New acquisitions added to strong financial results in 2018
DP World, the parent company of P&O Marinas, Dubai Maritime City and Drydocks World, has reported a 20% increase in revenues for the financial year ended December 31, 2018. The acquisition of Dubai Maritime City (DMC), a key facility for yacht repair, maintenance and refit work, along with the purchase of other companies contributed to the improved results.
The marine leisure market represents a miniscule part of DP World’s global activities, which primarily involve operating 78 port terminals in 40 countries across six continents. However, the group’s yachting interests are planned to be expanded over time with P&O Marinas looking to take on facilities outside the UAE and a new superyacht refit set-up planned to be initiated at Drydocks World.
Overall, DP World saw revenue grow by 19.8% in 2018 to $5.6bn and the adjusted EBITDA increased 13.7% with an adjusted EBITDA margin of 49.7%. This performance delivered a profit of $1.27bn, up 5.1%, and EPS of 153 US cents. On a like-for-like basis, revenue grew 4.2%, adjusted EBITDA increased by 6.6% with an adjusted EBITDA margin of 54.1%, and earnings attributable to owners of the company increased 7.6%.
There are no figures available for any of the subsidiary companies involved with yacht-related activities in Dubai. However, the $405m deal in 2017 to acquire Drydocks World and DMC was completed in January 2018. Through these two acquisitions, the yacht interest of DP World would have been increased, as both businesses are involved in the repair and refit of yachts and are responsible, through associate companies, of looking after the Dubai Royal Family yachts, which include the 162m (532ft) Dubai.
DP World also looks after the management of the Al Jadaf area in Dubai Creek, where around 100 companies are engaged in repair and maintenance work including on yachts.
As for P&O Marinas, in 2018 if signed an agreement with Monaco Ports to jointly develop superyacht marina destinations with a particular focus on the Mediterranean. It is understood that a number of projects are being looked at, but none have yet been finalised.
For the past two years, DP World, through P&O Marinas, has organised the Dubai International Superyacht Summit and at both editions of this event discussion was held on how to develop the UAE, and specifically Dubai, as a leading superyacht destination.