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Thu 14 Mar 2019 02:04 PM

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Dubai's DP World plans to invest $1.4bn in 2019 after profits rise

Port operator says investment is planned mainly in the UAE, Ecuador, Somaliland, Senegal and Egypt

Dubai's DP World plans to invest $1.4bn in 2019 after profits rise
The global provider runs port operations in over 40 countries.

DP World on Thursday announced plans to invest $1.4 billion in its global ports portfolio this year, up from the $908 million spent last year.

The company said investment is planned mainly into the UAE, Posorja (Ecuador), Berbera (Somaliland), Dakar (Senegal) and Sokhna (Egypt).

The plan comes as the Dubai-based port operator reported a near 20 percent jump in revenue to $5.6 billion during 2018 despite an "uncertain trade environment".

It posted a net profit of $1.27 billion in 2018, compared to $1.21 billion the previous year while gross global capacity stood at 90.8 million TEU, the company said in a statement.

DP World Group chairman and CEO, Sultan Ahmed Bin Sulayem, said: "This robust performance has been delivered in an uncertain trade environment, once again highlighting the resilience of our portfolio.

"We have made good progress in delivering on our strategy of strengthening our portfolio to become a global solution provider and trade enabler with approximately $2.5 billion worth of acquisitions announced in the year.

"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: "Going forward, we aim to integrate our new acquisitions and drive synergies across the portfolio with the objective of removing inefficiencies in global trade, improving the quality of our earnings and driving returns."

The board of DP World has recommended increasing the dividend to shareholders by 5 percent to $365.9 million.

Sulayem said the current year has started with trading in line with expectations and whilst the near-term outlook remains uncertain with the trade war and geopolitical headwinds, he expects the company's portfolio to remain resilient.

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