DP World’s H1 revenues surge 14% to $9b

Global ports operator's adjusted Ebitda grew by 7% to $2,611 million

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DP World continued to make substantial progress towards its 2050 net zero carbon target. — File photo

Published: Thu 17 Aug 2023, 3:20 PM

Global ports operator DP World has said it achieved a revenue growth of nearly 14 per cent to $9.037 billion in the first six months despite “a softer container market and weakened freight rates amid challenging economic conditions.”

The Dubai's state-owned company said its adjusted Ebitda (earnings before interest, taxes, depreciation and amortisation) grew by 7.0 per cent to $2,611 million with adjusted Ebitda of 28.9 per cent. The first half profit fell nearly 10 per cent from a year earlier. Profit attributable to DP World's owners in the six months to June was down 9.7 per cent at $651 million from a year earlier, when the port operator posted record profit of $721 million.

DP World Group Chairman and CEO, Sultan Ahmed bin Sulayem, said the resilient set of results for the first half of 2023, was achieved despite facing a softer container market and weakened freight rates amid challenging economic conditions. “Our focus on high-margin cargo, end-to-end bespoke supply chain solutions and cost optimisation has been crucial in securing these results. This strategy has not only been effective during these challenging times but also lays the foundation for our sustainable long-term growth and returns,” he said.

The company said its capital expenditure of $910 million ($741 million in H1 2022) was invested across the existing portfolio Capital expenditure guidance for 2023 is for approximately $2.0 billion to be invested in the UAE, Jeddah, London, Dakar, Callao (Peru) and DPW Logistics (South Africa).

Bin Sulayem said DP World’s logistics vertical has demonstrated robustness in this demanding economic landscape, attracting more cargo owners to our platform. “The positive feedback to our end-to-end product emphasis the value of our customised solutions enabling customers to conduct trade more effectively. Strategic investments in high-growth sectors enable us to provide value-added solutions, and we remain committed to continuously enhancing our logistics platform. This includes addressing supply chain inefficiencies and enhancing connectivity in crucial trade lanes to serve cargo owners better.”

Sulayem said DP World continued to make substantial progress towards its 2050 net zero carbon target. “Our recent investment in renewable energy through the I-REC programme has significantly cut DP World UAE business carbon emissions by 47 per cent. We are confident of achieving our goal to cut CO2 emissions by 700k tonnes which accounts for approximately 22 per cent of our total emission within the next five years.”

“Our balance sheet remains robust, and we continue to generate high levels of cash flow, which provides us the flexibility to invest in the growth of our existing portfolio and new investment opportunities when they arise. While the near-term trade outlook may be uncertain due to macroeconomic and geopolitical factors, the solid financial performance of the first six months positions us well to deliver a steady set of full-year results. We remain optimistic about the medium to long-term prospects of the industry and DP World’s capacity to consistently generate sustainable returns,” said Sulayem.