DP World profits up 27% in half year

DP World profits up 27% in half year
Sultan Ahmed bin Sulayem, CEO of DP World

DP World’s profits attributable to the company owners soared by 27% to US$753m in the first half of 2019, bolstered by acquisitions and growth in non-containerised revenue.

Conolidated throughput was up by 4.9% across the terminal portfolio to 19.5m teu although it was down by 1.7% on a like-for-like basis, highlighting the contribution of new investments.

The terminal operator’s like-for-like earnings were up by 22% as the company continued with its diversification strategy, aiming to participate across a wider part of supply chain.

Hoping to connect directly with customers to offer logistics solutions and remove inefficiencies in the supply chain, the company has acquired Unifeed and become a significant inland logistics operator in India in recent years.

It also invested in two new assets in Chile this year, along with the Fraser Surrey Docks8 in Canada and a consolidation of assets in Australia.

It also acquired the pan-European logistics platform of P&O Ferries and marine logistics operator, Topaz Marine & Energy8.

Sultan Ahmed bin Sulayem, group chairman and CEO of DP World, said: “This strong financial performance has been delivered in an uncertain trade environment, once again highlighting the strength of our portfolio.

“Our balance sheet remains strong, and we continue to generate high levels of cash flow, which gives us the ability to invest in the future growth of our current portfolio. 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.”

Capital expenditure across the existing portfolio reached US$636m in the first half of 2019 while it is expected to reach US$1.4bn by the end of the year.

Future investments planned during the remainder of 2019 will focus on facilities in the UAE, Posorja in Ecuador, Berbera in Somaliland, Sokhna in Egypt and London Gateway.

Sulayem added: “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.”