DP World’s profit surges in uncertain trade environment

Dubai-based container port operator DP World delivered strong financial results in the first half of 2019 despite challenging global economic conditions.

Profit for the period increased to USD 753 million from USD 593 million reported in the first six months of 2018, representing a growth of 26.8% on a reported basis and 22.2% on a like-for-like basis.

The company’s revenue surged by 31.9% on reported and 10.8% on a like-for-like basis to USD 3.46 billion from last year’s USD 2.62 billion, supported by acquisitions and growth in non-containerized revenue.

“Our half-year financial results have been in line with our expectations,” Ahmed Bin Sulayem, DP World Group Chairman and CEO, said.

Bin Sulayem added that the company has been able “to deliver and excel a broadly impressive performance in the first half of 2019” despite uncertainty from the trade war and challenging regional geopolitical realities.

During the period, the company continued investing across its ports, logistics & maritime services businesses. Ports and terminals investments included two new assets in Chile, Fraser Surrey Docks (Canada) and consolidation of assets in Australia, while logistics and maritime investment included the acquisition of Pan-European logistics platform of P&O Ferries and marine logistics operator, Topaz Energy and Marine.

Capital expenditure of USD 636 million was invested across the existing portfolio during the first half of the year, the company said, adding that capital expenditure guidance for 2019 remains unchanged at up to USD 1.4 billion with investments planned into UAE, Posorja (Ecuador), Berbera (Somaliland), Sokhna (Egypt) and London Gateway (UK).

“Going forward, we aim to integrate our new acquisitions and deliver synergies with the objective of providing smart end-to-end solutions, which will improve the quality of our earnings and drive returns,” Bin Sulayem noted.

“While the near-term trade outlook remains uncertain with global trade disputes and regional geopolitics causing uncertainty to the container market, the strong financial performance of the first six months also leaves us well placed to deliver full-year results slightly ahead of market expectations.”