DP World reports 22% jump in H1 profits

DP World kicks against termination of concession agreement by Djibouti  

Terminal operator and maritime services company DP World a  22% jump in first half profit to $753m as diversification pays off against an uncertain global economic backdrop.

DP World saw a 31.9% growth in revenues $3.46bn driven by acquisitions and growth in non-container revenues.

The Group chairman/CEO of DP World, Sultan Ahmed Bin Sulayem, said, “DP World is pleased to report like-for-like earnings growth of 22% in the first half of 2019 and attributable earnings of $753m. This strong financial performance has been delivered in an uncertain trade environment, once again highlighting the strength of our portfolio.

‘We have continued to make progress on our strategy to become a trade enabler and solutions provider as we look to participate across a wider part of the supply chain. We have invested significantly across our Ports, Logistics & Maritime Services businesses.”

In the first half of the year DP World acquired P&O Ferries and offshore vessel owner and operator Topaz Marine & Energy.

“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,” he said.

Capital expenditure across its existing portfolio in the first half of the year was $636m and expected to reach $1.4bn for the year as a whole with investments planned into UAE, Posorja (Ecuador), Berbera (Somaliland), Sokhna (Egypt) and London Gateway (UK).

Looking ahead Bin Sulayem commented: “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.”