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Acquisitions and non-container revenue boost DP World

Acquisitions and non-container revenue boost DP World
Sultan Ahmed bin Sulayem, CEO of DP World

DP World recorded revenue growth of 36.1% last year, driven by logistics acquisitions including P&O Ferries (UK) and Topaz Energy & Marine (UAE) as well the purchase of two terminals in Chile (Puerto Central and Puerto Lirquen).

The full year impact from Continental Warehousing Corporation (India), Cosmos Agencia Maritima (Peru) and Unifeeder (Denmark), and the consolidation of Australia region, also contributed to the revenue of US$7.7bn.

Like-for-like revenue increased by 2.3% driven by 16% growth in non-container revenue.

Profit attributable to owners of the company, before separately disclosed items, of US$1.3bn, up 4.6%.

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

“We have continued to make progress on our strategy to deliver integrated supply chain solutions to cargo owners and have focused our efforts on building end-to-end capabilities for several verticals including the Automotive, Oil & Gas and FMCG industries.”

Capital expenditure (capex) of US$1.1bn was invested across the existing portfolio last year. For 2020, capex of up to US$1.4bn is expected with investments planned in UAE, Prince Rupert (Canada), London Gateway (United Kingdom), Jeddah (Saudi Arabia), Callao (Peru), Sokhna (Egypt) and Berbera (Somaliland).

The terminal operator recently decided to de-list its equity from the stock exchange and return to private ownership, with bin Sulayem noting: “We believe this long-term approach to business is not aligned with the short term thinking of equity markets and consequently the next stage of DP World’s development will take place as a private company.”

“Our immediate focus is to integrate our acquisitions and explore synergies with the objective of providing a range of smart end-to-end solutions which will improve the quality of our earnings and drive returns,” he added.

Global trade disputes, the Covid-19 outbreak and regional geo-politics make the near-term outlook concerning, he pointed out, while noting the industry’s medium to long term outlook is positive.