DP World reports  22% jump in H1 profits on diversification strategy

Sultan Ahmed Bin Sulayem

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.

Sultan Ahmed Bin Sulayem, group chairman and ceo of DP World, 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.

Read more: DP World expands in offshore acquiring Topaz Energy and Marine in $1.08bn deal

“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.”

Posted 22 August 2019

© Copyright 2019 Seatrade Informa Markets. Replication or redistribution in whole or in part is expressly prohibited without the prior written consent of Seatrade Informa Markets.

Kris Vedat - Seatrade Offshore Marine & Workboats Middle East

Related Topics

Marcus Hand

Author Bio ▼

Editor, Seatrade Maritime News Marcus Hand is the editor of Seatrade Maritime News and a dedicated maritime journalist with nearly two decades of experience covering the shipping industry in Asia. In addition to running Seatrade's maritime and offshore news website based from Singapore he is the Asia Editor of Seatrade Maritime Review. Marcus is also an experienced industry commentator and has chaired many conferences and round tables. Prior to joining Seatrade at the beginning of 2010 Marcus worked for shipping industry journal Lloyd's List for a decade and previous to that the Singapore Business Times covering shipping and aviation.

Sign up to get the latest Maritime News headlines emailed directly to your inbox

SUBSCRIBE