DP World reports strong performance of feeder services and key acquisitions.
DP World, Dubai’s major operator of ports and terminals, announced revenue growth of 60.4% in H1 2022, recording revenues of USD 7.93 billion. According to the company, the growth was achieved through acquisitions in key overseas markets and strong performance in feeder services. High margins in cargo operations also contributed strongly as the pandemic inflated prices.
DP World’s profit over the period was USD 884 million, up 51.2% from the same period last year.
“We are delighted to report a record set of first-half results with adjusted EBITDA growing 34.6 per cent and attributable earnings rising 51.8 per cent,” said Sultan Bin Sulayem, Chairman, and CEO. “This significant growth demonstrates that our strategy to focus on high margin cargo and to offer customized supply chain solutions will provide sustainable returns in the long term.”
DP World: Raising capital
“In recent months, we announced several transactions to raise approximately $9 billion. This strengthening of the balance-sheet allowed us to achieve our 2022 leverage target of below 4x net debt to EBITDA, and this fresh capital also provides us with the flexibility to accelerate investment in key growth markets whilst maintaining an investment grade rating,” said Bin Sulayem.
Ongoing international instability is of concern, along with the higher inflationary environment, currency fluctuations and continued issues with the global supply chain, according to the company. However, “DP World remains positive on medium to long-term outlook for global trade and is focused on delivering integrated supply chain solutions to cargo owners to drive growth and returns,” the company said in a statement.
According to Bin Sulayem, “Cargo owners continue to respond positively to our end-to-end product offering and we are focused on integrating our recent logistics acquisitions to further drive revenue synergies. We continue to invest in high growth verticals and markets to offer compelling supply chain solutions.”
Across H1 2022, gross throughput was 39.48 million TEUs, an increase of 2.3%, while within the Middle East, Europe and Africa port operations, the tally was 12.37 million TEUs, 2% increase.
DP World: Continued investment
DP World revealed that it intended to make investments across 2022 totaling USD 1.4 billion, including investments in its UAE operations, Jeddah, London Gateway, Sokhna (Egypt), Senegal and Callao (Peru).
The company made a number of major investments and alliances over the first half of 2022, including a USD 5 billion investment by Canada’s CDPQ, an expanded partnership with India’s NIIF, the creation of an investment platform with BII Group ‘to accelerate investment in Africa’ and the company’s exit from Le Havre and a consolidation of the Eurofos terminal in France.
DP World has recently been making investments in African logistics companies.