DP World 2023 revenue up 7%
Profit for 2023 declined 18% to $1.5 billion, mainly due to higher finance costs
DP World reported a seven percent increase in revenue at $18.3 billion for the year ended December 31, 2023.
Profit for 2023 declined 18 percent to $1.5 billion, mainly due to higher finance costs, says an official release.
"Adjusted EBITDA increased by two percent to $5.1 billion, and EBITDA margin for the year stood at 28 percent. Like-for-like adjusted EBITDA margin stood at 28.9 percent."
Sultan Ahmed bin Sulayem, Chairman and CEO, DP World says: "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. 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."
Cash generated from operating activities increased three percent to $4.6 billion in 2023 ($4.5 billion in 2022), the release added.
Capital expenditure of $2.1 billion ($1.7 billion in 2022) was invested across the existing portfolio. "Capital expenditure budget for 2024 is approximately $2 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)."
Sulayem adds: "Despite the uncertain start to 2024 with the ongoing Red Sea crisis, our portfolio has continued to demonstrate resilience. The outlook remains uncertain due to the challenging geopolitical and economic environment. Nevertheless, we anticipate our portfolio will sustain robust performance, and we maintain a positive outlook on the medium to long-term fundamentals of the industry and DP World’s capacity to deliver sustainable returns consistently."
