UAE’s DP World reveals 0.6% YoY rise in profit to $1.34bn in 2019
DP World is well positioned for the future despite the supply chain disruption caused by the COVID-19 outbreak
UAE-based global ports operator DP World has reported a 36.1% year-on-year growth in revenue to $7.686bn in FY 2019, with a 17.7% YoY rise in adjusted EBITDA marking a 0.6% increase in profit to $1.341bn in 2019.
The firms stated that its revenue growth was driven by acquisitions, including P&O Ferries (UK), Topaz Energy & Marine (UAE) and the two terminals in Chile (Puerto Central and Puerto Lirquen) as well as the full year impact from Continental Warehousing Corporation (India), Cosmos Agencia Maritima (Peru) and Unifeeder (Denmark), and the consolidation of Australia region.
In addition, capital expenditure guidance for 2020 is up at $1.4bn, with investments planned in the UAE, Prince Rupert (Canada), London Gateway (UK), Jeddah (Saudi Arabia), Callao (Peru), Sokhna (Egypt), and Berbera (Somaliland).
Despite an uncertain global trade outlook due to the supply chain disruption caused by the COVID-19 outbreak, the firm has stated that it will continue to maintain its disciplined investment approach, and deliver integrated supply chain solutions to cargo owners.
Looking into 2020, the global ports operator intends to manage costs and protect profitability.
Commenting on the plans for the future, the group chairman and chief executive officer of DP World, Sultan Ahmed Bin Sulayem, said: “DP World has taken the decision to announce its plans to de-list its equity from the stock exchange and return to private ownership. The strength and resilience that our business continually demonstrates throughout the cycles is due to the investment the group has made over the years in response to changes in our industry.”
“Our ability to adapt and change has been the key to our success, and we must continue to evolve for continued success. We believe this long-term approach to business is not aligned with the short term thinking of equity markets and consequently the next stage of DP World’s development will take place as a private company,” he added.
“The near-term outlook remains a cause for concern with global trade disputes, Covid-19 outbreak and regional geo-politics, causing disruption to trade. However, DP World is well positioned to respond in the short term by focusing on disciplined investment and managing the cost base to protect profitability. Overall, we remain positive on the medium to long term outlook of the industry,” Sulayem concluded.