Smooth sailing for DP World as H1 2024 revenue hits $9.33 billion
Key focus on freight forwarding platform
DP World has released its financial results for the first half of 2024, showcasing a resilient performance amidst a challenging global environment. For the period ending June 30, 2024, the company reported a 3.3% increase in revenue to $9.335 billion despite a 4.3% decrease in adjusted EBITDA to $2.497 billion, reflecting an adjusted EBITDA margin of 26.8%.
DP World’s revenue saw a solid 3.3% increase, driven primarily by growth in ports and terminals. The company reported a 6.1% rise in like-for-like gross container volumes, spurred by robust performances across the Americas, Europe, Asia Pacific, and Jebel Ali.
The company’s adjusted EBITDA fell by 4.3%, influenced by disruptions in the Red Sea and ongoing investments in expanding its logistics platform. The EBITDA margin for the first half of 2024 stood at 26.8%, down from 28.9% in the same period last year.
Operating activities
The Dubai-based port operator demonstrated strong cash generation with $2.091 billion from operating activities, a slight decrease from $2.134 billion in 1H 2023. The company’s leverage ratio, measured as net debt to adjusted EBITDA, increased to 3.8x on a pre-IFRS 16 basis from 3.7x at the end of FY 2023 and 4.2x on a post-IFRS 16 basis, up from 4.0x.
The company invested $994 million in its portfolio during the first half of 2024, up from $910 million in 1H 2023. Investments were distributed across ports and terminals, logistics, marine services, and head office.
DP World has set a capital expenditure guidance of approximately $2.0 billion for the entire year, focusing on projects in the UAE, UK, India, Senegal, Indonesia, Peru, Saudi Arabia, Tanzania, Africa, and Canada.
DP World is committed to enhancing its freight forwarding platform, which covers over 90% of global trade. The company concentrates on revenue synergies and builds long-term relationships with cargo owners through improved connectivity and value-added services.
Revenue increase
Sultan Ahmed Bin Sulayem, DP World Group Chairperson and CEO, stated: “We are pleased to report resilient results, with revenue increasing by 3.3% in the year’s first half. Despite the deteriorating geopolitical environment and disruptions to global supply chains, our focus on high-margin cargo and comprehensive supply chain solutions has been crucial to our performance.”
Bin Sulayem highlighted ongoing investments in logistics and the company’s strong balance sheet as key factors in maintaining operational flexibility and preparing for future growth.
“Our strategic investments in logistics and ability to manage cost and supply chain efficiencies are positioning us well for the second half of 2024. We remain confident in our ability to deliver stable full-year adjusted EBITDA and are optimistic about the long-term outlook for the industry,” he added.
Featured image: Aerial view of DP World’s Jebel Ali port in Dubai, UAE. Credit: DP World
