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Report No. : |
335939 |
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Report Date : |
11.08.2015 |
IDENTIFICATION DETAILS
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Name : |
DP WORLD |
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Formerly Known As : |
DUBAI PORTS WORLD |
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Registered Office : |
Sheikh Zayed Road, Gate No. 4, Jafza LOB 17, 5th Floor Jebel Ali Free Zone 17000 Dubai |
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Country : |
United Arab
Emirates |
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Financials (as on) : |
31.12.2014 |
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Date of Incorporation : |
September 2005 |
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Legal Form : |
Limited Liability Company |
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Line of Business : |
Subject is engaged as
operators of international ports and terminals. |
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No. of Employee : |
30,000 |
RATING & COMMENTS
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MIRA’s Rating : |
Aa |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – March 31, 2015
|
Country Name |
Previous Rating (31.12.2014) |
Current Rating (31.03.2015) |
|
United Arab
Emirates |
A2 |
A2 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
UNITED ARAB EMIRATES ECONOMIC OVERVIEW
The UAE has an open economy with a high per capita income and a sizable annual trade surplus. Successful efforts at economic diversification have reduced the portion of GDP based on oil and gas output to 25%. Since the discovery of oil in the UAE more than 30 years ago, the country has undergone a profound transformation from an impoverished region of small desert principalities to a modern state with a high standard of living. The government has increased spending on job creation and infrastructure expansion and is opening up utilities to greater private sector involvement. The country's free trade zones - offering 100% foreign ownership and zero taxes - are helping to attract foreign investors. The global financial crisis, tight international credit, and deflated asset prices constricted the economy in 2009. UAE authorities tried to blunt the crisis by increasing spending and boosting liquidity in the banking sector. The crisis hit Dubai hardest, as it was heavily exposed to depressed real estate prices. Dubai lacked sufficient cash to meet its debt obligations, prompting global concern about its solvency and ultimately a $20 billion bailout from the UAE Central Bank and Abu Dhabi-emirate government that was refinanced in March 2014. Dependence on oil, a large expatriate workforce, and growing inflation pressures are significant long-term challenges. The UAE's strategic plan for the next few years focuses on diversification and creating more opportunities for nationals through improved education and increased private sector employment.
|
Source
: CIA |
Company Name : DP WORLD
Also Known As : DUBAI
PORTS WORLD
Country of Origin :
Dubai, United Arab Emirates
Legal Form : Limited Liability Company
Registration Date : September
2005
Issued Capital : US$ 1,660,000,000
Paid up Capital : US$ 1,660,000,000
Total Workforce : 30,000
Activities :
Operators of international ports and terminals.
Financial Condition : Good
Payments :
Nothing detrimental uncovered
Operating Trend : Steady
DP WORLD
DUBAI PORTS WORLD
Street : Sheikh Zayed Road, Gate No. 4,
Jafza LOB 17, 5th Floor
Area : Jebel Ali Free Zone
PO Box : 17000
Town : Dubai
Country : United Arab Emirates
Telephone : (971-4) 8815000 / 8811110 / 8815555 /
8818888
Facsimile : (971-4) 8817777 / 8816093
Email : info@dpworld.com / dpaisd@emirates.net.ae
Subject operates
from a large suite of offices and a warehouse that are owned and located in the
Central Business Area of Dubai.
Name Position
·
Sultan
Ahmed Bin Sulayem Chairman
·
Jamal
Majid Bin Thaniah Vice
Chairman
·
Anwar
Ahmed Wajdi Managing
Director
·
Sir
John Parker Director
·
David
Williams Director
·
Robert
Woods Director
·
Deepak
Parekh Director
·
Mohamed
Sharaf Chief
Executive Officer
·
Yuvraj
Narayan Chief
Financial Officer
·
Joost
Korunijning Operations
Manager
·
Iqbal
Khooury Procurement
Manager
·
Jamal
Louta Human
Resources Manager
·
Bernadette
Allinson Company
Secretary
Date of Establishment : September
2005
History : Subject’s operations date back to
the completion of the Port Rashid in 1972.
The port’s
location near to the city centre, its all-new infrastructure and Dubai’s
thriving business community made it an instant success. By 1978 the
number of
berths was increased to 35 - including five berths large and deep enough
to
handle the largest container vessels.
In 1976 construction began on the
world’s largest man-made harbour at Jebel Ali, which was completed in 1979 and
became known as Jebel Ali Port and Free
Zone.
In May 1991, Jebel Ali Port and
Free Zone merged with Port Rashid to form Dubai Ports Authority which led to a
dramatic increase in throughput to cross one million TEU’s.
Formally established in September 2005, DP World has emerged from
the
corporate integration between Dubai Ports Authority and DPI Terminals, to
become one of the largest global port operators to date.
Legal Form :
Limited
Liability Company
Issued
Capital : US$ 1,660,000,000
Paid
up Capital : US$ 1,660,000,000
·
Port
& Free Zone World FZE 80.45%
·
Local
businessmen and private investors 19.55%
Activities: Engaged as operators of international
ports and terminals.
Its
portfolio currently consists of 65 container terminals, 4 free zones and 3 logistics
centres it currently manages in the Middle East, Asia, Europe, Australia and
Latin America.
Subject continues
to invest in developments and expansions, with new developments to come in India,
Africa, Europe and the Middle East. Many of our existing terminals also have
the ability to increase capacity, as utilisation and customer demands grow. Its
investment pipeline is anticipated to increase its gross capacity to more than
100 million TEU by 2020, subject to market demand.
DP World
was created in 2005 by successfully integrating Dubai Ports Authority (DPA) and
DPI Terminals. Over the course of the past year, DP World has continued its
expansion by adding terminals in Yemen, Turkey, United Arab Emirates, India,
and China, increasing its current capacity of 20 million TEU to an estimated 42
million TEU over the next five years.
In 2013, DP World handled nearly 55 million TEU (twenty-foot equivalent container units) across its portfolio from the Americas to Asia. With a pipeline of expansion and development projects in key growth markets, including India, China and the Middle East, capacity is expected to rise to around 92 million TEU by 2020, in line with market demand.
Operating Trend: Steady
Subject has a
workforce of approximately 30,000 employees.
Financial highlights provided by local
sources are given below:
Currency: United
States Dollars (US$ 000’s)
Consolidated Balance Sheet 31/12/14 31/12/13 31/12/12
Assets
Non-current assets
Property, plant
and equipment 6,356,160 6,069,785 5,413,262
Goodwill 1,448,194 1,532,238 1,588,918
Port concession
rights 2,779,268 2,904,481 3,115,084
Investment in
equity-accounted investees 2,534,320 2,700,703
3,348,317
Deferred tax
assets 169 4,393 2,724
Other investments
70,015 62,923 60,833
Accounts
receivable and prepayments 194,322
181,110 263,428
Total non-current assets 13,382,448 13,455,633 13,792,566
Current assets
Inventories 58,277 51,717 53,283
Accounts
receivable and prepayments 740,943 680,694 609,422
Bank balances and
cash 3,723,073 2,572,470 1,881,928
Assets held for
sale -- – –
Total current assets 4,522,293 3,304,881 2,544,633
Total assets 17,904,741 16,760,514 16,337,199
Equity
Share capital 1,660,000 1,660,000 1,660,000
Share premium 2,472,655 2,472,655 2,472,655
Shareholders’
reserve 2,000,000 2,000,000 2,000,000
Retained earnings
3,918,177 3,408,504 2,968,068
Hedging and other
reserves (88,245) (31,384) (122,229)
Actuarial reserve
(404,072) (343,269) (379,171)
Translation
reserve (1,061,117) (620,706)
(482,909)
Total equity attributable to equity holders of the Company 8,497,398 8,545,800 8,116,414
Non-controlling interests 529,262 475,741
663,993
Total equity 9,026,660 9,021,541 8,780,407
Liabilities
Non-current liabilities
Deferred tax
liabilities 897,378 935,586 967,902
Employees’ end of
service benefits 74,127 61,740 55,747
Pension and
post-employment benefits 210,683 169,778 223,234
Interest bearing
loans and borrowings 5,603,658 4,776,690 4,049,621
Accounts payable and
accruals 538,214 281,246 504,755
Total non-current liabilities 7,324,060 6,225,040 5,801,259
Current liabilities
Income tax
liabilities 162,495 210,347 186,586
Bank overdrafts -- 1,407 195
Pension and
post-employment benefits 10,175 10,068 11,845
Interest bearing
loans and borrowings 251,330 258,327 702,835
Accounts payable
and accruals 1,130,021 1,033,784 854,072
Total current liabilities 1,554,021 1,513,933 1,755,533
Total liabilities 8,878,081 7,738,973 7,556,792
Total equity and liabilities 17,904,741 16,760,514 16,337,199
Consolidated Income Statement
Revenue 3,411,014 3,073,248 3,121,017
Cost of sales (1,958,295) (1,849,087)
(2,003,318)
Gross profit 1.452.719 1,224,161 1,117,699
General and
administrative expenses (385,878) (412,676) (335,309)
Other income 22,363 21,458 21,643
Profit on sale
and termination of businesses -- 158,188 237,204
Share of
profit/(loss) from equity accounted
investees (net of
tax) 77,961 80,061 154,607
Results from operating activities 1,167,165 1,071,192 1,195,844
Finance income 89,765 84,493 75,211
Finance costs (372,841) (369,439) (381,602)
Net finance costs (283,076) (284,946) (306,391)
Profit before tax 884,089 786,246
889,453
Income tax
expense (127,418) (64,458) (72,954)
Profit for the year 756,671
721,788 816,499
Local sources
consider subject’s financial condition to be Good.
·
Commercial
Bank of Dubai
Baniyas Street
PO Box: 1709
Deira
Dubai
Tel: (971-4) 2227121 / 2253222
Fax: (971-4) 2220943 / 2254565
·
Emirates
National Bank of Dubai
Baniyas Street
PO Box: 777
Dubai
Tel: (971-4) 2222555
Fax: (971-4) 2221110
Regular
DP World has emerged from the corporate integration between
Dubai Ports Authority and DPI Terminals, to become one of the largest global
port operators to date. Formally established in September 2005, DP World is
intent on expanding its portfolio from the existing 22 container terminals, 4
free zones and 3 logistics centres it currently manages in the Middle East,
Asia, Europe, Australia and Latin America. DP World aims to provide high
quality, comprehensive port management services.
During the course
of this investigation nothing detrimental was uncovered regarding subject’s
operating history or the manner in which payments are fulfilled. As such the
company is considered to be a fair trade risk.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.63.76 |
|
|
1 |
Rs.98.76 |
|
Euro |
1 |
Rs.69.88 |
INFORMATION DETAILS
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Analysis Done by
: |
KIN |
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Report Prepared
by : |
ANK |
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit transaction.
It has above average (strong) capability for payment of interest and
principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General unfavourable
factors will not cause fatal effect. Satisfactory capability for payment of
interest and principal sums |
Fairly Large |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with full
security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
-- |
NB |
New Business |
-- |
This score serves as a reference to assess SC’s
credit risk and to set the amount of credit to be extended. It is calculated
from a composite of weighted scores obtained from each of the major sections of
this report. The assessed factors and their relative weights (as indicated
through %) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend (10%) Operational size
(10%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.