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STABLE RESULTS

DP World revenue up 6.6% to $18.25bn; profit falls 17.7%

DUBAI, March 14, 2024

DP World Limited has reported a revenue growth of 6.6% to $18.25 billion and adjusted EBITDA increase of 1.9% to $5.108 billion with a healthy adjusted EBITDA margin of 28% for 2023 (on a reported basis).
 
Profit for the year decreased by 17.7% to $1.514 billion mainly due to higher finance costs, it said.
 
Key highlights:
 * Cash generated from operating activities increased by 2.9% to $4.579 billion in 2023 ($4.451 billion in 2022). 
* Leverage (Net debt to adjusted EBITDA) on a pre-IFRS16 basis increased to 3.5x (FY2022: 2.7x) due to higher net debt. On a post-IFRS16 basis, net leverage stands at 3.8x (FY2022: 3.0x).
* DP World’s financial policy remains unchanged -- to manage the balance sheet at below 4.0x Net Debt to EBITDA (pre IRFS 16) and to retain a strong investment grade rating. 
* Capital expenditure of $2.112 billion ($1.715 billion in 2022) was invested across the existing portfolio.
* Capital expenditure budget for 2024 is approximately $2 billion to be invested mainly in Jebel Ali (UAE), London Gateway (United Kingdom), Inland logistics (India), Dakar (Senegal), East Java (Indonesia), Callao (Peru) and Jeddah (Saudi Arabia).
 
The company said during the year, it focused on driving revenue synergies and building long-term relationships with cargo owners. Its enhanced logistics portfolio offers value-add capabilities in fast-growing markets and verticals. DP World aims to deliver supply chain solutions to cargo owners by leveraging its best-in-class infrastructure and group is well-positioned to capitalise on the growing demand for customised solutions in the logistics industry, it said. 
 
The group is committed to transition to net zero in line with UAE 2050 Initiative. It has achieved 13% decarbonisation in Scope 1 and Scope 2 carbon emissions and is committed to investing more than $500 million to reduce CO2 emissions in the next five years, it said.
 
DP World Group Chairman and CEO, Sultan Ahmed bin Sulayem, commented: “We are pleased to report stable results, with adjusted EBITDA increasing by 1.9% to $5.1 billion. This achievement is particularly noteworthy considering the significant challenges posed by a deteriorating geopolitical landscape and challenging macroeconomic conditions. Our strategic focus on high-margin cargo, end-to-end integrated supply chain solutions, and diligent cost optimization have played a pivotal role in securing these results. Not only has this strategy proven effective during these testing times, but it also lays a solid foundation for our sustainable long-term growth and returns.”
 
“Overall, we delivered a steady performance in 2023, and despite the uncertain start to 2024 with the ongoing Red Sea crisis, our portfolio has continued to demonstrate resilience. The outlook remains uncertain due to the challenging geopolitical and economic environment. Nevertheless, we anticipate our portfolio will sustain robust performance, and we maintain a positive outlook on the medium to long-term fundamentals of the industry and DP World’s capacity to deliver sustainable returns consistently,” he said.
 
Robust performance in Ports & Terminals
DP World's container volumes increased by 3.1%, outperforming a flat market, showcasing our portfolio's resilience and strategic positioning. A strong performance in Asia Pacific, India and Middle East were the key drivers of growth, while Americas and Europe were softer due to the weaker economic environment.  Encouragingly, Jebel Ali (UAE) continues to deliver a steady performance. 
 
“Our strategic focus on expanding capacity in high-margin cargo locations, coupled with investing in markets exhibiting strong supply-demand dynamics, continues to yield favourable results,” said  Bin Sulayem
 
Logistics platform enhanced 
“Within our Logistics business, DP World has strategically focused on capitalising on revenue synergies and integrating cutting-edge capabilities. Our focus on cost optimisation has contributed to protecting our profitability margins,” said Bin Sulayem.
 
DP World is at the forefront of streamlining supply chain operations, ensuring enhanced connectivity across emergent trade corridors. The escalating demand for custom-tailored supply chain solutions, driven by the evolving requirements of cargo owners, positions DP World advantageously to capitalise on these emerging trends. This year, our initiative to expand our freight forwarding network to encompass over 100 geographic locales is a testament to our dedication to superior customer service excellence.
 
DP World has unveiled a suite of innovative products and services, including Cargoes Flow, DP World Trade Finance, and Cargoes Logistics, streamlining the trading process for cargo owners. Our dedication to the creation of intelligent and efficient platforms reaffirms our leadership ambition in the logistics solutions sector. -TradeArabia News Service
 



Tags: DP World | shipping | logisitics |

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