Profit attributable to the owners of DP World rose by 5.1% to US$1.27bn last year as new investments drove substantial revenue growth for the operator.
Revenue jumped by 19.8% to US$5.6bn, driven by the acquisition of Drydocks World, Dubai Maritime City (DMC), Cosmos Agencia Maritima, Continental Warehousing Corporation (CWC) and the Santos consolidation. On a like-for-like basis, revenue increased by 4.2%.
The company made a capital expenditure of US$908m last year, below the group’s guidance of approximately US$1.4bn.
The Dubai-based operator expects capital expenditure in 2019 to be up to $1.4bn with investment planned mainly into UAE, Posorja (Ecuador), Berbera (Somaliland), Dakar (Senegal) and Sokhna (Egypt).
DP World group chairman and CEO, Sultan Ahmed bin Sulayem, stated: “This robust performance has been delivered in an uncertain trade environment, once again highlighting the resilience of our portfolio.”
He said that the US$2.5bn worth of acquisitions announced in 2018 “offer strong growth opportunities and enhance DP World’s presence in the global supply chain as we continue to diversify our revenue base and look at opportunities to connect directly with the owners of cargo and aggregators of demand”.
“Going forward, we aim to integrate our new acquisitions and drive synergies across the portfolio with the objective of removing inefficiencies in global trade, improving the quality of our earnings and driving returns,” he added.
The company has recently showed a desire to branch out beyond container terminal investments, acquiring multimodal logistics player Continental Warehousing Corporation (CWC) in India as well as European feeder carrier Unifeeder Group and pan-European logistics business P&O Ferries.
The company has also won a 30-year concession for the management and development of a greenfield port project at Banana in the Democratic Republic of the Congo and acquired two ports in Chile.
Sulayem added: “Current year has started with trading in line with expectations and whilst the near-term outlook remains uncertain with the trade war and geopolitical headwinds, we expect our portfolio to remain resilient and see increased contributions from our recent acquisitions and investments.”