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DP World revenues were up 3.3% to $9.335 billion in the first half of the year, driven by its ports and terminals business
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Cash generated from operating activities was $2 billion, down 2%
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Adjusted EBITDA decreased 4.3% to $2.497 billion due to Red Sea disruption, logistics expansion
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Capital expenditure of $994 million against $910 million year-on-year was invested across the existing portfolio
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Capex guidance for 2024 is for approximately $2 billion
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Outlook remains positive on the medium to long-term for global trade
DP World Limited reported revenues of $9.335 billion for the first half of 2024, up 3.3% compared to the same period last year.
According to a media statement, the Emirati logistics company’s revenue growth was driven by its ports and terminals segment. Like-for-like gross container volumes grew 6.1%, steered by strong growth in the Americas, Europe, Asia Pacific, and Jebel Ali (Dubai).
Cash generated from operating activities was $2.091 billion, down 2% compared to $2.134 billion year-on-year.
Adjusted EBITDA decreased 4.3% to $2.497 billion due to Red Sea disruption and organic investment in logistics platform expansion.
“We are pleased to report resilient results, with revenue increasing by 3.3% in the first half of the year, despite challenging macroeconomic conditions. The year 2024 has been marked by a deteriorating geopolitical environment and disruptions to global supply chains due to the Red Sea crisis,” said DP World Group Chairman and CEO, Sultan Ahmed bin Sulayem.
“Nevertheless, our strategic emphasis on high-margin cargo, comprehensive end-to-end supply chain solutions, and stringent cost management have been crucial in achieving this financial performance,” he added.
DP World reported capital expenditure of $994 million ($910 million in the first half of 2023) that was invested across the existing portfolio, as follows:
$593 million in ports and terminals;
$278 million in logistics and parks and economic zones;
$122 million in marine services; and
$1 million in head office.
Capital expenditure guidance for 2024 is for approximately $2.0 billion to be invested in the United Arab Emirates, including Drydocks World; London Gateway (United Kingdom); Inland logistics (India); Dakar (Senegal); East Java (Indonesia); Callao (Peru); Jeddah (Saudi Arabia); Dar Es Salam (Tanzania) and DP World Logistics (Africa); and Fraser Surrey Docks (Canada).
DP World officials said these logistics investments have been focused on expanding its freight forwarding platform that covers more than 90% of global trade to provide cargo owners with improved connectivity.
“Strategic investments in sectors poised for high growth allow us to provide value-added services, and we remain dedicated to continuously improving our logistics capabilities. This includes tackling supply chain inefficiencies and enhancing connectivity in key trade corridors to better support cargo owners,” said bin Sulayem.
“In summary, our balance sheet remains strong, and our operations continue to produce substantial cash flow. This financial strength provides the flexibility to further invest in our current portfolio’s growth and to seize new investment opportunities as they emerge,” he added.
Despite prevailing global economic challenges, the company expressed confidence in delivering an improved EBITDA performance for the second half of the year, with a positive medium to long-term outlook for global trade and for delivering integrated supply chain solutions to cargo owners for sustainable returns.
READ: DP World, ICTSI post strongest revenue growth among global port operators in 2023
