DP World announced financial results for the first six months to 30 June 2023 with revenue growing by 14 percent to $9,037 million and adjusted EBITDA growing by 7 percent to $2,611 million ($2.6 billion) with adjusted EBITDA margin of 29 percent.

The DP World release reads, “Revenue growth of 14 percent is mainly attributable to the full six months consolidation of Imperial Logistics (2022 – 4 months). Like-for-like growth was driven mainly from the strong performance of Imperial Logistics in Africa and Drydocks World in UAE.”

Adjusted EBITDA grew 7 percent on higher revenue growth and EBITDA margin for the year stood at 29 percent. Like-for-like adjusted EBITDA margin stood at 31 percent. Net cash generated from operating activities stood at $1,951 million 1H 2023 (compared to $1,931 million in 1H 2022).

Leverage (Net debt to adjusted EBITDA) on a pre-IFRS16 basis stands at 2.8x (FY2022: 2.7x). On a post-IFRS16 basis, net leverage stands at 3.2 times compared to 3.0 times in FY2022.

DP World group chairman and CEO, Sultan Ahmed Bin Sulayem, commented, “We are pleased to share a resilient set of results for the first half of 2023, with our adjusted EBITDA enhancing by 7.0% to surpass $2.6 billion. Despite facing a softer container market and weakened freight rates amid challenging economic conditions, our focus on high-margin cargo, end-to-end bespoke supply chain solutions and cost optimization has been crucial in securing these results. This strategy has not only been effective during these challenging times but also lays the foundation for our sustainable long-term growth and returns.”

“Our logistics vertical has demonstrated robustness in this demanding economic landscape, attracting more cargo owners to our platform. The positive feedback to our end-to-end product emphasis the value of our customised solutions enables customers to conduct trade more effectively. Strategic investments in high-growth sectors enable us to provide value-added solutions, and we remain committed to continuously enhancing our logistics platform. This includes addressing supply chain inefficiencies and enhancing connectivity in crucial trade lanes to serve cargo owners better,” he added.

DP World’s credit rating improved by two notches by Fitch to BBB+ with stable outlook and one notch by Moody’s to Baa2 with stable outlook on improved financial performance and a stronger balance sheet.

Capital expenditure of $910 million ($741 million in 1H 2022) was invested across the existing portfolio. Capex split: $412 million ports and terminals, $284 million logistics and parks and economic zones, $187 million marine services and $27 million in head office.

Capital expenditure guidance for 2023 is for approximately $2.0 billion to be invested in UAE, Jeddah (Saudi Arabia), London Gateway (United Kingdom), Dakar (Senegal), Callao (Peru) and DPW Logistics (South Africa).

Outlook remains uncertain

Sulayem concluded, “In summary, our balance sheet remains robust, and we continue to generate high levels of cash flow, which provides us with the flexibility to invest in the growth of our existing portfolio and new investment opportunities when they arise. 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. We remain optimistic about the medium to long-term prospects of the industry and DP World’s capacity to consistently generate sustainable returns.”

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