DP World, a global ports giant, has reported a 3.3% revenue growth in the first half of 2024, reaching $9.34 billion. The growth was primarily driven by its logistics, ports, and terminals divisions. Despite facing challenging geopolitical and macroeconomic headwinds, the company described its performance as relatively resilient. DP World expressed confidence in delivering an improved second-half adjusted earnings and remains positive about the medium to long-term outlook for global trade. The company is focused on delivering integrated supply chain solutions to cargo owners in order to drive sustainable returns.
Consolidated container volumes increased by 3.7% on a like-for-like basis to 25.033 million twenty-foot equivalent units (TEUs). However, attacks on Red Sea shipping and subsequent rerouting of ships have significantly disrupted the supply chain sector, impacting DP World’s operations in the Middle East, Africa, and Europe. The company’s overall profit attributable to owners was $265 million in the first half of the year, down from $651 million a year earlier. Additionally, the overall adjusted core profit fell by 4.3% to $2.497 billion due to the crisis and investments made to expand its logistics platform. Despite these challenges, DP World expects an improved performance for the second part of the year.
According to Sultan Ahmed Bin Sulayem, DP World Group Chairman and CEO, the deteriorating geopolitical environment and disruptions to global supply chains due to the Red Sea crisis have defined the year 2024. The company’s strategic emphasis on high-margin cargo, comprehensive end-to-end supply chain solutions, and stringent cost management have been crucial in achieving financial performance. DP World has been investing in expanding its freight forwarding platform, encompassing over 90% of global trade across more than 150 locations worldwide. The company is dedicated to continuously improving its logistics capabilities by addressing supply chain inefficiencies and enhancing connectivity in key trade corridors.
Despite facing uncertainties in the near-term due to macroeconomic and geopolitical headwinds, DP World’s balance sheet remains strong, with operations generating substantial cash flow. This financial strength allows the company the flexibility to invest in its current portfolio’s growth and seize new opportunities as they emerge. DP World invested $994 million in capital expenditures during the first half of 2024, compared to $910 million in the same period last year. The investment was strategically allocated across the company’s portfolio, with a significant portion directed towards Ports and Terminals, Logistics and Parks, and Economic Zones.
Looking ahead, DP World has projected capital expenditures of approximately $2.0 billion for the full year 2024. The investment will focus on key projects in the UAE, including Drydocks World, as well as strategic expansions in London Gateway, Inland logistics (India), Dakar, East Java, Callao (Peru), Jeddah, Dar Es Salam, DP World Logistics (Africa), and Fraser Surrey Docks (Canada). Despite ongoing challenges, DP World remains optimistic about its future prospects and aims to continue delivering stable full-year adjusted Ebitda.
