DP World posts solid profits in first half

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DP World posts solid profits in first half
DP World revenues up 13.9% to US$9.037 billion in the first half of 2023 from $7.93 billion year-on-year. Jebel Ali Terminal photo from DP World. website
  • DP World’s adjusted earnings before interest, taxes, depreciation, and amortization grew 7% to $2.611 billion in the first half
  • H1 2023 revenue is up 13.9% to $9.037 billion from $7.93 billion year-on-year
  • The group said outlook remains “uncertain” due to geopolitics, rising inflation, higher interest rates and currency fluctuations

DP World posted solid profits for the first half of 2023, with revenue up 13.9% to US$9.037 billion from $7.93 billion in the same period in 2022.

Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) grew 7% to $2.611 billion, the Dubai-based multinational logistics company said in a statement.

DP World noted the revenue growth after full consolidation of Imperial Logistics in 2022, and significant performance in Africa and Drydocks World in the United Arab Emirates.

The group said the outlook remains “uncertain” due to geopolitics, rising inflation, higher interest rates, and currency fluctuations.

It said it maintains a “positive” medium to long-term outlook for global trade and is focused on delivering integrated supply chain solutions to cargo owners to drive sustainable returns.

Net cash generated from operating activities stood at US$1.951 billion in the first half compared to $1.931 billion in the same period in 2022.

A capital expenditure of $910 million (against $741 million in 2022) was invested across the existing portfolio: $412 million in ports and terminals; $284 million in logistics and parks and economic zones; $187 million in marine services; and $27 million in DP World’s head office.

Capital expenditure guidance for 2023 is for approximately $2 billion to be invested in UAE, Jeddah (Saudi Arabia), London Gateway (United Kingdom), Dakar (Senegal), Callao (Peru), and DPW Logistics (South Africa), the company said.

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DP World’s credit rating by Fitch improved by two notches to BBB+ with Stable Outlook and one notch by Moody’s to Baa2 with Stable Outlook on improved financial performance and a stronger balance sheet.