DP World’s revenue grew by 31.9% in the first half of 2019 thanks to strategic acquisitions and a strong performance in the non-containerized segment, according to its latest financial results.
In a statement, the terminal operator said its revenue for the first six months of the year reached US$2.4 billion, which was also a jump of 10.8% on a like-for-like basis.
Consequently, its profit in the same period increased by 26.8% to $753 million and its earnings before interest, taxes, depreciation and amortization (EBITDA) also grew 21.9% compared to the first half of 2018.
In regards to its portfolio of ports and terminals, DP World credited the addition of two new assets in Chile, as well as the Fraser Surrey Docks8, Canada, and consolidation of assets in Australia for its growth.
As well as that, it also referenced the purchase of P&O Ferries and marine logistics operator, Topaz Marine & Energy8, as well as Unifeeder. Other successful projects included the timely opening of Porsorja8, the only deep-water port in Ecuador, which has a capacity of 750,000 TEU.
Despite its strong growth, DP World has said the global trade outlook remains uncertain and pointed out that the container trade grew by single digits so far this year.
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“DP World is pleased to report like-for-like earnings growth of 22% in the first half of 2019 and attributable earnings of $753 million,” Sultan Ahmed Bin Sulayem, CEO, DP World, said.
This strong financial performance has been delivered in an uncertain trade environment, once again highlighting the strength of our portfolio.
“We have continued to make progress on our strategy to become a trade enabler and solutions provider as we look to participate across a wider part of the supply chain. We have invested significantly across our Ports, Logistics & Maritime Services businesses.
“The aim is to connect directly with customers to offer logistics solutions and remove inefficiencies in the supply chain to accelerate trade. We are seeing positive signs of progress in our new businesses that give us encouragement for the future.
“Our balance sheet remains strong, and we continue to generate high levels of cash flow, which gives us the ability to invest in the future growth of our current portfolio.
“Going forward, we aim to integrate our new acquisitions and deliver synergies with the objective of providing smart end-to-end solutions, which will improve the quality of our earnings and drive returns.
“While the near-term trade outlook remains uncertain with global trade disputes and regional geopolitics causing uncertainty to the container market, the strong financial performance of the first six months also leaves us well placed to deliver full-year results slightly ahead of market expectations.”