DP World Registers $5.18 Billion EBITDA In 2023
Company Maintains A Prudent Financial Policy
Dubai-based DP World has unveiled its robust financial results for the fiscal year ending December 31, 2023, defying challenging geopolitical complexities and economic headwinds.
The company’s strategic focus on high-margin cargo and integrated supply chain solutions has proven pivotal in achieving commendable outcomes.
In a year marked by global uncertainties, DP World reported a 6.6% increase in revenue, reaching $18.25 billion. This was accompanied by a 1.9% rise in adjusted EBITDA to $5.18 billion, maintaining a healthy margin of 28.0%.
Despite a 17.7% decline in profit, attributed primarily to heightened finance costs, the company’s resilient performance underscores its ability to navigate turbulent waters.
Drydocks World
Revenue growth was supported by notable contributions from Drydocks World and the consolidation benefits of the Imperial Logistics acquisition.
Adjusted EBITDA increased by 1.9%, with a like-for-like adjusted EBITDA margin of 28.9%.
Despite macroeconomic challenges, DP World exhibited robust cash generation, with operating activities yielding $4.5 billion in cash in 2023.
The company maintained a prudent financial policy, managing leverage to retain a strong investment grade rating.
DP World allocated a significant capital expenditure of $2.11 billion across its existing portfolio in 2023, with a projected investment of approximately $2.0 billion earmarked for key growth markets in 2024.
DP World is committed to delivering customised supply chain solutions, leveraging its state-of-the-art infrastructure, and emphasising long-term relationships and revenue synergies.
In line with the UAE 2050 Initiative, DP World aims to reduce its carbon emissions. It targets a 13% decarbonisation in Scope 1 and Scope 2 emissions and will invest over $500 million in emission reduction initiatives over the next five years.
Despite geopolitical and macroeconomic challenges, DP World maintains a positive medium to long-term outlook for global trade, focusing on sustainable returns and integrated supply chain solutions.
In a statement, Sultan Ahmed bin Sulayem, Chair & CEO of DP World, expressed satisfaction with the stable results amidst daunting challenges, affirming DP World’s commitment to sustainable long-term growth and returns.
Featured image: A container vessel at DP World’s Jebel Ali terminal in Dubai. Credit: DP World
