Dubai’s DP World Posts Rise In H1 Revenue Of $4.9B As Global Trade ReboundsDubai’s DP World posts rise in first-half profit. Image by Novikov Aleksey / Shutterstock.com Forbs reported
Dubai-based multinational logistics company DP World posted a 52% jump in first-half profit buoyed by higher consumer spending, recent acquisitions, and a rebound in global trade since the coronavirus outbreak.
The port operator recorded revenues amounting to $4.9 billion in the six months to June 30, recording a 21.3% increase from the same time last year. It attributed the revenue growth to acquisitions and strong growth in India, Australia and the UK.
DP World’s profit rose to $475 million in the period from last year’s $313 million. Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) saw an 18.2% increase from the same period the previous year. The half-year EBITDA margin stood at 36.7%.
The company’s overall revenue in the Middle East, Europe, and Africa (MEA) saw a 7.5% increase to $3.2 billion, benefitting from a full contribution from Ukraine’s TIS terminals and new port concession in Angola. Meanwhile, the Asia Pacific and India regions saw a 121% revenue increase to $789 million. Revenues climbed 27.6% in Australia and the Americas to $998 million.
According to DP World, market conditions in the Asia Pacific and India regions were strong particularly in India as container volumes recovered by 19.5% year-on-year. The growth in revenue in the regions was buoyed by the acquisitions of KRIL in India and Unico in South Korea.
“We are delighted with the strong set of first-half results with adjusted EBITDA growing 18.2% and attributable earnings rising 51.9%,” said Sultan Ahmed Bin Sulayem, DP World Group Chairman and CEO, in a statement. Sulayem, who joined the behemoth in 1982, ranked 14th on Forbes Middle East’s 2021 Top CEOs in the Middle East list.
“This significant growth once again demonstrates that we are in the right locations and a focus on origin and destination cargo will continue to deliver the right balance between growth and resilience.”
According to Sulayem, the company’s recent acquisitions of Imperial Logistics and Syncreon will offer the company a better set of supply chain solutions. “By leveraging our best-in-class infrastructure across inland logistics, ports and terminals, economic zones and marine logistics network, DP World aims to lower inefficiencies and provide improved connectivity in fast growing trade lanes such as Asia, Middle East & Africa,” he added.
DP World invested $687 million in its existing portfolio in the first half, adding capacity in key markets.
In January 2021, the global port operator partnered with Dubai Airports, Emirates Skycargo and the International Humanitarian City to create the Vaccine Logistics Alliance to distribute two billion COVID-19 vaccine doses worldwide.
Meanwhile, it started operating the multipurpose terminal in Luanda, Angola during the first half. As the fifth largest economy in Africa, Luanda is one of the company’s key ports that handles all cargo. It also announced the 50-year concession agreement and development of Ndayane terminal in Senegal.
In July, DP world acquired Syncreon, which is located across 91 sites in 19 countries, for an enterprise value of $1.2 billion. The US-based global logistics provider will be able to provide specialized value-added warehousing and distribution solutions to DP World such as manufacturing, export packaging, transportation management, reverse/repair, and fulfilment services.