DP World has announced strong financial results for the first six months of 2022, although the economic outlook remains uncertain due to supply chain disruption.
Total revenue for the first half of the year came at $7.93 billion for a growth of 60.4 per cent year-on-year, and 20.1 per cent on a like-for-like basis.
The result was supported by acquisitions, strong performance of feedering services and growth in high margin cargo, according to the company.
With an adjusted EBITDA of $2.44 billion – up 23.6 per cent on a like-for-like basis – and an adjusted EBITDA margin of 30.8 per cent, DP World’s first half 2022 results have come in ahead of expectations according to its latest statement.
Container revenue per TEU increased by 9.2 per cent driven by higher demand for storage, with a total gross throughput of 39.4 million TEU.
“This significant growth demonstrates that our strategy to focus on high margin cargo and to offer customised supply chain solutions will provide sustainable returns in the long term,” said DP World Group Chairman and CEO, Sultan Ahmed Bin Sulayem.
“We continue to invest in high growth verticals and markets to offer compelling supply chain solutions, and by leveraging our best-in-class infrastructure across logistics, ports and terminals, economic zones, digital and marine services, DP World aims to lower inefficiencies and improve connectivity in key trade lanes.
“Overall, the strong first half performance leaves us well placed to deliver improved full year results. However, the near-term outlook remains uncertain due to the more challenging macro and geopolitical environment.
“Consequently, we expect growth rates to moderate in the second half of 2022. Nevertheless, we remain positive on the medium to long-term fundamentals of the industry and DP Worlds ability to continue to deliver sustainable returns.”
In announcing the results, DP World highlighted the importance of its latest acquisition of Imperial Logistics – an addition expected to add significant value to DP World given Imperial’s footprint and strong market access and logistics solutions capability.
Most recently, the company announced a partnership between CARGOES Finance by DP World and TuningBill, the business-to-business neobank.
DP World customers will gain access to TuningBill services through the CARGOES Finance platform.