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DB World Group announced that it achieved profits of $884 million (AED 3.2 billion), a growth of 51.2% for the first half of 2022 compared to the same period last year, which amounted to $585 million (AED 2.14 billion), and achieved record profits attributable to the owners of the company amounting to $721 million (2.64 billion dirhams), a growth of 51.8%, compared to the first half of last year, which amounted to $475 million.
The group’s total revenues during the first half amounted to 7.93 billion dollars (29.1 billion dirhams), a growth of 60.4%, and container revenues per 20-foot standard container increased by 9.2%, driven by the increasing demand for storage.
Cash generated from operational operations increased by 29.6%, reaching $1.93 billion (AED 7 billion) during the first half of 2022, compared to $1.49 billion (AED 5.4 billion) during the same period in 2021.
The combined debt ratio, including the “Ports and Free Zones International” company guarantee (the ratio of net debt to EBITDA-adjusted ratio on an annual basis) decreased to 3.8 times, compared to 5.9 times in the fiscal year 2021, while the net ratio was The debt is 4.1 times, compared to 6 times in the fiscal year 2021.
DB World’s credit rating improved, as Fitch upgraded the company’s rating to the investment category (BBB-) with a positive future outlook, while Moody’s maintained its rating at Baa3.
Expanded partnerships and monetization raised nearly $9 billion to significantly enhance the company’s balance sheet and provide long-term resilience. The scope of the partnership with the global investment group “Cas de Depot et Plasman de Québec” – “CDBQ” has been expanded in the UAE to take advantage of the growth potential in the region.
The CDBQ deal in the UAE raised $5 billion in the first tranche for a 22% stake in the three UAE assets, and is expected to raise up to $3 billion in the second tranche. The scope of the partnership with the National Investment and Infrastructure Fund of India has also been expanded, and it is expected to raise about $300 million, which will allow for acceleration of investment across ports and logistics.
The company has started a new partnership with BII, the investment development arm of the British government, to boost trade potential in Africa.
The company invested $741 million in capital expenditures across its current portfolio during the first half of the year. Capital expenditure guidance for 2022 is $1.4 billion, and includes the implementation of planned investments in the UAE and Jeddah (Saudi Arabia), London Gateway (UK), Sokhna Port (Egypt), Senegal and Callao (Peru). .
The new logistics assets realize value-added potential in fast-growing markets and sectors. The focus in the short term remains on continuing the business transformation to enhance returns. Also, value-added solutions are offered to cargo owners by utilizing best-in-class infrastructure that includes logistics, ports, container terminals, economic zones, digital and marine services.
Sultan Ahmed Bin Sulayem, Chairman and CEO of DB World Group, said: “We are pleased to report record results in the first half of the year with EBITDA-adjusted growth of 34.6% and profit attributable to shareholders increasing by 51.8%. This significant growth demonstrates that our strategy of focusing on high-margin merchandise and offering customized supply chain solutions will provide sustainable returns over the long term.
Bin Sulayem added: “It is encouraging that cargo owners continue to respond positively to our integrated product offerings, and we are currently focused on integrating our recent logistics acquisitions to drive revenue. We continue to invest in high-growth sectors and markets to provide more attractive supply chain solutions. DB World also aims to remove obstacles and improve connectivity across major trade corridors by utilizing best-in-class infrastructure that includes logistics, ports, container terminals, economic zones, digital and marine services.
He said, “In recent months, we have announced several deals that will contribute to raising nearly $9 billion, and by strengthening the company’s balance sheet, we have been able to achieve the goal related to the debt ratio for 2022 with less than 4 times the ratio of net debt to earnings before interest is deducted.” and tax, depreciation and amortization, and the new capital will provide the company with flexibility to accelerate investment in key growth markets, while maintaining a strong investment rating.
“Overall, the strong performance in the first half puts us in a good position to deliver an improved performance for the full year,” he concluded. However, the near-term outlook remains uncertain due to the more difficult macro and geopolitical environment, and therefore, we expect growth rates to decline in the second half of 2022, but we remain optimistic about the sector’s performance in the medium and long term, as well as the ability of DB World» to continue to achieve sustainable returns.
Results that exceeded all expectations
Yuvraj Narayan, Executive Vice President and Chief Financial Officer confirmed that DBworld’s results in the first half of 2022 exceeded all expectations, with adjusted EBITDA of $2.44 billion, an increase of 23.6% on a like-for-like basis. , while our adjusted EBITDA margin remained stable at 30.8%. The announced revenues witnessed a growth of 60.4% to reach 7.93 billion dollars, and the income attributable to shareholders increased by 51.8%.
He said that the group strengthened its balance sheet, and achieved its goal of the debt ratio during the year (for both «DB World» and «Ports and Free Zones International»), which is less than 4.0 times the ratio of net debt to adjusted earnings before interest, taxes, depreciation and amortization Six months ahead of schedule. The business continued to achieve high levels of cash flow with operating cash flow increasing by 29.6% year-on-year to reach $1,931 billion.
Narayan referred to the improvement in the credit rating enjoyed by DB World, as Fitch Ratings improved the company’s rating at the investment category (BBB-) with positive future expectations, while Moody’s maintained its rating of the group at (Baa3). The Group continues to target a strong investment rating.
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