DP World reports 3.3% revenue growth amid challenging conditions

Published August 19, 2024

DUBAI – DP World Limited has announced its financial results for the first half of 2024, showcasing a 3.3% increase in revenue to USD 9.33 billion.

Despite the rise in revenue, the company’s adjusted EBITDA fell by 4.3% to USD 2.5 billion, reflecting the impact of the ongoing Red Sea crisis and investments in logistics expansion.

Revenue for the first half of 2024 reached USD 9.3 million, driven by a 6.1% increase in gross container volumes, particularly from the Americas, Europe, Asia Pacific, and Jebel Ali.

However, adjusted EBITDA experienced a decline, with a margin of 26.8% compared to 28.9% in the same period last year.

The decrease in EBITDA was attributed to disruptions caused by geopolitical tensions in the Red Sea and substantial investments in expanding the logistics platform.

DP World reported robust cash generation, with USD 2.09 billion generated from operating activities, slightly down from USD 2.13 billion in the previous year.

The company’s leverage, measured as net debt to adjusted EBITDA, was 3.8x on a pre-IFRS 16 basis, and 4.2x post-IFRS 16, reflecting a marginal increase from the previous year’s figures.

Sultan Ahmed Bin Sulayem, DP World Group Chairman and CEO, highlighted the company’s strategic approach to maintaining resilience amidst challenging conditions.

“We are pleased to report resilient results, with revenue increasing by 3.3% in the first half of the year, despite challenging macroeconomic conditions. The year 2024 has been marked by a deteriorating geopolitical environment and disruptions to global supply chains due to the Red Sea crisis,” said Sulayem.

He further emphasized the company’s commitment to expanding its logistics platform and addressing supply chain inefficiencies.

“In Logistics, our investments have been focused on organically expanding our freight forwarding platform, which now covers over 90% of global trade across more than 150 locations worldwide.”

“Our strategic investments in sectors poised for high growth allow us to provide value-added services and improve our logistics capabilities.”

Sulayem expressed cautious optimism about the future. “Our balance sheet remains strong, and our operations continue to produce substantial cash flow. This financial strength provides the flexibility to invest further in our current portfolio and to pursue new opportunities.”

“While the near-term outlook remains uncertain due to macroeconomic and geopolitical headwinds, the resilient performance of the first half positions us well for stable full-year results.”