On Thursday, global ports leader DP World announced a 3.3 percent increase in revenue for the first half of 2024, reaching $9.34 billion, fueled by its logistics, ports, and terminals sectors. Despite facing tough geopolitical and macroeconomic challenges, the company described its performance as "relatively resilient." DP World expressed confidence in enhancing its adjusted earnings before interest, taxes, depreciation, and amortization (Ebitda) for the second half of 2024 and remains optimistic about the medium to long-term prospects for global trade, focusing on providing integrated supply chain solutions to cargo owners for sustainable returns.
Consolidated container volumes rose by 3.7 percent on a like-for-like basis to 25.033 million twenty-foot equivalent units (TEUs), although disruptions in the supply chain sector due to attacks on Red Sea shipping and subsequent rerouting of vessels affected operations, particularly in the Middle East, Africa, and Europe, where operations were described as "partially impacted." DP World's overall profit attributable to owners dropped to $265 million for the six months ending June 30, from $651 million a year earlier. The company's adjusted core profit decreased by 4.3 percent to $2.497 billion due to the crisis and investments in expanding its logistics platform. DP World anticipates an improved performance in the second half of the year.
DP World Group Chairman and CEO, Sultan Ahmed Bin Sulayem, noted that 2024 has been characterized by a worsening geopolitical climate and supply chain disruptions due to the Red Sea crisis. He emphasized the strategic focus on high-margin cargo, comprehensive end-to-end supply chain solutions, and strict cost management as key factors in achieving the financial results. Sulayem highlighted investments in logistics, particularly in expanding the freight forwarding platform, which now covers over 90 percent of global trade across more than 150 locations worldwide. He also mentioned the commitment to improving logistics capabilities, addressing supply chain inefficiencies, and enhancing connectivity in key trade corridors to better support cargo owners.
The company's balance sheet remains robust, with operations generating significant cash flow, providing flexibility for further investments in growth and new opportunities. Despite uncertainties in the near-term trading outlook due to macroeconomic and geopolitical headwinds, the strong financial performance in the first half and positive momentum entering the second half position DP World well for stable full-year adjusted Ebitda. DP World invested $994 million in capital expenditures during the first half of 2024, up from $910 million in the same period last year, strategically allocated across its portfolio. The global ports operator plans to invest approximately $2.0 billion for the full year 2024, focusing on key projects in the UAE and strategic expansions in various locations globally.
