited
and- and- and- and- and- and-
(Unaudited) Restated*) (Unaudited) Restated*) (Unaudited) Restated*) (Unaudited) Restated*) (Unaudited) Restated*) (Unaudited) Restated*)
Revenue
from
operations 192,321 232,920 291,688 265,525 1,025,400 1,030,182 - - - - 1,509,409 1,528,627
====== ====== ====== ====== ======= ======= ===== ===== === === ======= =======
Segment
results
from
operations
** 230,081 114,058 71,533 37,206 399,455 362,653 (100,131) (73,126) - - 600,938 440,791
Finance
income - - - - - - 36,868 46,177 - - 36,868 46,177
Finance
cost - - - - - - (191,432) (209,093) - - (191,432) (209,093)
--------- --------- --------- --------- ---------- ---------- ---------- ---------- ----- ----- ----------- -----------
Profit/
(loss)
for
the period 230,081 114,058 71,533 37,206 399,455 362,653 (254,695) (236,042) - - 446,374 277,875
====== ====== ===== ===== ====== ====== ====== ====== === === ====== ======
* Refer to note 3.
** Segment results from operations comprise profit for the period before net finance cost.
Net finance cost and tax expense from various geographical
locations and head office have been grouped under head office.
6 Segment information (continued)
Asia Pacific Australia and Middle East, Europe
and Indian subcontinent Americas and Africa Head office Inter-segment Total
As at As at As at As at As at As at
30 June 31 December 30 June 31 December 30 June 31 December 30 June 31 December 30 June 31 December 30 June 31 December
2013 2012 2013 2012 2013 2012 2013 2012 2013 2012 2013 2012
USD'000 USD'000 USD'000 USD'000 USD'000 USD'000 USD'000 USD'000 USD'000 USD'000 USD'000 USD'000
(Audited (Audited (Audited (Audited (Audited (Audited
and and and and and and
(Unaudited) Restated*) (Unaudited) Restated*) (Unaudited) Restated*) (Unaudited) Restated*) (Unaudited) Restated*) (Unaudited) Restated*)
Segment
assets 4,407,998 4,993,196 1,757,868 1,804,715 9,009,370 9,448,179 8,709,314 8,862,301 (7,837,414) (8,674,482) 16,047,136 16,433,909
======= ======= ======= ======= ======= ======= ======= ======= ======= ======= ======== ========
Segment
liabilities 224,686 427,202 102,574 140,115 1,468,158 1,538,016 5,577,294 6,128,409 (998,377) (1,831,438) 6,374,335 6,402,304
Tax
liabilities
* - - - - - - 1,205,254 1,251,198 - - 1,205,254 1,251,198
---------- ----------- ----------- ----------- ------------ ------------ ------------- ------------- ----------- ------------ ------------ -------------
Total
liabilities 224,686 427,202 102,574 140,115 1,468,158 1,538,016 6,782,548 7,379,607 (998,377) (1,831,438) 7,579,589 7,653,502
====== ====== ====== ====== ======= ======= ======= ======= ====== ======== ======= =======
Asia Pacific Australia and Middle East, Europe
and Indian subcontinent Americas and Africa Head office Inter-segment Total
Six months ended Six months ended Six months ended Six months ended Six months ended Six months ended
30 June 30 June 30 June 30 June 30 June 30 June
2013 2012 2013 2012 2013 2012 2013 2012 2013 2012 2013 2012
USD'000 USD'000 USD'000 USD'000 USD'000 USD'000 USD'000 USD'000 USD'000 USD'000 USD'000 USD'000
(Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited)
Capital
expenditure 9,746 2,357 35,942 25,857 496,892 230,805 1,073 1,386 - - 543,653 260,405
==== ==== ===== ===== ====== ====== ==== ==== ==== ==== ====== ======
Depreciation 15,000 15,734 29,873 35,872 89,162 93,374 2,250 2,569 - - 136,285 147,549
===== ===== ===== ===== ===== ===== ==== ==== ==== ==== ===== =====
Amortisation/
impairment 27,816 29,517 5,991 3,639 27,193 21,190 - - - - 61,000 54,346
===== ===== ==== ==== ===== ===== ==== ==== ==== ==== ===== =====
Share of
profit/
(loss) of
equity
accounted
investees
before
separately
disclosed
items 52,656 61,862 (4,048) (2,239) 283 8,243 - - - - 48,891 67,866
===== ===== ==== ==== ==== ==== ===== ===== ==== ==== ===== =====
Tax expense
** - - - - - - 46,659 27,365 - - 46,659 27,365
===== ===== ===== ===== ==== ==== ===== ===== ==== ==== ===== =====
* Refer to note 3.
** Tax liabilities and tax expense from various geographical
locations and head office have been grouped under head office.
6 Segment information (continued)
Earnings before separately disclosed items, interest, tax,
depreciation and amortisation ("Adjusted EBITDA")
Asia Pacific Australia and Middle East, Europe
and Indian subcontinent Americas and Africa Head office Inter-segment Total
Six months ended Six months ended Six months ended Six months ended Six months ended Six months ended
30 June 30 June 30 June 30 June 30 June 30 June
2013 2012 2013 2012 2013 2012 2013 2012 2013 2012 2013 2012
USD'000 USD'000 USD'000 USD'000 USD'000 USD'000 USD'000 USD'000 USD'000 USD'000 USD'000 USD'000
(Unaudited (Unaudited (Unaudited (Unaudited (Unaudited (Unaudited
and and and and and and
(Unaudited) Restated*) (Unaudited) Restated*) (Unaudited) Restated*) (Unaudited) Restated*) (Unaudited) Restated*) (Unaudited) Restated*)
Revenue
before
separately
disclosed
items 192,321 232,920 291,688 265,525 1,025,400 1,030,182 - - - - 1,509,409 1,528,627
====== ====== ====== ====== ======= ======= ===== ===== ====== ====== ======= =======
Adjusted
EBITDA 121,773 159,309 99,613 76,717 515,810 477,217 (48,222) (43,192) - - 688,974 670,051
Finance
income - - - - - - 36,868 46,177 - - 36,868 46,177
Finance
costs - - - - - - (191,432) (209,093) - - (191,432) (209,093)
Tax expense - - - - - - (41,759) (27,365) - - (41,759) (27,365)
Depreciation
and
amortisation (42,816) (45,251) (35,864) (39,511) (116,355) (114,564) (2,250) (2,569) - - (197,285) (201,895)
--------- --------- --------- --------- ---------- ---------- -------- -------- --------- --------- ----------- -----------
Adjusted
net
profit/
(loss)
for
the period
before
separately
disclosed
items 78,957 114,058 63,749 37,206 399,455 362,653 (246,795) (236,042) - - 295,366 277,875
Adjusted
for
separately
disclosed
items 151,124 - 7,784 - - - (7,900) - - - 151,008 -
---------- ---------- --------- --------- ---------- ---------- --------- --------- ------- ------- ---------- ----------
Profit/
(loss)
for
the period 230,081 114,058 71,533 37,206 399,455 362,653 (254,695) (236,042) - - 446,374 277,875
====== ====== ===== ===== ====== ====== ====== ======= ==== ==== ====== ======
* Refer to note 3.
7 Investment in equity-accounted investees
Summary of financial information for equity-accounted investees,
not adjusted for the percentage ownership held by the Group:
Asia Pacific and Indian Middle East, Europe
sub-continent Australia and Americas and Africa Total
30 June 31 December 30 June 31 December 30 June 31 December 30 June 31 December
2013 2012 2013 2012 2013 2012 2013 2012
USD'000 USD'000 USD'000 USD'000 USD'000 USD'000 USD'000 USD'000
(Unaudited) (Audited) (Unaudited) (Audited) (Unaudited) (Audited) (Unaudited) (Audited)
Current
assets 559,266 515,254 354,902 373,871 341,070 324,725 1,255,238 1,213,850
Non-current
assets 7,033,457 8,068,891 2,880,593 2,861,185 2,405,381 2,389,594 12,319,431 13,319,670
------------- ------------- ------------- ------------- ------------- ------------- --------------- ---------------
Total assets 7,592,723 8,584,145 3,235,495 3,235,056 2,746,451 2,714,319 13,574,669 14,533,520
======= ======= ======= ======= ======= ======= ======== ========
Current
liabilities 610,773 666,372 160,347 168,232 211,368 209,422 982,488 1,044,026
Non-current
liabilities 1,775,005 1,903,811 1,864,694 1,846,981 1,041,782 1,022,209 4,681,481 4,773,001
------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
Total
liabilities 2,385,778 2,570,183 2,025,041 2,015,213 1,253,150 1,231,631 5,663,969 5,817,027
======= ======= ======= ======= ======= ======= ======= =======
Six months ended 30 Six months ended Six months ended Six months ended 30
June 30 June 30 June June
2013 2012 2013 2012 2013 2012 2013 2012
USD'000 USD'000 USD'000 USD'000 USD'000 USD'000 USD'000 USD'000
(Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited)
Revenue 633,563 624,475 333,196 429,062 250,666 327,192 1,217,425 1,380,729
Expenses (505,797) (479,329) (361,458) (454,091) (244,870) (293,809) (1,112,125) (1,227,229)
----------- ----------- ----------- --------- ----------- --------- ------------- -----------
Net profit 127,766 145,146 (28,262) (25,029) 5,796 33,383 105,300 153,500
====== ====== ===== ===== ==== ===== ====== ======
The Group's share of profit of equity-accounted investees (before separately
disclosed items) for the six months period ended 30 June 48,891 67,866
===== =====
The Group's investment in net assets of equity-accounted investees 2,679,348 3,348,317
======= =======
8 Income tax
The Group's effective tax rate in respect of continuing
operations is as below:
Six months Six months
ended ended
30 June 2013 30 June 2012
(Unaudited) (Unaudited
and restated*)
Before separately disclosed items 16.53% 13.37%
Including separately disclosed items 18.03% 13.37%
====== ======
* Refer to note 3.
The effective tax rate is derived from the profit for the period
after excluding profit on sale and termination of business.
9 Property, plant and equipment
During the six months period ended 30 June 2013, the Group
acquired assets amounting to USD 525,893 thousand (30 June 2012:
USD 252,837 thousand). The de-recognition of assets on account of
disposal of subsidiary was USD 39,567 thousand (30 June 2012:
Nil).
The depreciation on property, plant and equipment during the six
months period ended 30 June 2013 amounted to USD 136,285 thousand
(30 June 2012: USD 147,549 thousand).
Assets with a net carrying amount of USD 1,437 thousand were
disposed by the Group during the six months ended 30 June 2013 (30
June 2012: USD 6,348 thousand), resulting in a gain on disposal of
USD 677 thousand (30 June 2012: loss of USD 939 thousand).
10 Goodwill and port concession rights
Goodwill
During the six months period ended 30 June 2013, the reduction
in goodwill represents the impact of foreign currency translation
of USD 90,735 thousand (30 June 2012: USD 17,749 thousand) and
de-recognition on account of disposal of subsidiary of USD 34,880
thousand (30 June 2012: Nil).
Port concession rights
During the six months period ended 30 June 2013, the Group
acquired port concession rights amounting to USD 17,760 thousand
(30 June 2012: USD 7,568 thousand). The de-recognition of port
concession rights on account of disposal of subsidiary was USD
22,579 thousand (30 June 2012: Nil).
The amortization of port concession rights during the six months
period ended 30 June 2013 amounted to USD 61,000 thousand (30 June
2012: USD 54,346 thousand).
11 Bank balances and cash
30 June 2013 31 December 2012
USD'000 USD'000
(Unaudited) (Audited)
Cash at banks and in hand 453,879 472,409
Short-term deposits 1,885,778 1,362,752
Deposits under lien 128,480 46,767
------------- -------------
Bank balances and cash 2,468,137 1,881,928
Bank overdrafts (1,665) (195)
------------- -------------
Cash and cash equivalents 2,466,472 1,881,733
======= =======
Short-term deposits are maintained for varying periods between
one day and three months depending on the cash requirements of the
Group and earn interest at the normal commercial rates.
Bank overdrafts are payable on demand.
12 Fair values
Fair values versus carrying amounts
The fair values of financial assets and liabilities, together
with the carrying amounts shown in the condensed consolidated
statement of financial position are as follows:
30 June 2013 31 December 2012
Carrying Fair Carrying Fair
amount value amount value
USD'000 USD'000 USD'000 USD'000
Assets carried at fair values
Available-for-sale financial
assets 47,419 47,419 49,556 49,556
===== ===== ===== ======
Assets carried at amortised
cost
Debt securities held to
maturity 11,373 11,244 11,277 11,149
Loans and receivables 616,579 616,579 693,705 693,705
Cash and cash equivalents 2,468,137 2,468,137 1,881,928 1,881,928
------------- ------------- ------------- -------------
3,096,089 3,095,960 2,586,910 2,586,782
======= ======= ======= =======
Liabilities carried at fair
values
Interest rate swaps (92,169) (92,169) (161,823) (161,823)
Forward exchange contracts (684) (684) (35) (35)
--------- --------- ---------- -----------
(92,853) (92,853) (161,858) (161,858)
===== ===== ====== =======
12 Fair values (continued)
30 June 2013 31 December 2012
Carrying Fair Carrying Fair
amount value amount value
USD'000 USD'000 USD'000 USD'000
Liabilities carried at amortised
cost
Secured bank loans * (997,432) (997,432) (872,433) (872,433)
Mortgage debenture stocks (2,167) (2,276) (2,307) (2,662)
Unsecured bond issues (3,238,244) (3,399,484) (3,237,234) (3,734,175)
Unsecured loan stock (8,671) (8,671) (9,006) (9,006)
Finance lease liabilities (33,071) (33,071) (39,651) (39,651)
Unsecured bank and other
loans * (566,500) (566,500) (591,825) (591,825)
Trade and other payables (545,608) (545,608) (635,824) (635,824)
Bank overdraft (1,665) (1,665) (195) (195)
------------- ------------- ------------ ------------
(5,393,358) (5,554,707) (5,388,475) (5,885,771)
======= ======= ======= =======
* A significant portion of these loans carry a variable rate of
interest and hence, the fair values reported are the same as the
carrying values.
Fair value hierarchy
The table below analyses financial instruments carried at fair
value, by valuation method. The different levels have been defined
as follows:
-- Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities
-- Level 2: inputs other than quoted prices included within
Level 1 that are observable for the asset or liability, either
directly (i.e. as prices) or indirectly (i.e. derived from
prices)
-- Level 3: inputs for the asset or liability that are not based
on observable market data (unobservable inputs)
Level Level 2 Level 3
1
USD'000 USD'000 USD'000
30 June 2013
Available-for-sale financial assets - 47,419 -
Derivative financial liabilities - (92,853) -
---- --------- ----
- (45,434) -
== ===== ==
31 December 2012
Available-for-sale financial assets - 49,556 -
Derivative financial liabilities - (161,858) -
---- ----------- ----
- (112,302) -
== ======= ==
The fair values disclosed above is computed in line with the
fair valuation accounting policy as applied by the Group in its
consolidated financial statements as at and for the year ended 31
December 2012.
13 Share capital
The share capital of the Company is as follows:
30 June 2013 31 December 2012
USD'000 USD'000
(Unaudited) (Audited)
Authorised
1,250,000,000 ordinary shares
of USD 2.00 each 2,500,000 2,500,000
======= =======
Issued and fully paid
830,000,000 ordinary shares of
USD 2.00 each 1,660,000 1,660,000
======= =======
14 Dividends paid
Dividends relating to 2012 amounting to USD 199,200 thousand was
paid during the period ended 30 June 2013 (30 June 2012: USD
199,200 thousand).
15 Interest bearing loans and borrowings
The Group's interest bearing loans and borrowings are as
follows:
30 June 2013 31 December 2012
USD'000 USD'000
(Unaudited) (Audited)
Non-current liabilities
Secured bank loans 795,440 669,322
Mortgage debenture stocks 2,167 2,307
Unsecured loan stock 4,968 5,287
Unsecured bank loans 206,948 106,916
Unsecured bond issues 3,238,244 3,237,234
Finance lease liabilities 23,072 28,555
------------ ------------
4,270,839 4,049,621
------------ ------------
Current liabilities
Secured bank loans 201,992 203,111
Unsecured bank loans 359,552 484,909
Unsecured loans 3,703 3,719
Finance lease liabilities 9,999 11,096
---------- ----------
575,246 702,835
------------ ------------
Total 4,846,085 4,752,456
======= ========
Apart from bank loans, there has been no issuance or repayment
of debt securities in the current period (2012: Nil).
16 Transactions with related parties
Transactions with related parties included in the condensed
consolidated interim financial statements are as follows:
30 June 2013
Ultimate Parent Equity-accounted Other related
Company investees parties Total
USD'000 USD'000 USD'000 USD'000
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
Expenses charged
by related parties:
Concession fees - - 24,084 24,084
Shared services - - 345 345
Other recharges - - 14,102 14,102
Revenue earned
from related parties:
Management fee income - 10,467 - 10,467
===== ===== ===== =====
30 June 2012
Ultimate Equity-accounted Other related
Parent Company investees parties Total
USD'000 USD'000 USD'000 USD'000
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
Expenses charged by
related parties:
Concession fees - - 24,082 24,082
Shared services - - 5,229 5,229
Other recharges - - 10,396 10,396
Revenue earned
from related parties:
Management fee income - 11,201 - 11,201
===== ====== ===== ======
Compensation of key management personnel
The remuneration of directors and other key members of the
management during the period were as follows:
Six months Six months
2013 2012
USD'000 USD'000
Short-term benefits and bonus 6,642 5,207
Post-retirement benefits 360 402
------- -------
7,002 5,609
==== ====
16 Transactions with related parties (continued)
Balances with related parties included in the condensed
consolidated interim statement of financial position are as
follows:
30 June 2013 31 December 2012
USD'000 USD'000
Due from related parties: (Unaudited) (Audited)
Ultimate Parent Company 1,871 1,871
Parent Company 53,745 53,450
Equity-accounted investees 140,525 232,973
Other related parties 27,962 24,764
---------- ----------
224,103 313,058
====== ======
Due to related parties:
Ultimate Parent Company 343 194
Equity-accounted investees - 124
Other related parties 12,054 12,864
-------- --------
12,397 13,182
===== =====
17 Operating leases
Operating lease commitments - Group as a lessee
Future minimum rentals payable under non-cancellable operating
leases are as follows:
30 June 2013 31 December 2012
USD'000 USD'000
(Unaudited) (Audited)
Within one year 269,555 303,685
Between one and five years 1,018,329 735,859
Between five to ten years 1,205,220 1,102,940
Between ten to twenty years 1,323,449 1,351,947
Between twenty to thirty years 855,358 1,311,794
Between thirty to fifty years 1,183,835 1,221,425
Between fifty to seventy years 960,654 1,052,910
More than seventy years 983,526 1,029,272
------------ -------------
7,799,926 8,109,832
======= ========
The above operating leases (Group as a lessee) mainly consist of
terminal operating leases arising out of concession arrangements
which do not meet the recognition criteria of IFRIC 12 - 'Service
Concession Arrangement' and are long term in nature. In addition,
there are also leases of plant, equipment and vehicles. In respect
of terminal operating leases, contingent rent is payable based on
revenues/ profits earned in the future period. The majority of
leases contain renewable options for additional lease periods at
rental rates based on negotiations or the prevailing market
rates.
17 Operating leases (continued)
Operating lease commitments - Group as a lessor
Future minimum rentals receivable under non-cancellable
operating leases are as follows:
30 June 2013 31 December 2012
USD'000 USD'000
(Unaudited) (Audited)
Within one year 21,187 21,646
Between one to five years 68,272 84,718
More than five years 28,006 25,640
---------- ----------
117,465 132,004
====== ======
The above operating leases (Group as a lessor) mainly consist of
rental of property, plant and equipment leased out by the Group.
The leases contain renewal options for additional lease periods and
at rental rates based on negotiations or the prevailing market
rates.
18 Capital commitments
30 June 2013 31 December 2012
USD'000 USD'000
(Unaudited) (Audited)
Estimated capital expenditure contracted
for as at
the reporting date 863,246 1,178,529
====== =======
19 Contingent liabilities
(a) The Group has the following contingent liabilities in respect of guarantees issued:
30 June 2013 31 December 2012
Type of guarantee USD'000 USD'000
(Unaudited) (Audited)
Payment guarantees 15,366 15,538
Performance guarantees 142,232 152,556
Letters of credit 280 853
Guarantees issued on behalf of
equity-accounted investees 96,875 98,720
====== ======
19 Contingent liabilities (continued)
(b) The Group through its 100% owned subsidiary Mundra
International Container Terminal Private Limited ("MICT") has
developed and is operating the container terminal at the Mundra
port in Gujarat.
In 2006, MICT received a show cause notice from Gujarat Maritime
Board ("GMBT") requiring MICT to demonstrate that the undertaking
given by its parent company, P&O Ports (Mundra) Private
Limited, with regard to its shareholding in MICT has not been
breached in view of P&O Ports being taken over by the Group (DP
World).
Based on the strong merits of the case and on the advice
received from legal counsel, management believes that the above
litigation is unsubstantiated, and in management's view, it will
have no impact on the Group's ability to continue to operate the
port.
(c) Chennai Port Trust ("CPT") has raised a demand for an amount
of USD 20,078 thousand (2012: USD 21,773 thousand) from Chennai
Container Terminal Limited ("CCTL"), a subsidiary of the Company,
on the basis that CCTL has failed to fulfil its obligations in
respect of non-transhipment containers for a period of four
consecutive years from 1 December 2003. CCTL has subsequently paid
USD 10,727 thousand (2012: USD 11,633 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. However, CPT has appealed against
this order.
[1]Before separately disclosed items (BSDI) Primarily excludes
non-recurring items. In the first half of 2013, DP World reported
separately disclosed items of $151 million, relating mostly tothe
$158 million profit on sale of businesses. There were no separately
disclosed items in the first half of 2012.
[2]2012 H1 was restated in order to accommodate IAS 19 revisions
related to pension liabilities. See note 3 of interim financial
statement for more details
[3]Like for Like at Constant Currency adjusts for (a) new
projects at Embraport (Brazil) and London Gateway (UK); (b)
divested equity-accounted investees Tilbury (UK), Aden (Yemen),
Antwerp Breakbulk (Belgium), Adelaide (Australia), Vostochny
(Russia), DMS (P&O Maritime), ACT (Hong Kong) ; (c) the
treatment of CT3 (Hong Kong) as a joint venture terminal from June
2012; and (d) removes the impact of exchange rates as our financial
results are translated into US dollars for reporting purposes.
[4]Consolidated throughput is throughput from all terminals
where we have control under IFRS.
[5]Adjusted EBITDA is Earnings before Interest, Tax,
Depreciation & Amortisation including share of profit from
equity-accounted investees before separately disclosed items.
[6]Like for Like Adjusted EBITDA Margin
[7] Like for Like Adjusted EBITDA Margin
[8] Like for Like Adjusted EBITDA Margin
[9] Like for Like Adjusted EBITDA Margin
This information is provided by RNS
The company news service from the London Stock Exchange
END
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