TIDMDPW
RNS Number : 1591Q
DP World Limited
28 August 2014
DP WORLD LIMITED LIKE-FOR-LIKE PROFIT GROWS
41% IN FIRST SIX MONTHS OF 2014
Dubai, UAE Thursday 28 August 2014: Global marine terminal
operator DP World today announces strong financial results from its
global portfolio of marine terminals for the six months to 30 June
2014, delivering profit attributable to owners of the Company
before separately disclosed items of $332 million, 40.8% ahead of
the first half of 2013 on a like-for-like basis.
Results before separately
disclosed items([1]) unless like-for-like
otherwise stated 1H14 1H13 % change % change([2])
USD million
Consolidated throughput
([3]) (TEU '000) 13,889 12,807 8.5% 11.2%
Revenue 1,659 1,509 9.9% 11.6%
Share of profit from equity-accounted
investees 51 49 4.7% 18.4%
Adjusted EBITDA([4]) 778 689 12.9% 19.1%
Adjusted EBITDA margin 46.9% 45.6% - 48.6%(5)
Profit for the period 372 295 26.0% 42.3%
Profit for the period attributable
to owners of the Company 332 264 25.8% 40.8%
Profit for the period attributable
to owners of the Company
after separately disclosed
items 341 398 (14.4%) -
Earnings per share attributable
to owners of the Company
(US cents) (EPS) 40.0 31.8 25.8% 40.8%
--------------------------------------- ------- ------- --------- ---------------
Ø Revenue of $1,659 million; (1H2013 revenue of $1509
million)
-- Like-for-like revenue increased 11.6% driven predominately by
containerised revenue growth of 12.0% on a like-for-like basis
-- Containerised revenue per TEU (twenty-foot equivalent unit)
grew 0.8% on a like-for-like basis
Ø Adjusted EBITDA of $778 million; adjusted EBITDA margin of
46.9%; (1H2013 adjusted EBITDA of $689 million; adjusted EBITDA
margin 45.6%)
-- Adjusted EBITDA margin improved due to strong throughput
growth at higher margin locations coupled with cost control
measures
Ø Profit for the period attributable to owners of the Company of
$332 million; (1H2013 attributable income of $264 million)
-- Strong adjusted EBITDA growth resulted in a 40.8% increase in
like-for-like profit attributable to owners of the Company before
separately disclosed items
Ø Strong cash generation and balance sheet remains robust
-- Net cash from operating activities increased to $551
million
-- Leverage (Net Debt to adjusted annualised EBITDA) stands at
1.6 times
Ø Continued investment in quality long-term assets to drive
long-term profitable growth
-- $350 million invested across the portfolio in the first
half
-- Jebel Ali (UAE) will add a further 2 million TEU capacity in
the fourth quarter of 2014 as it operates at over 90%
utilisation
-- By 2015 we expect to have approximately 85 million TEU of
capacity globally and over 100 million of TEU of capacity by 2020,
subject to market demand.
DP World Chairman, Sultan Ahmed Bin Sulayem commented:-
"DP World is pleased to announce another strong set of first
half results. The addition of new capacity and a pick-up in global
trade has resulted in a return to robust volume growth, which has
translated into an impressive financial performance. Our portfolio
is well positioned to capitalise on the significant medium to
long-term growth potential of this industry and we continue to seek
new opportunities in the faster growing markets."
Group Chief Executive Mohammed Sharaf commented:-
"We have reported an excellent set of financial results for the
first six months of 2014, delivering 11.6% like-for-like revenue
growth. Encouragingly, earnings continue to significantly outpace
revenue growth with 19.1% EBITDA growth and 40.8% EPS growth on a
like-for-like basis.
"The substantial investment programme that we initiated in 2012
is starting to bear fruit as new capacity aids in the delivery of
stronger top and bottom line growth. We have made good progress at
our recently opened greenfield projects in Embraport, Brazil and DP
World London Gateway, UK and we look forward to adding a further 8
million TEU of capacity to our portfolio over the next two years,
providing further opportunity for growth. Crucially, our balance
sheet remains strong and we continue to generate high levels of
cashflow, 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 near term outlook remains encouraging, however continued
geopolitical issues may result in challenges as the year
progresses. Overall, we believe our business is well positioned for
medium to long-term growth and we expect to continue to outperform
the market. We remain focused on delivering relevant new capacity
in the right markets, improving efficiencies, containing costs and
handling higher margin containers to drive profitability. Our
strong first half performance gives us confidence in meeting full
year market expectations"
The Group Chief Executive's Review and the 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 "investors" section at
www.dpworld.com from approximately 0900 UAE time this morning. A
dial 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 bylaw, DP World does not undertake to
update or revise forward-looking statements to reflect any changes
in DP World's expectations with regard thereto or any changes in
information, events, conditions or circumstances on which any such
statement is based.
Chief Executive's Review
DP World's strong first half performance reinforces our view
that operating a diversified portfolio with a focus on faster
growing markets and origin and destination cargo will deliver
superior earnings growth and enhance shareholder value.
The macroeconomic environment in 2014 has been more encouraging
when compared with the challenging first half of 2013 and this is
demonstrated through our robust throughput performance. We have
seen some signs of recovery in Europe, while trade in the Asia
Pacific and Indian Subcontinent region has bounced back. The UAE
continues to deliver solid growth while performance in Latin
America and Australia has been steady. Overall we remain encouraged
by the performance in the first six months.
We continue to demonstrate significant operational leverage in
our business. In the first half of 2014 on a like-for-like basis,
we have delivered 40.8% attributable earnings growth and 19.1%
adjusted EBITDA growth on consolidated volume growth of 11.2%.
This improvement in profitability is a reflection of our
strategy to continue focusing on our cost structure while adding
relevant capacity in the right locations, meeting our customers'
needs 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. $350 million has been invested in the first
half of 2014. By 2015 we expect to have approximately 85 million
TEU of capacity globally subject to market demand, 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, while maintaining the existing shape of
our portfolio that has a 70% exposure to origin and destination
cargo and 75% exposure to faster growing markets.
During the year we reviewed our funding plans and raised $1
billion through a convertible bond at attractive finance and
conversion terms, and also increased our revolver facility from $1
billion to $3 billion. These actions have left 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.
While we have enjoyed a positive first half, we expect growth
rates to moderate in the second half as the comparable period
becomes more challenging. However, historically our second half
throughput performance has been stronger than the first and we
expect that trend to continue. The solid financial performance of
the first six months is reassuring and we are confident of meeting
full-year market expectations.
Operating and Financial Review
Given the more benign trade environment, we have focused our
efforts on translating improved volume and top line growth into
strong bottom line performance. We have been largely successful in
this strategy as we are able to report impressive like-for-like
adjusted EBITDA growth of 19.1%; like-for-like adjusted EBITDA
margin improvement of 300 basis points to 48.6% and like-for-like
EPS growth of 40.8% on like-for-like revenue growth of 11.6%.
We have delivered a solid performance across our portfolio in
the first six months with key growth drivers being the UAE, Europe,
Asia and Indian Subcontinent.
Revenue for the first six months of the year was $1,659 million,
9.9% ahead of the same period in the prior year. However, on a
like-for-like basis, revenue grew by 11.6%, marginally ahead of
volume growth of 11.2%. This is explained by a 12.0% increasein
containerised revenue and 10.2% rise in non-container revenue
growth. Total revenue per TEU rose 0.4% on a like-for-like
basis.
Our share of profit from equity-accounted investeeswas at $51.2
million, 4.7% higher than the prior period. On a like-for-like
basis profit from the equity-accounted investees for the first half
has risen 18.4% due to a stronger performance from the Asia Pacific
region.
Adjusted EBITDA was $777.8 million, 12.9% ahead of the same
period last year and up 19.1% on a like-for-like basis with
adjusted EBITDA margin well ahead of thecomparative period at
48.6%.
Profit attributable to owners of the Company, before separately
disclosed items was $331.8 million, 40.8% ahead on a like-for-like
basis.
During the first six months of the year we invested $350 million
in our portfolio. This investment was focused mainly in Middle East
and Europe terminals including Jebel Ali (UAE) and Yarimca
(Turkey). We expect to open Jebel Ali Terminal Three (T3) phase one
(two million TEU) in the fourth quarter of 2014, with phase two
(two million TEU) now coming in the first half of 2015 due to some
equipment delays. Yarimca is on course to open in the second half
of 2015. Our capex guidance for 2014 now stands at $1.4 billion,
with the remaining balance shifting to 2015.
Middle East, Europe and Africa
The Middle East, Europe and Africa region delivered a strong
performance with solid top and bottom line growth. Adjusted EBITDA
improved by a significant 17.5%, while adjusted EBITDA margin
expanded to 52.4% due to throughput growth at higher margin
locations. Performance in Europe has been encouraging albeit from a
low base.
Results before separately like-for-like
disclosed items 1H14 1H13 % change % change
USD million
Consolidated throughput
(TEU '000) 10,248 9,151 12.0% 11.0%
Revenue 1,157 1,025 12.8% 10.5%
Share of profit from equity-accounted
investees 7.2 0.3 n/a n/a
Adjusted EBITDA 606 516 17.5% 21.3%
Adjusted EBITDA margin 52.4% 50.3% - 55.4%([5])
--------------------------------------- ------- ------ --------- --------------
Revenue of $1,157 million is up 12.8% year-on-year, broadly in
line with throughput growth.
Our share of profit from equity-accounted investees increased to
$7.2 million due to a stronger performance in Europe.
Adjusted EBITDA was $606 million, 17.5% ahead of the same period
last year due to strong throughput growth which helped drive
adjusted EBITDA margin to 52.4%.
Like-for-like revenue growth at constant currency was 11.0%
ahead of the prior year and adjusted
EBITDA improved by 21.3%. Like-for-like adjusted EBITDA margins
stood at 55.4%. Like-for-like revenue growth was marginally behind
throughput growth due to non-container revenue growth lagging
containerised revenue growth.
The UAE delivered a solid performance in the first half with
containerised revenue growing by 13.1% and non-container revenue by
9.5% as the economy in the UAE and wider region remained robust.
Growth continued to be driven by tourism and logistics, while the
benefits of the Expo 2020 are still to come.
Investment in our terminals in this region in the first six
months of the year was $318 million. This investment was focused
across the Middle East and Europe terminals including Jebel Ali
(UAE), DP World London Gateway Port (UK) and Yarimca (Turkey).
Asia Pacific and Indian Subcontinent
The Asia Pacific and Indian Subcontinent region reported a much
stronger performance relative to the prior period as trade volumes
recovered and currency volatility stabilised.
Results before separately like-for-like
disclosed items 1H14 1H13 % change % change
USD million
Consolidated throughput
(TEU '000) 2,411 2,469 (2.4%) 16.5%
Revenue 190 192 (1.1%) 21.9%
Share of profit from equity-accounted
investees 54 53 1.7% 21.3%
Adjusted EBITDA 130 122 6.8% 29.7%
Adjusted EBITDA margin 68.4% 63.3% - 65.5%(5)
--------------------------------------- ------ ------ --------- --------------
Revenue was $190 million, 1% lower on a reported basis due to
the monetisation of Hong Kong but up 21.9% on a like-for-like basis
as we saw a recovery in both intra-Asia trade and Indian
subcontinent due to the more stable political environment.
Our share of profit from equity-accounted investees at $54
million rose 21.3% on a like-for-like basis mainly due to the
strong performance in China and South Korea.
Adjusted EBITDA of $130 million was 6.8% higher than the same
period last year, reflecting the recovery in revenue, which also
aided adjusted EBITDA margin to rise to 68.4%. Like-for-like
adjusted EBITDA rose 29.7% while like-for-like adjusted EBITDA
margin stood at 65.5%.
Australia and Americas
Our terminals in the Australia and Americas region delivered a
robust financial performance despite modest throughput growth in
the first six months of 2014.
Reported results before like-for-like
separately disclosed items 1H14 1H13 % change % change
USD million
Consolidated throughput
(TEU '000) 1,231 1,187 3.7% 3.7%
Revenue 312 292 6.9% 9.7%
Share of profit from equity-accounted
investees (9.5) (4.0) (n/a) (n/a)
Adjusted EBITDA 122 100 22.0% 19.8%
Adjusted EBITDA margin 39.0% 34.2% - 38.6%(5)
--------------------------------------- ------ ------ --------- --------------
Revenue grew by 6.9% to $312 million, as containerised revenue
per TEU rose 6.6%. The loss from equity-accounted investees
increased to $9.5 million due to a softer performance in
Australia.
Adjusted EBITDA was $122 million, up by 22% 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 9.7%
ahead of the prior year whilst adjusted EBITDA increased 19.8%.
Net finance costs
Net finance cost for the six months was lower than the prior
period at $140 million (2013: $154.5 million) due to lower interest
expense coupled with an increased cash balance.
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 $60 million (2013: $42
million).
Profit attributable to non-controlling interests (minority
interest)
Profit attributable to non-controlling interests (minority
interest) before separately disclosed items was $40.4 million,
(2013: $31.6 million) ahead of the comparable period due to a
generally stronger performance in Europe.
Separately disclosed items
DP World reported separately disclosed items of $9.2 million,
representing the profit on settlement of the final consideration
relating to the acquisition of additional interest in a
subsidiary.
Earnings per Share (EPS)
As at 30 June 2014, EPS after separately disclosed items was
41.1 US cents. This is lower than the comparable period, as 2013
benefitted from the monetisation in Hong Kong. EPS before
separately disclosed items was 40.0 US cents, 26% growth on prior
year. Like-for-like EPS growth stood at 40.8%.
Net Debt
As at 30 June 2014 our net debt was $2.3 billion compared to
$2.4 billion in 1H 2013. Gross debt rose to $5.8 billlion due to
the issuance of the $1 billion convertible bond. Bank balances and
cash increased to $3.5 billion, as the proceeds from the
convertible are yet to be deployed.
Long-term corporate bonds totaled $3.25 billion made up of a
$1.75 billion 30 year unsecured MTN due in 2037 and a $1.5 billion
10-year unsecured sukuk due in 2017. In addition we have a $1.0
billion convertible bond due in 2024 and $1.8 billion of debt at
the subsidiary level.
Leverage (net debt to adjusted annualised EBITDA) stands at 1.6
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 2014 will be proposed at
the time of the preliminary results in March 2015.
Mohammed Sharaf Yuvraj Narayan
Group Chief Executive Officer Group Chief Financial Officer
DP World Limited
and its subsidiaries
Condensed consolidated
interim financial statements
30 June 2014
1.
DP World Limited and its subsidiaries
Condensed consolidated interim financial statements
for the six months ended 30 June 2014
Contents Page
Independent auditors' report on review of interim financial
information
1
Condensed consolidated statement of profit or loss 2
Condensed consolidated statement of other comprehensive income
3
Condensed consolidated statement of financial position 4 - 5
Condensed consolidated statement of changes in equity 6 - 7
Condensed consolidated statement of cash flows 8 - 9
Notes to the condensed consolidated interim financial statements
10 - 29
Independent auditors' report on review of interim financial
information
The Shareholders
DP World Limited
Introduction
We have reviewed the accompanying condensed consolidated
statement of financial position of DP World Limited ("the Company")
and its subsidiaries (collectively referred to as "the Group") as
at 30 June 2014, the condensed consolidated statements of profit or
loss and other comprehensive income, changes in equity and cash
flows for the six month period then ended, and notes to the interim
financial information ('the condensed consolidated interim
financial information'). Management is responsible for the
preparation and presentation of this condensed consolidated interim
financial information in accordance with IAS 34, 'Interim Financial
Reporting'. Our responsibility is to express a conclusion on this
condensed consolidated interim financial information based on our
review.
Scope of review
We conducted our review in accordance with the International
Standard on Review Engagements 2410, 'Review of Interim Financial
Information Performed by the Independent Auditor of the Entity'. A
review of condensed consolidated interim financial information
consists of making inquiries, primarily of persons responsible for
financial and accounting matters, and applying analytical and other
review procedures. A review is substantially less in scope than an
audit conducted in accordance with International Standards on
Auditing and consequently does not enable us to obtain assurance
that we would become aware of all significant matters that might be
identified in an audit. Accordingly, we do not express an audit
opinion.
Conclusion
Based on our review, nothing has come to our attention that
causes us to believe that the accompanying condensed consolidated
interim financial information as at 30 June 2014 is not prepared,
in all material respects, in accordance with IAS 34 'Interim
Financial Reporting'.
KPMG LLP
28 August 2014
DP World Limited and its subsidiaries
Condensed consolidated statement of profit or loss
For the six months ended 30 June 2014
Period ended 30 June 2014 Period ended 30 June 2013
------------------- ----- ---------------------------------------------- -----------------------------------------
Before Separately Before Separately
separately disclosed Total separately disclosed Total
disclosed items disclosed items
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 1,658,953 - 1,658,953 1,509,409 - 1,509,409
------------------- ----- ----------------- ------------ ------------- ------------ ------------ -------------
Cost of sales (956,445) - (956,445) (933,855) - (933,855)
------------------- ----- ----------------- ------------ ------------- ------------ ------------ -------------
----------- ------ ------------ ----------- ------ ------------
------------------- ----- ----------------- ------------ ------------- ------------ ------------ -------------
Gross profit 702,508 - 702,508 575,554 - 575,554
------------------- ----- ----------------- ------------ ------------- ------------ ------------ -------------
General and
administrative
expenses (191,745) - (191,745) (142,366) (2,280) (144,646)
------------------- ----- ----------------- ------------ ------------- ------------ ------------ -------------
Other income 10,526 9,153 19,679 9,610 - 9,610
------------------- ----- ----------------- ------------ ------------- ------------ ------------ -------------
Share of profit of
equity-accounted
investees
(net of tax) 7 51,171 - 51,171 48,891 - 48,891
------------------- ----- ----------------- ------------ ------------- ------------ ------------ -------------
Profit on sale and
termination of
business - - - - 158,188 158,188
------------------- ----- ----------------- ------------ ------------- ------------ ------------ -------------
---------- ------- ---------- ---------- ---------- ----------
------------------- ----- ----------------- ------------ ------------- ------------ ------------ -------------
Results from
operating
activities 572,460 9,153 581,613 491,689 155,908 647,597
------------------- ----- ----------------- ------------ ------------- ------------ ------------ -------------
---------- ------- ---------- ---------- ---------- ----------
------------------- ----- ----------------- ------------ ------------- ------------ ------------ -------------
Finance income 45,463 - 45,463 36,868 - 36,868
------------------- ----- ----------------- ------------ ------------- ------------ ------------ -------------
Finance costs (185,540) - (185,540) (191,432) - (191,432)
------------------- ----- ----------------- ------------ ------------- ------------ ------------ -------------
----------- ------ ------------ ----------- ------ -----------
------------------- ----- ----------------- ------------ ------------- ------------ ------------ -------------
Net finance costs (140,077) - (140,077) (154,564) - (154,564)
------------------- ----- ----------------- ------------ ------------- ------------ ------------ -------------
----------- ------ ------------ ----------- ------ -----------
------------------- ----- ----------------- ------------ ------------- ------------ ------------ -------------
Profit before tax 432,383 9,153 441,536 337,125 155,908 493,033
------------------- ----- ----------------- ------------ ------------- ------------ ------------ -------------
Income tax 8 (60,187) - (60,187) (41,759) (4,900) (46,659)
------------------- ----- ----------------- ------------ ------------- ------------ ------------ -------------
---------- ------- ---------- ---------- ---------- ----------
------------------- ----- ----------------- ------------ ------------- ------------ ------------ -------------
Profit for the
period 372,196 9,153 381,349 295,366 151,008 446,374
------------------- ----- ----------------- ------------ ------------- ------------ ------------ -------------
---------- ------- ---------- ---------- ---------- ----------
------------------- ----- ----------------- ------------ ------------- ------------ ------------ -------------
Profit
attributable
to:
------------------- ----- ----------------- ------------ ------------- ------------ ------------ -------------
Owners of the
Company 331,757 9,153 340,910 263,729 134,358 398,087
------------------- ----- ----------------- ------------ ------------- ------------ ------------ -------------
Non-controlling
interests 40,439 - 40,439 31,637 16,650 48,287
------------------- ----- ----------------- ------------ ------------- ------------ ------------ -------------
---------- ------- ---------- ---------- ---------- ----------
------------------- ----- ----------------- ------------ ------------- ------------ ------------ -------------
Profit for the
period 372,196 9,153 381,349 295,366 151,008 446,374
------------------- ----- ----------------- ------------ ------------- ------------ ------------ -------------
====== ==== ====== ====== ====== ======
------------------- ----- ----------------- ------------ ------------- ------------ ------------ -------------
Earnings per share
------------------- ----- ----------------- ------------ ------------- ------------ ------------ -------------
Basic earnings per 15
share - US cents (a) 41.07 47.96
------------------- ----- ----------------- ------------ ------------- ------------ ------------ -------------
Diluted earnings
per 15
share - US cents (b) 41.02 47.96
------------------- ----- ----------------- ------------ ------------- ------------ ------------ -------------
==== ====
------------------------- ----------------- ------------ ------------- ------------ ------------ -------------
The accompanying notes 1 to 21 form an integral part of these
condensed consolidated interim financial statements.
DP World Limited and its subsidiaries
Condensed consolidated statement of other comprehensive
income
For the six months ended 30 June 2014
30 June 2014 30 June
2013
--------------------------------------- ------------- ------------
USD'000 USD'000
--------------------------------------- ------------- ------------
(Unaudited) (Unaudited)
--------------------------------------- ------------- ------------
Profit for the period 381,349 446,374
--------------------------------------- ------------- ------------
---------- ----------
--------------------------------------- ------------- ------------
Other comprehensive income
--------------------------------------- ------------- ------------
Items that are or may be reclassified
subsequently to
consolidated statement of
profit or loss:
--------------------------------------- ------------- ------------
Foreign exchange translation
differences for foreign
operations * 137,791 (410,002)
--------------------------------------- ------------- ------------
Foreign exchange recycled to
the condensed consolidated
statement of profit or loss
on sale of businesses - (4,316)
--------------------------------------- ------------- ------------
Effective portion of net changes
in fair value of cash flow
hedges (12,329) 58,205
--------------------------------------- ------------- ------------
Net change in fair value of
available for sale financial
assets (221) (2,137)
--------------------------------------- ------------- ------------
Share in other comprehensive
income of equity-
accounted investees (6,634) 6,826
--------------------------------------- ------------- ------------
Related tax on fair value of
cash flow hedges 3,470 (10,084)
--------------------------------------- ------------- ------------
Items that will never be reclassified
to consolidated income
statement:
--------------------------------------- ------------- ------------
Remeasurements of post-employment
benefit obligations (23,194) 36,839
--------------------------------------- ------------- ------------
Related tax 1,052 (1,037)
--------------------------------------- ------------- ------------
----------- --------
--------------------------------------- ------------- ------------
Other comprehensive income
for the period, net of income
tax 99,935 (325,706)
--------------------------------------- ------------- ------------
--------- -----------
--------------------------------------- ------------- ------------
Total comprehensive income
attributable to:
--------------------------------------- ------------- ------------
Owners of the Company 433,294 78,176
--------------------------------------- ------------- ------------
Non-controlling interests 47,990 42,492
--------------------------------------- ------------- ------------
----------- -----------
--------------------------------------- ------------- ------------
481,284 120,668
--------------------------------------- ------------- ------------
====== ======
--------------------------------------- ------------- ------------
* 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 21 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 2014
31 December
30 June 2014 2013
-------------------------------- ----- --------------- ---------------
Note USD'000 USD'000
-------------------------------- ----- --------------- ---------------
(Unaudited) (Audited)
-------------------------------- ----- --------------- ---------------
Assets
-------------------------------- ----- --------------- ---------------
Non-current assets
-------------------------------- ----- --------------- ---------------
Property, plant and
equipment 9 6,332,159 6,069,785
-------------------------------- ----- --------------- ---------------
Goodwill 10 1,571,309 1,532,238
-------------------------------- ----- --------------- ---------------
Port concession rights 10 2,934,849 2,904,481
-------------------------------- ----- --------------- ---------------
Investment in equity-accounted
investees 7 2,726,344 2,700,703
-------------------------------- ----- --------------- ---------------
Deferred tax assets 1,355 4,393
-------------------------------- ----- --------------- ---------------
Other investments 72,707 62,923
-------------------------------- ----- --------------- ---------------
Accounts receivable
and prepayments 204,473 181,110
-------------------------------- ----- --------------- ---------------
-------------- -------------
-------------------------------- ----- --------------- ---------------
Total non-current
assets 13,843,196 13,455,633
-------------------------------- ----- --------------- ---------------
-------------- --------------
-------------------------------- ----- --------------- ---------------
Current assets
-------------------------------- ----- --------------- ---------------
Inventories 57,264 51,717
-------------------------------- ----- --------------- ---------------
Accounts receivable
and prepayments 732,266 680,694
-------------------------------- ----- --------------- ---------------
Bank balances and
cash 11 3,492,609 2,572,470
-------------------------------- ----- --------------- ---------------
------------- -------------
-------------------------------- ----- --------------- ---------------
Total current assets 4,282,139 3,304,881
-------------------------------- ----- --------------- ---------------
------------- -------------
-------------------------------- ----- --------------- ---------------
Total assets 18,125,335 16,760,514
-------------------------------- ----- --------------- ---------------
======== ========
-------------------------------- ----- --------------- ---------------
DP World Limited and its subsidiaries
Condensed consolidated statement of financial position
(continued)
As at 30 June 2014
30 June 31 December
2014 2013
--------------------------------- ----- --------------- --------------
Note USD'000 USD'000
--------------------------------- ----- --------------- --------------
(Unaudited) (Audited)
--------------------------------- ----- --------------- --------------
Equity
--------------------------------- ----- --------------- --------------
Share capital 13 1,660,000 1,660,000
--------------------------------- ----- --------------- --------------
Share premium 2,472,655 2,472,655
--------------------------------- ----- --------------- --------------
Shareholders' reserve 2,000,000 2,000,000
--------------------------------- ----- --------------- --------------
Retained earnings 3,558,514 3,408,504
--------------------------------- ----- --------------- --------------
Hedging and other reserves (36,913) (31,384)
--------------------------------- ----- --------------- --------------
Actuarial reserve (363,349) (343,269)
--------------------------------- ----- --------------- --------------
Translation reserve (489,984) (620,706)
--------------------------------- ----- --------------- --------------
------------ ------------
--------------------------------- ----- --------------- --------------
Total equity attributable
to equity
holders of the Company 8,800,923 8,545,800
--------------------------------- ----- --------------- --------------
Non-controlling interests 505,268 475,741
--------------------------------- ----- --------------- --------------
------------ ------------
--------------------------------- ----- --------------- --------------
Total equity 9,306,191 9,021,541
--------------------------------- ----- --------------- --------------
------------ ------------
--------------------------------- ----- --------------- --------------
Liabilities
--------------------------------- ----- --------------- --------------
Non-current liabilities
--------------------------------- ----- --------------- --------------
Deferred tax liabilities 940,970 935,586
--------------------------------- ----- --------------- --------------
Employees' end of service
benefits 68,331 61,740
--------------------------------- ----- --------------- --------------
Pension and post-employment
benefits 188,452 169,778
--------------------------------- ----- --------------- --------------
Interest bearing loans
and borrowings 16 5,683,890 4,776,690
--------------------------------- ----- --------------- --------------
Accounts payable and
accruals 493,501 281,246
--------------------------------- ----- --------------- --------------
------------ ------------
--------------------------------- ----- --------------- --------------
Total non-current liabilities 7,375,144 6,225,040
--------------------------------- ----- --------------- --------------
------------ ------------
--------------------------------- ----- --------------- --------------
Current liabilities
--------------------------------- ----- --------------- --------------
Income tax liabilities 206,325 210,347
--------------------------------- ----- --------------- --------------
Bank overdrafts 11 - 1,407
--------------------------------- ----- --------------- --------------
Pension and post-employment
benefits 8,866 10,068
--------------------------------- ----- --------------- --------------
Interest bearing loans
and borrowings 16 144,225 258,327
--------------------------------- ----- --------------- --------------
Accounts payable and
accruals 1,084,584 1,033,784
--------------------------------- ----- --------------- --------------
------------ ------------
--------------------------------- ----- --------------- --------------
Total current liabilities 1,444,000 1,513,933
--------------------------------- ----- --------------- --------------
------------ -------------
--------------------------------- ----- --------------- --------------
Total liabilities 8,819,144 7,738,973
--------------------------------- ----- --------------- --------------
-------------- -------------
--------------------------------- ----- --------------- --------------
Total equity and liabilities 18,125,335 16,760,514
--------------------------------- ----- --------------- --------------
======== =========
--------------------------------- ----- --------------- --------------
The accompanying notes 1 to 21 form an integral part of these
condensed consolidated interim financial statements. The condensed
consolidated financial statements were authorised for issue on 28
August 2014.
..................................................................
.................................................................
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 2014
Attributable to equity holders of the Company
Hedging
and
Share Share Shareholders' Retained 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
2014 1,660,000 2,472,655 2,000,000 3,408,504 (31,384) (343,269) (620,706) 8,545,800 475,741 9,021,541
----------------- ------------- ------------- -------------- ------------- ------------ ------------ ------------ ------------- ---------------- -------------
------------ ------------ ------------ ------------ ---------- ----------- --------- ------------ --------- ------------
----------------- ------------- ------------- -------------- ------------- ------------ ------------ ------------ ------------- ---------------- -------------
Total
comprehensive
income for the
period:
----------------- ------------- ------------- -------------- ------------- ------------ ------------ ------------ ------------- ---------------- -------------
Profit for the
period - - - 340,910 - - - 340,910 40,439 381,349
----------------- ------------- ------------- -------------- ------------- ------------ ------------ ------------ ------------- ---------------- -------------
Total other
comprehensive
income, net of
tax - - - - (18,258) (20,080) 130,722 92,384 7,551 99,935
----------------- ------------- ------------- -------------- ------------- ------------ ------------ ------------ ------------- ---------------- -------------
---------- ---------- ---------- ---------- --------- -------- ---------- ---------- -------- ----------
----------------- ------------- ------------- -------------- ------------- ------------ ------------ ------------ ------------- ---------------- -------------
Total
comprehensive
income for the
period - - - 340,910 (18,258) (20,080) 130,722 433,294 47,990 481,284
----------------- ------------- ------------- -------------- ------------- ------------ ------------ ------------ ------------- ---------------- -------------
---------- ---------- ---------- ---------- --------- -------- ---------- ---------- -------- ----------
----------------- ------------- ------------- -------------- ------------- ------------ ------------ ------------ ------------- ---------------- -------------
Transactions
with
owners,
recognised
----------------- ------------- ------------- -------------- ------------- ------------ ------------ ------------ ------------- ---------------- -------------
directly in
equity
----------------- ------------- ------------- -------------- ------------- ------------ ------------ ------------ ------------- ---------------- -------------
Dividends paid
(refer
to note 14) - - - (190,900) - - - (190,900) - (190,900)
----------------- ------------- ------------- -------------- ------------- ------------ ------------ ------------ ------------- ---------------- -------------
Additional
contribution
by owners - - - - 12,729 - - 12,729 - 12,729
----------------- ------------- ------------- -------------- ------------- ------------ ------------ ------------ ------------- ---------------- -------------
---------- ---------- ---------- ----------- -------- ---------- -------- ---------- --------- ----------
----------------- ------------- ------------- -------------- ------------- ------------ ------------ ------------ ------------- ---------------- -------------
Total
transactions
with owners - - - (190,900) 12,729 - - (178,171) - (178,171)
----------------- ------------- ------------- -------------- ------------- ------------ ------------ ------------ ------------- ---------------- -------------
---------- ---------- ---------- ----------- -------- ---------- -------- ---------- --------- ----------
----------------- ------------- ------------- -------------- ------------- ------------ ------------ ------------ ------------- ---------------- -------------
Transactions
with
non-controlling
interests,
----------------- ------------- ------------- -------------- ------------- ------------ ------------ ------------ ------------- ---------------- -------------
recognised
directly
in equity
----------------- ------------- ------------- -------------- ------------- ------------ ------------ ------------ ------------- ---------------- -------------
Dividends paid - - - - - - - - (16,303) (16,303)
----------------- ------------- ------------- -------------- ------------- ------------ ------------ ------------ ------------- ---------------- -------------
Derecognition of
non-controlling
interests
on loss of
control - - - - - - - - (2,160) (2,160)
----------------- ------------- ------------- -------------- ------------- ------------ ------------ ------------ ------------- ---------------- -------------
---------- ---------- ---------- ---------- --------- ---------- ---------- ---------- --------- ---------
----------------- ------------- ------------- -------------- ------------- ------------ ------------ ------------ ------------- ---------------- -------------
Total
transactions
with
non-controlling
interests - - - - - - - - (18,463) (18,463)
----------------- ------------- ------------- -------------- ------------- ------------ ------------ ------------ ------------- ---------------- -------------
------------ ------------ ------------ ------------ --------- ---------- ---------- ------------ ---------- ------------
----------------- ------------- ------------- -------------- ------------- ------------ ------------ ------------ ------------- ---------------- -------------
Balance as at 30
June 2014 1,660,000 2,472,655 2,000,000 3,558,514 (36,913) (363,349) (489,984) 8,800,923 505,268 9,306,191
----------------- ------------- ------------- -------------- ------------- ------------ ------------ ------------ ------------- ---------------- -------------
======= ======= ======= ======= ===== ====== ====== ======= ====== =======
----------------- ------------- ------------- -------------- ------------- ------------ ------------ ------------ ------------- ---------------- -------------
The accompanying notes 1 to 21 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)
Attributable to equity holders of the Company
Hedging
and
Share Share Shareholders' Retained 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 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 21 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 2014
30 June 30 June
2014 2013
------------------------------------------ ----- ------------ ------------
Note USD'000 USD'000
------------------------------------------ ----- ------------ ------------
(Unaudited) (Unaudited)
------------------------------------------ ----- ------------ ------------
Cash flows from operating
activities
------------------------------------------ ----- ------------ ------------
Profit for the period 381,349 446,374
------------------------------------------ ----- ------------ ------------
Adjustments for:
------------------------------------------ ----- ------------ ------------
Depreciation and amortisation 205,384 197,285
------------------------------------------ ----- ------------ ------------
Share of profit from equity-accounted
investees, net of tax 7 (51,171) (48,891)
------------------------------------------ ----- ------------ ------------
Finance costs 185,540 191,432
------------------------------------------ ----- ------------ ------------
Income tax expense 60,187 46,659
------------------------------------------ ----- ------------ ------------
Gain/ (loss) on disposal
of property, plant and equipment 9 182 (677)
------------------------------------------ ----- ------------ ------------
Profit on sale and termination
of business 5 - (158,188)
------------------------------------------ ----- ------------ ------------
Finance income (45,463) (36,868)
------------------------------------------ ----- ------------ ------------
----------- -----------
------------------------------------------ ----- ------------ ------------
Gross cash flow from operations 736,008 637,126
------------------------------------------ ----- ------------ ------------
Change in inventories (4,845) 1,797
------------------------------------------ ----- ------------ ------------
Change in accounts receivable
and prepayments (54,481) 22,771
------------------------------------------ ----- ------------ ------------
Change in accounts payable
and accruals (45,135) (61,078)
------------------------------------------ ----- ------------ ------------
Changes in provisions, pension
and post-employment
benefits (12,847) (2,870)
------------------------------------------ ----- ------------ ------------
----------- -----------
------------------------------------------ ----- ------------ ------------
Cash generated from operating
activities 618,700 597,746
------------------------------------------ ----- ------------ ------------
Income taxes paid (68,014) (49,954)
------------------------------------------ ----- ------------ ------------
---------- ----------
------------------------------------------ ----- ------------ ------------
Net cash from operating activities 550,686 547,792
------------------------------------------ ----- ------------ ------------
---------- ----------
------------------------------------------ ----- ------------ ------------
Cash flows from investing
activities
------------------------------------------ ----- ------------ ------------
Additions to property, plant
and equipment 9 (329,447) (525,893)
------------------------------------------ ----- ------------ ------------
Additions to port concession
rights 10 (20,867) (17,760)
------------------------------------------ ----- ------------ ------------
Additions to other investments (10,000) -
------------------------------------------ ----- ------------ ------------
Proceeds from disposal of
property, plant and equipment 1,311 2,114
------------------------------------------ ----- ------------ ------------
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
------------------------------------------ ----- ------------ ------------
Net cash paid on acquisition
of a subsidiary (2,002) -
------------------------------------------ ----- ------------ ------------
Cash derecognised on loss
of control of a subsidiary (2,890) -
------------------------------------------ ----- ------------ ------------
Dividends received from equity-accounted
investees 53,669 45,163
------------------------------------------ ----- ------------ ------------
Additional investment in
equity-accounted investees (30,919) (7,615)
------------------------------------------ ----- ------------ ------------
Net loan repaid by equity-accounted
investees - 60,617
------------------------------------------ ----- ------------ ------------
Interest received 21,540 20,182
------------------------------------------ ----- ------------ ------------
----------- ----------
------------------------------------------ ----- ------------ ------------
Net cash (used in)/ from
investing activities (319,605) 251,633
------------------------------------------ ----- ------------ ------------
----------- ----------
------------------------------------------ ----- ------------ ------------
DP World Limited and its subsidiaries
Condensed consolidated statement of cash flows (continued)
for the six months ended 30 June 2014
30 June 30 June
2014 2013
---------------------------------------- ----- -------------- --------------
USD'000 USD'000
---------------------------------------- ----- -------------- --------------
Note (Unaudited) (Unaudited)
---------------------------------------- ----- -------------- --------------
Cash flows from financing
activities
---------------------------------------- ----- -------------- --------------
Repayment of interest bearing
loans and borrowings (148,540) (91,955)
---------------------------------------- ----- -------------- --------------
Drawdown of interest bearing
loans and borrowings 160,532 221,960
---------------------------------------- ----- -------------- --------------
Net proceeds from issuance
of convertible bonds 990,000 -
---------------------------------------- ----- -------------- --------------
Dividend paid to the owners
of the Company 14 (190,900) (199,200)
---------------------------------------- ----- -------------- --------------
Dividends paid to non-controlling
interests (16,303) (18,253)
---------------------------------------- ----- -------------- --------------
Interest paid (108,352) (115,399)
---------------------------------------- ----- -------------- --------------
------------ ------------
---------------------------------------- ----- -------------- --------------
Net cash from/ (used in) financing
activities 686,437 (202,847)
---------------------------------------- ----- -------------- --------------
------------ ------------
---------------------------------------- ----- -------------- --------------
Net increase in cash and cash
equivalents 917,518 596,578
---------------------------------------- ----- -------------- --------------
Cash and cash equivalents
as at 1 January 2,571,063 1,881,733
---------------------------------------- ----- -------------- --------------
Effect of exchange rate fluctuations
on cash held 4,028 (11,839)
---------------------------------------- ----- -------------- --------------
------------- -------------
---------------------------------------- ----- -------------- --------------
Cash and cash equivalents
as at 30 June 3,492,609 2,466,472
---------------------------------------- ----- -------------- --------------
======= =======
---------------------------------------- ----- -------------- --------------
Cash and cash equivalents
comprise the following:
---------------------------------------- ----- -------------- --------------
Bank balances and cash 3,492,609 2,468,137
---------------------------------------- ----- -------------- --------------
Bank overdrafts - (1,665)
---------------------------------------- ----- -------------- --------------
------------- -------------
---------------------------------------- ----- -------------- --------------
Cash and cash equivalents 3,492,609 2,466,472
---------------------------------------- ----- -------------- --------------
------------- -------------
---------------------------------------- ----- -------------- --------------
The accompanying notes 1 to 21 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 2014 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 2013.
The condensed consolidated interim financial statements were
approved by the Board of Directors on 28 August 2014.
3 Significant accounting policies
The accounting policies applied by the Group in these condensed
consolidated interim financial statements are the same as those
applied by the Group in its consolidated financial statements as at
and for the year ended 31 December 2013. New accounting policy in
respect of convertible bonds is as under:
Convertible bond
Convertible bonds issued by the Group are denominated in USD and
can be converted into ordinary shares. Convertible bonds are split
into two components: a debt component and a component representing
the embedded derivative in the convertible bond. The debt component
represents a liability for future coupon payments and the
redemption of the principal amount. The embedded derivative, a
financial liability, represents the value of the option that bond
holders can convert into ordinary shares.
DP World Limited and its subsidiaries
Notes to the condensed consolidated interim financial
statements
3 Significant accounting policies
Convertible bond (continued)
The debt component of convertible bond is initially recognised
at the fair value of a similar liability that does not have an
equity conversion option. Subsequent to initial recognition, the
debt component is measured at amortised cost using effective
interest rate method.
The embedded derivative is initially recognised at the
difference between the fair value of the convertible bond as a
whole and the fair value of the debt component (including
interest). Subsequent to initial recognition, the embedded
derivative component is re-measured at fair value at each reporting
date with the change in the fair value recognised in the
consolidated statement of profit or loss.
At inception, the net proceeds of the convertible issue are
split between the liability element and the derivative component,
representing the fair value of the embedded option to convert the
liability into equity of the Company. The latter has not been
recorded within equity due to the existence of cash settlement
terms within the bonds.
Any directly attributable transaction costs are allocated to the
debt component and the embedded derivative component in proportion
to their initial carrying amounts.
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 2013.
5 Separately disclosed items
Six months Six months
ended 30 ended 30
June 2014 June 2013
-------------------------------- ------------ ------------
USD '000 USD '000
-------------------------------- ------------ ------------
(Unaudited) (Unaudited)
-------------------------------- ------------ ------------
Restructuring costs - (2,280)
-------------------------------- ------------ ------------
Other income 9,153 -
-------------------------------- ------------ ------------
Profit on sale and termination
of business - 158,188
-------------------------------- ------------ ------------
Income tax expense - (4,900)
-------------------------------- ------------ ------------
---------- ----------
-------------------------------- ------------ ------------
9,153 151,008
-------------------------------- ------------ ------------
====== ======
-------------------------------- ------------ ------------
Restructuring costs: Nil (2013: relates to the restructuring of
subsidiaries in the 'Middle East, Europe and Africa' region and in
the 'Asia Pacific and Indian subcontinent' region).
Other income represents the re-measurement of the contingent
consideration at the date of final settlement relating to the
acquisition of additional interest in a subsidiary, in 2012, in the
'Middle East, Europe and Africa' region. (2013:Nil)
Profit on sale and termination of business: Nil (2013
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.)
Income tax expense: Nil (2013: relates to the restructuring of
subsidiaries in the 'Asia Pacific and Indian subcontinent'
region).
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 the 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 Middle East,
and Indian Australia Europe and
subcontinent and Americas Africa Head office Inter-segment Total
------------ -------------------------- -------------------------- -------------------------- -------------------------- -------------------------- --------------------------
Six months Six months Six months Six months
ended 30 Six months Six months ended 30 ended 30 ended 30
June ended 30 June ended 30 June June June June
------------ -------------------------- -------------------------- -------------------------- -------------------------- -------------------------- --------------------------
2014 2013 2014 2013 2014 2013 2014 2013 2014 2013 2014 2013
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
USD'000 USD'000 USD'000 USD'000 USD'000 USD'000 USD'000 USD'000 USD'000 USD'000 USD'000 USD'000
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
(Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited)
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
Revenue
from
operations 190,204 192,321 311,785 291,688 1,156,964 1,025,400 - - - - 1,658,953 1,509,409
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
====== ====== ====== ====== ======= ======= ===== ===== === === ======= =======
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
Segment
results
from
operations
** 94,411 230,081 87,096 71,533 482,962 399,455 (143,043) (100,131) - - 521,426 600,938
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
Finance
income - - - - - - 45,463 36,868 - - 45,463 36,868
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
Finance
cost - - - - - - (185,540) (191,432) - - (185,540) (191,432)
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
--------- --------- --------- --------- ---------- ---------- ---------- ---------- ----- ----- ----------- -----------
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
Profit/
(loss)
for
the
period 94,411 230,081 87,096 71,533 482,962 399,455 (283,120) (254,695) - - 381,349 446,374
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
====== ====== ===== ===== ====== ====== ====== ====== === === ====== ======
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
** 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 Middle East,
and Indian Australia Europe and
subcontinent and Americas Africa Head office Inter-segment Total
------------- -------------------------- ------------------------- ---------------------------- ------------------------------ --------------------------- ----------------------------
As at As at As at As at As at As at
------------- -------------------------- ------------------------- ---------------------------- ------------------------------ --------------------------- ----------------------------
30 31 30 30
June 31 December 30 June December 30 June 31 December June 31 December 30 June 31 December June 31 December
------------- ------------ ------------ ------------ ----------- ------------- ------------- -------------- -------------- ------------- ------------ ------------- -------------
2014 2013 2014 2013 2014 2013 2014 2013 2014 2013 2014 2013
------------- ------------ ------------ ------------ ----------- ------------- ------------- -------------- -------------- ------------- ------------ ------------- -------------
USD'000 USD'000 USD'000 USD'000 USD'000 USD'000 USD'000 USD'000 USD'000 USD'000 USD'000 USD'000
------------- ------------ ------------ ------------ ----------- ------------- ------------- -------------- -------------- ------------- ------------ ------------- -------------
(Unaudited) (audited) (Unaudited) (audited) (Unaudited) (audited) (Unaudited) (audited) (Unaudited) (audited) (Unaudited) (audited)
------------- ------------ ------------ ------------ ----------- ------------- ------------- -------------- -------------- ------------- ------------ ------------- -------------
Segment
assets 3,950,617 3,827,246 1,724,324 1,737,515 10,703,572 9,654,817 11,881,980 9,371,725 (10,135,158) (7,830,789) 18,125,335 16,760,514
------------- ------------ ------------ ------------ ----------- ------------- ------------- -------------- -------------- ------------- ------------ ------------- -------------
======= ======= ======= ======= ======= ======= ======= ======= ======= ======= ======== =======
------------- ------------ ------------ ------------ ----------- ------------- ------------- -------------- -------------- ------------- ------------ ------------- -------------
Segment
liabilities 309,876 237,295 220,318 89,632 2,991,720 1,586,005 7,378,488 5,605,650 (3,228,553) (925,542) 7,671,849 6,593,040
------------- ------------ ------------ ------------ ----------- ------------- ------------- -------------- -------------- ------------- ------------ ------------- -------------
Tax
liabilities
** - - - - - - 1,147,295 1,145,933 - - 1,147,295 1,145,933
------------- ------------ ------------ ------------ ----------- ------------- ------------- -------------- -------------- ------------- ------------ ------------- -------------
---------- ---------- ----------- ---------- ------------ ------------ ------------- ------------- ----------- ---------- ------------ ------------
------------- ------------ ------------ ------------ ----------- ------------- ------------- -------------- -------------- ------------- ------------ ------------- -------------
Total
liabilities 309,876 237,295 220,318 89,632 2,991,720 1,586,005 8,525,783 6,751,583 (3,228,553) (925,542) 8,819,144 7,738,973
------------- ------------ ------------ ------------ ----------- ------------- ------------- -------------- -------------- ------------- ------------ ------------- -------------
====== ====== ====== ====== ======= ======= ======= ======= ======= ====== ======= =======
------------- ------------ ------------ ------------ ----------- ------------- ------------- -------------- -------------- ------------- ------------ ------------- -------------
Asia Pacific Middle East,
and Indian Australia Europe and
subcontinent and Americas Africa Head office Inter-segment Total
------------------ -------------------------- -------------------------- -------------------------- -------------------------- -------------------------- --------------------------
Six months Six months Six months
ended 30 Six months Six months ended 30 Six months ended 30
June ended 30 June ended 30 June June ended 30 June June
------------------ -------------------------- -------------------------- -------------------------- -------------------------- -------------------------- --------------------------
2014 2013 2014 2013 2014 2013 2014 2013 2014 2013 2014 2013
------------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
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 6,814 9,746 24,315 35,942 318,071 496,892 1,114 1,073 - - 350,314 543,653
------------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
==== ==== ===== ====== ====== ====== ==== ==== == == ====== ======
------------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
Depreciation 12,721 15,000 28,375 29,873 104,864 89,162 2,832 2,250 - - 148,792 136,285
------------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
===== ===== ===== ===== ===== ====== ==== ==== == == ===== ======
------------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
Amortisation 22,956 27,816 6,038 5,991 27,598 27,193 - - - - 56,592 61,000
------------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
===== ===== ==== ===== ===== ====== ==== ==== == == ===== ======
------------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
Share of
profit/
(loss)
of
equity-accounted
investees
before
separately
disclosed
items 53,564 52,656 (9,545) (4,048) 7,152 283 - - - - 51,171 48,891
------------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
===== ===== ==== ==== ==== ==== ===== ===== == == ===== =====
------------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
Tax expense
** - - - - - - 60,187 46,659 - - 60,187 46,659
------------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
===== ===== ===== ==== ==== ==== ===== ===== == == ===== =====
------------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
** 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 Middle East,
and Indian Australia Europe and
subcontinent and Americas Africa Head office Inter-segment Total
-------------- -------------------------- -------------------------- -------------------------- -------------------------- -------------------------- --------------------------
Six months Six months Six months Six months Six months Six months
ended 30 ended 30 ended 30 June ended 30 June ended 30 June ended 30 June
June June
-------------- -------------------------- -------------------------- -------------------------- -------------------------- -------------------------- --------------------------
2014 2013 2014 2013 2014 2013 2014 2013 2014 2013 2014 2013
-------------- ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
USD'000 USD'000 USD'000 USD'000 USD'000 USD'000 USD'000 USD'000 USD'000 USD'000 USD'000 USD'000
-------------- ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
(Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited)
-------------- ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
Revenue
before
separately
disclosed
items 190,204 192,321 311,785 291,688 1,156,964 1,025,400 - - - - 1,658,953 1,509,409
-------------- ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
====== ====== ====== ====== ======= ======= ===== ===== ====== ====== ======= =======
-------------- ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
Adjusted
EBITDA 130,088 121,773 121,509 99,613 606,271 515,810 (80,024) (48,222) - - 777,844 688,974
-------------- ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
Finance
income - - - - - - 45,463 36,868 - - 45,463 36,868
-------------- ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
Finance
costs - - - - - - (185,540) (191,432) - - (185,540) (191,432)
-------------- ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
Tax expense - - - - - - (60,187) (41,759) - - (60,187) (41,759)
-------------- ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
Depreciation
and
amortisation (35,677) (42,816) (34,413) (35,864) (132,462) (116,355) (2,832) (2,250) - - (205,384) (197,285)
-------------- ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
--------- --------- --------- --------- ---------- ---------- -------- -------- --------- --------- ----------- -----------
-------------- ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
Adjusted
net
profit/
(loss)
for
the
period
before
separately
disclosed
items 94,411 78,957 87,096 63,749 473,809 399,455 (283,120) (246,795) - - 372,196 295,366
-------------- ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
Adjusted
for
separately
disclosed
items - 151,124 - 7,784 9,153 - - (7,900) - - 9,153 151,008
-------------- ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
---------- ---------- --------- --------- ---------- ---------- --------- --------- ------- ------- ---------- ----------
-------------- ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
Profit/
(loss)
for
the
period 94,411 230,081 87,096 71,533 482,962 399,455 (283,120) (254,695) - - 381,349 446,374
-------------- ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
====== ====== ===== ===== ====== ====== ====== ====== ==== ==== ====== ======
-------------- ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
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 Australia and Middle East,
Indian sub-continent Americas Europe and Africa Total
------------- ------------------------------ ------------------------------ ------------------------------ ----------------------------------
30 June 31 December 30 June 31 December 30 June 31 December 30 June 31 December
------------- -------------- -------------- -------------- -------------- -------------- -------------- ---------------- ----------------
2014 2013 2014 2013 2014 2013 2014 2013
------------- -------------- -------------- -------------- -------------- -------------- -------------- ---------------- ----------------
USD'000 USD'000 USD'000 USD'000 USD'000 USD'000 USD'000 USD'000
------------- -------------- -------------- -------------- -------------- -------------- -------------- ---------------- ----------------
(Unaudited) (Audited) (Unaudited) (Audited) (Unaudited) (Audited) (Unaudited) (Audited)
------------- -------------- -------------- -------------- -------------- -------------- -------------- ---------------- ----------------
Cash and
cash
equivalents 298,916 350,997 142,759 105,483 209,404 204,675 651,079 661,155
------------- -------------- -------------- -------------- -------------- -------------- -------------- ---------------- ----------------
Current
assets 199,495 185,851 115,908 137,905 195,169 176,657 510,572 500,413
------------- -------------- -------------- -------------- -------------- -------------- -------------- ---------------- ----------------
Non-current
assets 9,258,662 9,395,336 2,920,781 2,802,062 2,726,824 2,651,225 14,906,267 14,848,623
------------- -------------- -------------- -------------- -------------- -------------- -------------- ---------------- ----------------
------------- ------------- ------------- ------------- ------------- ------------- --------------- ---------------
------------- -------------- -------------- -------------- -------------- -------------- -------------- ---------------- ----------------
Total assets 9,757,073 9,932,184 3,179,448 3,045,450 3,131,397 3,032,557 16,067,918 16,010,191
------------- -------------- -------------- -------------- -------------- -------------- -------------- ---------------- ----------------
======= ======= ======= ======= ======= ======= ======== ========
------------- -------------- -------------- -------------- -------------- -------------- -------------- ---------------- ----------------
Current
financial
liabilities 60,441 89,567 60,135 31,599 23,763 38,253 144,339 159,419
------------- -------------- -------------- -------------- -------------- -------------- -------------- ---------------- ----------------
Other
current
liabilities 518,438 627,011 183,958 184,462 196,330 197,706 898,726 1,009,179
------------- -------------- -------------- -------------- -------------- -------------- -------------- ---------------- ----------------
Non-current
financial
liabilities 1,359,578 1,432,290 1,815,461 1,710,022 747,082 677,990 3,922,121 3,820,302
------------- -------------- -------------- -------------- -------------- -------------- -------------- ---------------- ----------------
Other
non-current
liabilities 611,963 625,330 126,112 111,826 442,792 422,176 1,180,867 1,159,332
------------- -------------- -------------- -------------- -------------- -------------- -------------- ---------------- ----------------
------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
------------- -------------- -------------- -------------- -------------- -------------- -------------- ---------------- ----------------
Total
liabilities 2,550,420 2,774,198 2,185,666 2,037,909 1,409,967 1,336,125 6,146,053 6,148,232
------------- -------------- -------------- -------------- -------------- -------------- -------------- ---------------- ----------------
======= ======= ======= ======= ======= ======= ======= =======
------------- -------------- -------------- -------------- -------------- -------------- -------------- ---------------- ----------------
------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
------------- -------------- -------------- -------------- -------------- -------------- -------------- ---------------- ----------------
7,206,653 7,157,986 993,782 1,007,541 1,721,430 1,696,432 9,921,865 9,861,959
------------- -------------- -------------- -------------- -------------- -------------- -------------- ---------------- ----------------
======= ======= ======= ======= ======= ======= ======= =======
------------- -------------- -------------- -------------- -------------- -------------- -------------- ---------------- ----------------
The Group's investment in net assets of equity-accounted
investees 2,726,344 2,700,703
------------------------------------------------------------------------------------------------------------- ---------------- ----------------
======= =======
------------- -------------- -------------- -------------- -------------- -------------- -------------- ---------------- ----------------
7 Investment in equity-accounted investees (continued)
Asia Pacific and Australia and Middle East,
Indian sub-continent Americas Europe and Africa Total
--------------- -------------------------- -------------------------- -------------------------- ---------------------------
Six months ended Six months ended Six months ended Six months ended
30 June 30 June 30 June 30 June
--------------- -------------------------- -------------------------- -------------------------- ---------------------------
2014 2013 2014 2013 2014 2013 2014 2013
--------------- ------------ ------------ ------------ ------------ ------------ ------------ ------------ -------------
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 749,872 633,563 339,847 333,196 284,368 250,666 1,374,087 1,217,425
--------------- ------------ ------------ ------------ ------------ ------------ ------------ ------------ -------------
Other expenses (318,981) (282,697) (258,677) (254,327) (215,013) (196,550) (792,671) (733,574)
--------------- ------------ ------------ ------------ ------------ ------------ ------------ ------------ -------------
Depreciation
and
amortisation (150,926) (148,687) (77,687) (49,373) (35,947) (34,018) (264,560) (232,078)
--------------- ------------ ------------ ------------ ------------ ------------ ------------ ------------ -------------
Finance
expense (57,653) (48,595) (101,596) (67,884) (14,115) (13,144) (173,364) (129,623)
--------------- ------------ ------------ ------------ ------------ ------------ ------------ ------------ -------------
Finance income 26,177 20,425 36,173 3,235 2,020 844 64,370 24,504
--------------- ------------ ------------ ------------ ------------ ------------ ------------ ------------ -------------
Income tax
expense (59,123) (46,243) 13,004 6,891 (4,421) (2,002) (50,540) (41,354)
--------------- ------------ ------------ ------------ ------------ ------------ ------------ ------------ -------------
----------- ----------- ----------- ----------- ---------- ---------- ----------- ------------
--------------- ------------ ------------ ------------ ------------ ------------ ------------ ------------ -------------
Net
profit/(loss) 189,366 127,766 (48,936) (28,262) 16,892 5,796 157,322 105,300
--------------- ------------ ------------ ------------ ------------ ------------ ------------ ------------ -------------
====== ====== ===== ====== ===== ==== ====== ======
--------------- ------------ ------------ ------------ ------------ ------------ ------------ ------------ -------------
Group's share of profit (before separately disclosed items) 51,171 48,891
--------------------------------------------------------------------------------------------------- ------------ -------------
===== =====
--------------- ------------ ------------ ------------ ------------ ------------ ------------ ------------ -------------
Group's share of other comprehensive (loss)/ income (6,634) 6,826
--------------------------------------------------------------------------------------------------- ------------ -------------
===== =====
--------------- ------------ ------------ ------------ ------------ ------------ ------------ ------------ -------------
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 2014 30 June
2013
--------------------------------- ------------- ------------
(Unaudited) (Unaudited)
--------------------------------- ------------- ------------
Before separately disclosed
items 17.40% 16.53%
--------------------------------- ------------- ------------
Including separately disclosed
items 17.06% 18.03%
--------------------------------- ------------- ------------
====== ======
--------------------------------- ------------- ------------
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 2014, the Group
acquired assets amounting to USD 329,447 thousand (30 June 2013:
USD 525,893 thousand). The de-recognition of assets on account of
loss of control of a subsidiary was USD 272 thousand (30 June 2013:
39,567 thousand).
The depreciation on property, plant and equipment during the six
months period ended 30 June 2014 amounted to USD 148,792 thousand
(30 June 2013: USD 136,285 thousand).
Assets with a net carrying amount of USD 1,493 thousand were
disposed by the Group during the six months ended 30 June 2014 (30
June 2013: USD 1,437 thousand), resulting in a gain on disposal of
USD 182 thousand (30 June 2013: gain of USD 677 thousand).
10 Goodwill and port concession rights
Goodwill
During the six months period ended 30 June 2014, the reduction
in goodwill represents the impact of foreign currency translation
of USD 39,071 thousand (30 June 2013: USD 90,735 thousand) and
de-recognition on account of disposal of subsidiary of USD Nil (30
June 2013: 34,880 thousand).
Port concession rights
During the six months period ended 30 June 2014, the Group
acquired port concession rights amounting to USD 20,867 thousand
(30 June 2013: USD 17,760 thousand). The de-recognition of port
concession rights on account of disposal of subsidiary was USD Nil
(30 June 2013: 22,579 thousand).
The amortization of port concession rights during the six months
period ended 30 June 2014 amounted to USD 56,592 thousand (30 June
2013: USD 61,000 thousand).
11 Bank balances and cash
30 June 2014 31 December
2013
--------------------------- -------------- -------------
USD'000 USD'000
--------------------------- -------------- -------------
(Unaudited) (Audited)
--------------------------- -------------- -------------
Cash at banks and in
hand 503,643 368,830
--------------------------- -------------- -------------
Short-term deposits 2,936,881 2,151,205
--------------------------- -------------- -------------
Deposits under lien 52,085 52,435
--------------------------- -------------- -------------
------------- ------------
--------------------------- -------------- -------------
Bank balances and cash 3,492,609 2,572,470
--------------------------- -------------- -------------
Bank overdrafts - (1,407)
--------------------------- -------------- -------------
------------- ------------
--------------------------- -------------- -------------
Cash and cash equivalents 3,492,609 2,571,063
--------------------------- -------------- -------------
======= =======
--------------------------- -------------- -------------
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 2014 31 December
2013
--------------------------- ---------------------------- ----------------------------
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 62,495 62,495 52,716 52,716
--------------------------- ------------- ------------- ------------- -------------
Interest rate swaps 268 268 1,685 1,685
--------------------------- ------------- ------------- ------------- -------------
--------- --------- --------- ---------
--------------------------- ------------- ------------- ------------- -------------
62,763 62,763 54,401 54,401
--------------------------- ------------- ------------- ------------- -------------
===== ===== ===== =====
--------------------------- ------------- ------------- ------------- -------------
Assets carried at
amortised cost
--------------------------- ------------- ------------- ------------- -------------
Debt securities held
to maturity 10,212 10,097 10,207 10,110
--------------------------- ------------- ------------- ------------- -------------
Loans and receivables 708,050 708,050 669,405 669,405
--------------------------- ------------- ------------- ------------- -------------
Cash and cash equivalents 3,492,609 3,492,609 2,572,470 2,572,470
--------------------------- ------------- ------------- ------------- -------------
------------ ------------ ------------ ------------
--------------------------- ------------- ------------- ------------- -------------
4,210,871 4,210,756 3,252,082 3,251,985
--------------------------- ------------- ------------- ------------- -------------
======= ======= ======= =======
--------------------------- ------------- ------------- ------------- -------------
12 Fair values (continued)
Fair values versus carrying amounts (continued)
30 June 2014 31 December
2013
---------------------------------- ------------------------------ ------------------------------
Carrying Fair Carrying Fair
---------------------------------- -------------- -------------- -------------- --------------
amount value amount value
---------------------------------- -------------- -------------- -------------- --------------
USD'000 USD'000 USD'000 USD'000
---------------------------------- -------------- -------------- -------------- --------------
Liabilities carried at
fair values
---------------------------------- -------------- -------------- -------------- --------------
Interest rate swaps (63,267) (63,267) (51,953) (51,953)
---------------------------------- -------------- -------------- -------------- --------------
Forward exchange contracts (178) (178) (418) (418)
---------------------------------- -------------- -------------- -------------- --------------
Embedded derivative- convertible
share option (226,925) (226,925) - -
---------------------------------- -------------- -------------- -------------- --------------
--------- --------- --------- ---------
---------------------------------- -------------- -------------- -------------- --------------
(290,370) (290,370) (52,371) (52,371)
---------------------------------- -------------- -------------- -------------- --------------
===== ===== ===== ======
---------------------------------- -------------- -------------- -------------- --------------
Liabilities carried at
amortised cost
---------------------------------- -------------- -------------- -------------- --------------
Secured bank loans * (1,337,691) (1,337,691) (1,258,822) (1,258,822)
---------------------------------- -------------- -------------- -------------- --------------
Mortgage debenture stocks (2,429) (2,810) (2,355) (2,458)
---------------------------------- -------------- -------------- -------------- --------------
Unsecured bond issues (3,240,354) (3,617,586) (3,239,277) (3,378,952)
---------------------------------- -------------- -------------- -------------- --------------
Convertible bonds (758,284) (779,492) - -
---------------------------------- -------------- -------------- -------------- --------------
Unsecured loan stock (3,867) (3,867) (9,266) (9,266)
---------------------------------- -------------- -------------- -------------- --------------
Finance lease liabilities (28,085) (28,085) (26,867) (26,867)
---------------------------------- -------------- -------------- -------------- --------------
Unsecured bank and other
loans * (457,405) (457,405) (498,430) (498,430)
---------------------------------- -------------- -------------- -------------- --------------
Trade and other payables (1,210,132) (1,210,132) (1,200,037) (1,200,037)
---------------------------------- -------------- -------------- -------------- --------------
Bank overdraft - - (1,407) (1,407)
---------------------------------- -------------- -------------- -------------- --------------
------------- ------------- ------------- -------------
---------------------------------- -------------- -------------- -------------- --------------
(7,038,247) (7,437,068) (6,236,461) (6,376,239)
---------------------------------- -------------- -------------- -------------- --------------
======= ======= ======= ========
---------------------------------- -------------- -------------- -------------- --------------
* 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 assets and liabilities that require or
permits fair value measurements or disclosure about fair value
measurements. It doesn't include fair value information for
financial assets and liabilities not measured at fair value if the
carrying amount is a reasonable approximation of fair value. 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)
12 Fair values (continued)
Level Level Level
1 2 3
------------------------------------ -------------- ------------ --------
USD'000 USD'000 USD'000
------------------------------------ -------------- ------------ --------
30 June 2014
------------------------------------ -------------- ------------ --------
Available-for-sale financial
assets 9,202 53,293 -
------------------------------------ -------------- ------------ --------
Debt securities held to - 10,097 -
maturity
------------------------------------ -------------- ------------ --------
Derivative financial assets - 268 -
------------------------------------ -------------- ------------ --------
Derivative financial liabilities - (63,445) -
------------------------------------ -------------- ------------ --------
Embedded derivative in convertible (226,925) -
bond*
------------------------------------ -------------- ------------ --------
Mortgage debenture stocks - (2,810) -
------------------------------------ -------------- ------------ --------
Unsecured bond issues (3,617,586) - -
------------------------------------ -------------- ------------ --------
Convertible bonds (779,492) - -
------------------------------------ -------------- ------------ --------
------------- ----------- ---
------------------------------------ -------------- ------------ --------
(4,387,876) (229,522) -
------------------------------------ -------------- ------------ --------
======= ====== ==
------------------------------------ -------------- ------------ --------
31 December 2013
------------------------------------ -------------- ------------ --------
Available-for-sale financial - 52,716 -
assets
------------------------------------ -------------- ------------ --------
Debt securities held to - 10,110 -
maturity
------------------------------------ -------------- ------------ --------
Derivative financial assets - 1,685 -
------------------------------------ -------------- ------------ --------
Derivative financial liabilities - (52,371) -
------------------------------------ -------------- ------------ --------
Mortgage debenture stocks - (2,458) -
------------------------------------ -------------- ------------ --------
Unsecured bond issues (3,378,952) - -
------------------------------------ -------------- ------------ --------
------------- ------- ----
------------------------------------ -------------- ------------ --------
(3,378,952) 9,682 -
------------------------------------ -------------- ------------ --------
======= ==== ==
------------------------------------ -------------- ------------ --------
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 2013.
* The fair value of the embedded derivative liability of
convertible bond has been calculated using the Black-Scholes model
with market assumptions.
13 Share capital
The share capital of the Company is as follows:
30 June 31 December
2014 2013
----------------------------- ------------ ------------
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 2013 amounting to USD 190,900 thousand was
paid during the period ended 30 June 2014 (30 June 2013: USD
199,200 thousand).
15 Earnings per share
(a) Basic earnings per share
30 June 2014 30 June 2013
--------------------------------- ------------- -------------
USD'000 USD'000
--------------------------------- ------------- -------------
(Unaudited) (Unaudited)
--------------------------------- ------------- -------------
Profit attributable to
the ordinary shareholders
of the Company (before
separately disclosed
items) - (a) 331,757 263,729
--------------------------------- ------------- -------------
Profit attributable to
the ordinary shareholders
of the Company (after
separately disclosed
items) - (b) 340,910 398,087
--------------------------------- ------------- -------------
======= =======
--------------------------------- ------------- -------------
Number of Number of
shares shares
--------------------------------- ------------- -------------
Weighted average number
of ordinary shares outstanding
as at - (c) 830,000 830,000
--------------------------------- ------------- -------------
====== =======
--------------------------------- ------------- -------------
Basic earnings per share
(before separately disclosed
items) - (a/c) 39.97 31.77
--------------------------------- ------------- -------------
Basic earnings per share
(after separately disclosed
items) - (b/c) 41.07 47.96
--------------------------------- ------------- -------------
15 Earnings per share (continued)
(b) Diluted earnings per share
The calculation of diluted earnings per share has been based on
the following profit attributable to ordinary shareholders and
weighted-average number of ordinary shares outstanding after
adjustment for the effects of all dilutive potential ordinary
shares arising from the convertible bond (refer to note 16) as at
the reporting date. The convertible bonds were issued on 19 June
2014 and accordingly there is no dilution and impact on the
comparative earnings per share.
30 June 2014 30 June 2013
----------------------------------- ------------- -------------
USD'000 USD'000
----------------------------------- ------------- -------------
(Unaudited) (Unaudited)
----------------------------------- ------------- -------------
Profit attributable to
the ordinary shareholders
of the Company (basic)
(before separately disclosed
items) 331,757 263,729
----------------------------------- ------------- -------------
Interest expense on convertible 575 -
bonds
----------------------------------- ------------- -------------
Profit attributable to
the ordinary shareholders
of the Company (basic)
(before separately disclosed
items) - (d) 332,332 263,729
----------------------------------- ------------- -------------
======= =======
----------------------------------- ------------- -------------
Profit attributable to
the ordinary shareholders
of the Company (basic)
(after separately disclosed
items) 340,910 398,087
----------------------------------- ------------- -------------
Interest expense on convertible 575 -
bonds
----------------------------------- ------------- -------------
Profit attributable to
the ordinary shareholders
of the Company (basic)
(after separately disclosed
items) - (e) 341,485 398,087
----------------------------------- ------------- -------------
====== ======
----------------------------------- ------------- -------------
Number of Number of
shares shares
----------------------------------- ------------- -------------
Weighted average number
of basic shares outstanding
as at 830,000 830,000
----------------------------------- ------------- -------------
Weighted numbers of shares
due to conversion of
convertible bond 2,443
----------------------------------- ------------- -------------
Total weighted number
of ordinary share (diluted)
outstanding as at - (f) 832,443 830,000
----------------------------------- ------------- -------------
====== ======
----------------------------------- ------------- -------------
Diluted earnings per
share (before separately
disclosed items) - (d/f) 39.92 31.77
----------------------------------- ------------- -------------
Diluted earnings per
share (before separately
disclosed items) - (e/f) 41.02 47.96
----------------------------------- ------------- -------------
16 Interest bearing loans and borrowings
The Group's interest bearing loans and borrowings are as
follows:
30 June 31 December
2014 2013
--------------------------- ------------- -------------
USD'000 USD'000
--------------------------- ------------- -------------
(Unaudited) (Audited)
--------------------------- ------------- -------------
Non-current liabilities
--------------------------- ------------- -------------
Secured bank loans 1,226,930 1,056,613
--------------------------- ------------- -------------
Mortgage debenture stocks 2,429 2,355
--------------------------- ------------- -------------
Unsecured loan stock - 5,399
--------------------------- ------------- -------------
Unsecured bank loans 435,767 455,544
--------------------------- ------------- -------------
Unsecured bond issues 3,240,354 3,239,277
--------------------------- ------------- -------------
Convertible bond * 758,284 -
--------------------------- ------------- -------------
Finance lease liabilities 20,126 17,502
--------------------------- ------------- -------------
------------ ------------
--------------------------- ------------- -------------
5,683,890 4,776,690
--------------------------- ------------- -------------
------------ ------------
--------------------------- ------------- -------------
Current liabilities
--------------------------- ------------- -------------
Secured bank loans 110,761 202,209
--------------------------- ------------- -------------
Unsecured bank loans 21,638 42,886
--------------------------- ------------- -------------
Unsecured loans 3,867 3,867
--------------------------- ------------- -------------
Finance lease liabilities 7,959 9,365
--------------------------- ------------- -------------
---------- ----------
--------------------------- ------------- -------------
144,225 258,327
--------------------------- ------------- -------------
------------ ------------
--------------------------- ------------- -------------
Total 5,828,115 5,035,017
--------------------------- ------------- -------------
======= =======
--------------------------- ------------- -------------
* On 19 June 2014, the Group issued 10 year USD 1,000,000
thousand senior unsecured convertible bonds convertible into 36.85
million ordinary shares of DP World Limited. These bonds are
currently listed on the Frankfurt Stock Exchange with a coupon rate
of 1.75% per annum. These bonds include investor put option which
can be exercised at par in June 2018 and in June 2021. There is
also an issuer call option which can be exercised in July 2017,
subject to a 130% trigger on the conversion price of USD 27.14.
17 Transactions with related parties
Transactions with related parties included in the condensed
consolidated interim financial statements are as follows:
30 June
2014
----------------------------- ------------- ----------------- -------------- ------------
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 - - 77 77
----------------------------- ------------- ----------------- -------------- ------------
Other recharges - - 16,388 16,388
----------------------------- ------------- ----------------- -------------- ------------
Revenue earned
from related
parties
----------------------------- ------------- ----------------- -------------- ------------
Management fee
income - 10,403 - 10,403
----------------------------- ------------- ----------------- -------------- ------------
Interest Income - 8,920 - 8,920
----------------------------- ------------- ----------------- -------------- ------------
=== ===== === =====
------------------------------------------- ----------------- -------------- ------------
On 21 June 2014, the Group acquired 100% interest in Dubai Trade
FZE for a total consideration of USD 9,500 thousand (cash acquired
on acquisition USD 7,498 thousand) from Port & Free Zone World
FZE.
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
-------------------------- ------------- ----------------- -------------- ------------
Interest Income - 9,901 9,901
-------------------------- ------------- ----------------- -------------- ------------
=== ===== === =====
---------------------------------------- ----------------- -------------- ------------
17 Transactions with related parties (continued)
.
Balances with related parties included in the condensed
consolidated interim statement of financial position are as
follows:
30 June 31 December
2014 2013
---------------------------- ------------ ------------
USD'000 USD'000
---------------------------- ------------ ------------
Due from related parties: (Unaudited) (Audited)
---------------------------- ------------ ------------
Ultimate Parent Company 2,175 2,114
---------------------------- ------------ ------------
Parent Company 53,559 54,304
---------------------------- ------------ ------------
Equity-accounted investees 154,710 145,755
---------------------------- ------------ ------------
Other related parties 19,629 24,382
---------------------------- ------------ ------------
---------- ----------
---------------------------- ------------ ------------
230,073 226,555
---------------------------- ------------ ------------
====== ======
---------------------------- ------------ ------------
30 June 31 December
2014 2013
---------------------------- ------------ ------------
USD'000 USD'000
---------------------------- ------------ ------------
Due to related parties: (Unaudited) (Audited)
---------------------------- ------------ ------------
Ultimate Parent Company 5 377
---------------------------- ------------ ------------
Equity-accounted investees 492 57
---------------------------- ------------ ------------
Other related parties 4,196 7,739
---------------------------- ------------ ------------
------- --------
---------------------------- ------------ ------------
4,693 8,173
---------------------------- ------------ ------------
==== =====
---------------------------- ------------ ------------
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
ended ended
-------------------------- ------------- -------------
30 June 2014 30 June 2013
-------------------------- ------------- -------------
USD'000 USD'000
-------------------------- ------------- -------------
Short-term benefits and
bonus 7,238 6,642
-------------------------- ------------- -------------
Post-retirement benefits 382 360
-------------------------- ------------- -------------
------- -------
-------------------------- ------------- -------------
7,620 7,002
-------------------------- ------------- -------------
==== ====
-------------------------- ------------- -------------
18 Operating leases
Operating lease commitments - Group as a lessee
Future minimum rentals payable under non-cancellable operating
leases are as follows:
30 June 31 December
2014 2013
----------------------------- ------------- -------------
USD'000 USD'000
----------------------------- ------------- -------------
(Unaudited) (Audited)
----------------------------- ------------- -------------
Within one year 323,116 290,998
----------------------------- ------------- -------------
Between one and five years 1,303,707 1,115,598
----------------------------- ------------- -------------
Between five to ten years 1,285,802 1,254,322
----------------------------- ------------- -------------
Between ten to twenty years 1,605,413 1,499,439
----------------------------- ------------- -------------
Between twenty to thirty
years 966,997 981,565
----------------------------- ------------- -------------
Between thirty to fifty
years 1,157,417 1,198,978
----------------------------- ------------- -------------
Between fifty to seventy
years 960,654 923,174
----------------------------- ------------- -------------
More than seventy years 892,035 983,526
----------------------------- ------------- -------------
------------ ------------
----------------------------- ------------- -------------
8,495,141 8,247,600
----------------------------- ------------- -------------
======= ========
----------------------------- ------------- -------------
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.
18 Operating leases
Operating lease commitments - Group as a lessor
Future minimum rentals receivable under non-cancellable
operating leases are as follows:
30 June 31 December
2014 2013
--------------------------- ------------ ------------
USD'000 USD'000
--------------------------- ------------ ------------
(Unaudited) (Audited)
--------------------------- ------------ ------------
Within one year 28,268 25,567
--------------------------- ------------ ------------
Between one to five years 64,567 68,817
--------------------------- ------------ ------------
More than five years 22,639 23,536
--------------------------- ------------ ------------
---------- ----------
--------------------------- ------------ ------------
115,474 117,920
--------------------------- ------------ ------------
====== ======
--------------------------- ------------ ------------
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.
19 Capital commitments
30 June 31 December
2014 2013
------------------------------- ------------ ------------
USD'000 USD'000
------------------------------- ------------ ------------
(Unaudited) (Audited)
------------------------------- ------------ ------------
Estimated capital expenditure
contracted for as at
the reporting date 379,464 788,972
------------------------------- ------------ ------------
====== =======
------------------------------- ------------ ------------
20 Contingent liabilities
(a) The Group has the following contingent liabilities in respect of guarantees issued:
30 June 31 December
2014 2013
-------------------------------- ------------ ------------
Type of guarantee USD'000 USD'000
-------------------------------- ------------ ------------
(Unaudited) (Audited)
-------------------------------- ------------ ------------
Payment guarantees 22,940 21,651
-------------------------------- ------------ ------------
Performance guarantees 205,052 212,192
-------------------------------- ------------ ------------
Letters of credit 2,720 1,590
-------------------------------- ------------ ------------
Guarantees issued on behalf
of equity-accounted investees 120,481 81,401
-------------------------------- ------------ ------------
====== ======
-------------------------------- ------------ ------------
(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 19,898 thousand (2013: USD 19,303 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 10,631 thousand (2013: USD 10,313 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 appealed against this
order and the appeal was upheld by Chennai High Court on 8 January
2014. CCTL lodged an appeal before the Division Bench of Chennai
High Court along with a stay petition on 31 January 2014. The
appeal was taken up for hearing and admitted on 3 February 2014.
CPT also made a statement before the Court that no further action
would be taken by CPT against CCTL. The Court has postponed the
matter for hearing at a later date to be determined. The Group is
confident that the case will be in favour of CCTL.
21 Subsequent event
On 8 July 2014, the Group has been notified that the Office of
the Inspector General of the Republic of Djibouti is investigating
the awarding of the Doraleh Container Terminal (DCT) concession and
has filed for arbitration before the London Court of International
Arbitration. The Group rejects all the allegations made and will
vigorously defend its position during the arbitration procedure. In
order to maintain the operational status quo and to mitigate
disruption at the terminal, the Group will continue to manage DCT
in accordance with the terms of its concession agreement pending
the determination of the arbitral tribunal.
[1]Before separately disclosed items (BSDI) primarily excludes
non-recurring items. In the first half of 2014, DP World reported
separately disclosed items of $9.2 millioncompared to $151 million
in the first half of 2013.
[2]Like-for-like at Constant Currency adjusts for (a) new
capacity at Embraport (Brazil) and London Gateway (UK); (b) the
treatment of CT3 (Hong Kong) as a joint venture terminal from June
2013; (c) pre-operational expenses at Rotterdam
(Netherlands),Yarimca (Turkey) and JNP Mumbai (India); (d) the
reduction of equity ownership of Yantai and ATLHK (China); (e)
removes the impact of exchange rates as our financial results are
translated into US dollars for reporting purposes.
[3]Consolidated throughput is throughput from all terminals
where we have control under IFRS.
[4]Adjusted EBITDA is Earnings before Interest, Tax,
Depreciation & Amortisation including share of profit from
equity-accounted investees before separately disclosed items.
5 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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