Dubai’s DP World posts 10% fall in H1 profit, flags uncertain trade outlook

DUBAI: Dubai’s state-owned ports giant DP World said on Thursday its first-half profit fell nearly 10% from a year earlier, even as revenue climbed nearly 14%, and flagged an uncertain outlook for trade.

Profit attributable to DP World’s owners in the six months to June was down 9.7% at $651 million from a year earlier, when the port operator posted record profit of $721 million.

“While the near-term trade outlook may be uncertain due to macroeconomic and geopolitical factors, the solid financial performance of the first six months positions us well to deliver a steady set of full-year results,” Chairman and Chief Executive Sultan Ahmed Bin Sulayem said in a filing.

“We remain optimistic about the medium to long-term prospects of the industry and DP World’s capacity to consistently generate sustainable returns.”

Revenue in the first half jumped 13.9% year-on-year to just over $9 billion “as the Group benefitted from the full year contribution of acquisitions,” Yuvraj Narayan, deputy CEO and chief financial officer, said in the statement.

DP World’s consolidated throughput ticked up 0.4% to just over 23 million, of which 11.59 million was in the second quarter, up 0.1% from a year earlier.

Adjusted gross debt - excluding bank overdrafts and loans from non-controlling shareholders - rose to $19.2 billion from $18.5 billion at the end of 2022. Net debt was at $15.8 billion at the end of June.