Dubai-based ports operator DP World has reported an 18 percent year-on-year rise in profits and growing container volumes in the first half of 2018, the company announced on Thursday.
In its financial results, DP World noted that the company’s net profit attributable to shareholders rose to AED 2.36 billion ($642 million), while revenue rose 14 percent on a reported basis and 3 percent on a like-for-like basis to $2.62 billion.
“This robust performance has been delivered in an uncertain trade environment, once again highlighting our operation excellence and the resilience of our portfolio,” DP World chairman Sultan bin Sulayem said.
According to the company, gross volume rose by 4.8 percent to 35.6 billion twenty foot equivalent units (TEUs), with particularly strong performances from the company’s terminals in Europe and Australia.
In the statement, Sulayem said that the company has “made good progress in delivering our strategy of strengthening our portfolio of complementary and port related business with approximately $1,400 million worth of acquisitions announced recently.”
“These acquisitions offer strong growth opportunities and enhance DP World’s presence in the global supply chain as we continue to diversify our revenue base and look at opportunities to connect directly with the owners of cargo and aggregators of demand,” he added.
Looking to the future, Sulayem said that the company’s strong balance sheet and high levels of cash flow will allow it to invest in the growth of its current portfolio, “and the flexibility to make new investments should the right opportunities arise.”
“Going forward, we aim to integrate our new acquisitions and we continue to extend our core business into port-related, maritime, transportation and logistics sectors with the objective of removing inefficiencies in global trade, improving the quality of our earnings and driving returns,” he said.
However, recent changes in trade policies and “geopolitical headwinds in some regions”, he added, continue to pose challenges for the container market.
“However, the robust financial performance of the first six months also leaves us well placed for 2018 and we expect to see increased contributions from our recent investments in the second half of the year,” he said.
Subscribe to Arabian Business' newsletter to receive the latest breaking news and business stories in Dubai,the UAE and the GCC straight to your inbox.