DP World revenue grows 13.9% to $9 billion in first half of 2023

DP World Limited has announced resilient financial results for the first six months to 30th June 2023. On a reported basis, revenue grew by 13.9% to $9 billion and adjusted EBITDA grew by 7.0% to $2.6 billion with adjusted EBITDA of 28.9%.

DP World Group Chairman and CEO, Sultan Ahmed Bin Sulayem, commented, “We are pleased to share a resilient set of results for the first half of 2023, with our adjusted EBITDA enhancing by 7.0% to surpass $2.6 billion.

Despite facing a softer container market and weakened freight rates amid challenging economic conditions, our focus on high-margin cargo, end-to-end bespoke supply chain solutions and cost optimization has been crucial in securing these results.

This strategy has not only been effective during these challenging times but also lays the foundation for our sustainable long-term growth and returns.

Our logistics vertical has demonstrated robustness in this demanding economic landscape, attracting more cargo owners to our platform.

The positive feedback to our end-to-end product emphasis the value of our customised solutions enables customers to conduct trade more effectively. Strategic investments in high-growth sectors enable us to provide value-added solutions, and we remain committed to continuously enhancing our logistics platform. This includes addressing supply chain inefficiencies and enhancing connectivity in crucial trade lanes to serve cargo owners better.

Notably, we continue to make substantial progress towards our 2050 net zero carbon target. Our recent investment in renewable energy through the I-REC programme has significantly cut DP World UAE business carbon emissions by 47%. We are confident of achieving our goal to cut CO2 emissions by 700k tonnes which accounts for approximately 22% of our total emission within the next five years.

In summary, our balance sheet remains robust, and we continue to generate high levels of cash flow, which provides us the flexibility to invest in the growth of our existing portfolio and new investment opportunities when they arise. While the near-term trade outlook may be uncertain due to macroeconomic and geopolitical factors, the solid financial performance of the first six months positions us well to deliver a steady set of full-year results. We remain optimistic about the medium to long-term prospects of the industry and DP World’s capacity to consistently generate sustainable returns.”

DP World expects to add approximately 3 million Twenty-Foot Equivalent Units (TEUs) of new container handling capacity by the end of the year, adding much needed infrastructure and capacity to boost global supply chain resilience.

The global trade enabler currently manages approximately 9% of the world’s handling capacity, putting it among the top five global port operators. The expansions will take its total gross capacity to 93.6 million TEUs, helping meet growing demand in key trade markets.

Supply chain advisors, Drewry, forecast global container throughput will grow to 932 million TEU by 2025, up from 858 million TEU in 2021. The firm’s capacity expansion plans come at a vital time with inflation, increased cost of living and geopolitical uncertainties causing concern about global trade and fuelling demand for faster, more resilient supply chain solutions.

According to DP World’s recent Trade in Transition 2023 report, businesses are still prioritising growth through market expansion, citing the key drivers of export growth in 2023 to be growing demand and expansion of operations into new markets. The report also revealed the use of the technology as the top reason executives remain optimistic about global trade.

Sultan Ahmed Bin Sulayem said, “We are committed to investing in our infrastructure to meet the growing demand for trade. These capacity additions will further strengthen our position as a leading global supply chain solutions provider connecting economies, businesses and consumers around the world.” Tiemen Meester, COO Ports & Terminals, DP World, said, “We have to take a longer-term view of global economics, looking at how demand will change and how we can meet it in the most efficient way. Our medium-term target is to reach 100 million TEU a year, subject to demand.” Alongside the physical expansion, the projects also focus on digitalisation — implementing new technology and modern Terminal Operating Systems.

Separately, DP World’s flagship, Jebel Ali Port recently welcomed Hapag-Lloyd’s Berlin Express ultra-large dual-fuel container ship on its maiden voyage, reinforcing its commitment to innovation and sustainability in the shipping industry.

The Berlin Express is a state-of-the-art vessel with a capacity of 23,600 TEU.

It is the first of 12 dual-fuel vessels ordered by the shipping line which will run on Liquified Natural Gas (LNG), producing significantly lower emissions than traditional marine diesel.

The arrival is a significant milestone for Jebel Ali Port, further solidifying its position as a global trade hub, providing unmatched connectivity to over 180 shipping lines and market access to more than 3.5 billion consumers worldwide.