UAE-based global port operator DP World reported a 33% drop in 2023 net profit attributable to the owners after separately disclosed items, to $820 million due to “higher finance costs”.
In 2023, DP Word recorded revenues of $18.25 billion, a 6.6% increase compared to the previous year. The growth was mostly attributed to the success of Drydocks World and the full-year consolidation benefit of the acquisition of Imperial Logistics. Moreover, the company reported like-for-like growth in its ports and terminals, and logistics business.
The company’s EBITDA grew 1.9% to $5.11 billion with an adjusted EBITDA margin of 28%. In addition, the cash generated from operating activities increased by 2.9% to $4.57 billion in 2023 versus $4.45 billion in 2022.
“We are pleased to report stable results, with adjusted EBITDA increasing by 1.9% to $5.1 billion,” said DP World Group Chairman and CEO, Sultan Ahmed bin Sulayem.
“This achievement is particularly noteworthy considering the significant challenges posed by a deteriorating geopolitical landscape and challenging macroeconomic conditions”
“Our strategic focus on high-margin cargo, end-to-end integrated supply chain solutions, and diligent cost optimisation have played a pivotal role in securing these results,” he added. “Not only has this strategy proven effective during these testing times, but it also lays a solid foundation for our sustainable long-term growth and returns.”
DP World had a capital expenditure of $2.1 billion in 2023, which was invested across the existing portfolio. The firm’s capital expenditure budget for 2024 is approximately $2.0 billion to be invested mainly in Jebel Ali (UAE), London Gateway (United Kingdom), Inland logistics (India), Dakar (Senegal), East Java (Indonesia), Callao (Peru) and Jeddah (Saudi Arabia).
Looking ahead, DP World said its financial policy remains unchanged. The company’s goals are to manage the balance sheet below 4.0x net debt to EBITDA (pre IRFS 16) and to retain a strong investment grade rating.
DP World stated that the industry’s outlook remains uncertain due to heightened geopolitical and macroeconomic headwinds.
In January, DP World announced it would develop new ports, terminals, and economic zones as part of a multi-billion deal to expand the logistics capabilities of Gujarat, India.