Dubai / WAM
DP World generated a cash flow of $1.43 billion (AED 5.3 billion) as at December 31, 2015, in spite of the global economic slowdown and world trade slump. The strong cash generation is due to the Group’s ambitious expansion plan and growth of its portfolio of global terminals and business volumes, particularly in Mumbai in India and Yarimca in Turkey both of which added 800k TEU of capacity each, in addition to 850k TEU capacity which came in line with the acquisition of Prince Rupert terminal in Canada, and continued expansion in London Gateway Logistics Park in UK and Jebel Ali Freezone in UAE.
It is expected that DP World will make good use of such remarkable business growth and available cash pile to further boost its operations locally and worldwide. The Group has allocated around $1.2bn to $1.4bn of capital expenditure for investments planned into Jebel Ali and Jebel Ali Freezone , UAE, London Gateway in the UK and Prince Rupert in Canada over the year 2016.
The Dubai-based global ports operator sets the UAE at the vanguard of world economy as a global provider of knowhow and expertise in many industries, including ports, free zones, trade, freight and logistics. The company is also a great enabler of national economic diversification, besides its role in supporting the economies of friendly nations.
Boasting a solid portfolio of 70 marine and mainland terminals across the six continents, DP World predicts to have approximately 86 million TEU of gross global capacity by the end of 2016, an increase of nearly 15 million TEU since 2012, and over 100 million TEU of gross capacity by 2020.
Sultan Ahmed bin Sulayem, Chairman and CEO of DP World and Chairman of Ports, Customs and Free Zone Corporation (PCFC), said the milestones achieved by the Group over its existence are attributed to the directives of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai. “These achievements culminated in a historic profit growth of 30.7% to $883 million (AED 3.24 billion) during 2015, and revenues up by 16% to $3.97 billion (AED 14.6 billion). DP World looks forward to making an even greater contribution to the nation’s looming transition to ‘post-oil future’ by strongly supporting sustainable development of the UAE and Dubai in particular to realize the aspirations of UAE Vision 2021 and Dubai Plan 2021.”
The Chairman added that DP World will continue to expand its investments and add further capacity at home and overseas. Last year, the company invested approximately $5.4 billion (AED 19.8 billion) with $4.0 billion (AED 14.6 billion) in strategic acquisitions, which included Economic Zones World (UAE), inland terminals in Mannheim and Stuttgart (Germany) and the Fairview Container Terminal in Prince Rupert (Canada), a key gateway port for trans-pacific trade; and $1.4 billion (AED 5.1 billion) in capex during the year, including projects in India, Turkey, UAE and UK.