DP World chairman says H1 results show resilience to trade war
DP World on Thursday announced a 10.8 percent rise in revenue for the first six months of 2019 to more than $3.4 billion supported by acquisitions.
Group chairman Sultan Ahmed Bin Sulayem said this was evidence of the resilience of DP World’s global port and logistics network in the face of the intensifying US-China trade war.
“Despite uncertainty from the trade war and challenging regional geopolitical realities, DP World has been able to deliver and excel a broadly impressive performance in the first half of 2019,” he said.
Like-for-like revenue increased, driven by growth in non-container revenue while profit for the period attributable to owners of the company increased by 22.2 percent.
The company said ports and terminals investments during H1 include two new assets in Chile, Fraser Surrey Docks in Canada and the consolidation of assets in Australia.
Logistics and maritime investment include acquisition of Pan-European logistics platform of P&O Ferries and marine logistics operator Topaz Marine & Energy while capital expenditure of $636 million was invested across the existing portfolio during the first half of the year.
DP World said capital expenditure guidance for 2019 remains unchanged at up to $1.4 billion with investments planned into UAE, Ecuador, Somaliland, Egypt and the UK.
Global trade continues to grow, but outlook is uncertain, it said, adding that the container trade grew by low single digits in the first half of 2019, but concerns around the trade war continue to weigh on the outlook.
DP World Group chairman and CEO, Sultan Ahmed Bin Sulayem, said: “DP World is pleased to report like-for-like earnings growth of 22 percent in the first half of 2019 and attributable earnings of $753 million. 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 are seeing positive signs of progress in our new businesses that give us encouragement for the future.
“Whilst 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."