Dubai-based DP World on Thursday posted a record net profit for H1-2022 supported by higher revenue from acquisitions and growth in high margin cargo. The global port operator warned it expects growth rates to moderate for the rest of the year.
Net profit attributable to shareholders for the period jumped 51% year-on-year (y-o-y) to $721 million, the port operator said in statement.
Revenue came in at $7.93 billion, up over 60%, supported by acquisitions, strong performance of “feedering services and growth in high margin cargo”.
Container revenue per TEU rose over 9% driven by higher demand for storage.
DP World gave capital expenditure guidance for 2022 is up to $1.4 billion with investments planned into UAE, Jeddah (Saudi Arabia), LondonGateway (UK), Sokhna (Egypt), Senegal and Callao (Peru).
Capital expenditure for H1 was $741 million, versus $687 million in 2021, and was invested across the existing portfolio.
The port operator said outlook is uncertain due to geopolitics, higher inflationary environment, currency fluctuations and continued supply chain disruptions. But the company remained positive on medium to long-term outlook for global trade.
Sultan Ahmed Bin Sulayem, Group Chairman and Chief Executive Officer, said the record net profit was a result of the strategy to focus "on high margin cargo and to offer customized supply chain solutions will provide sustainable returns in the long term."
"However, the near-term outlook remains uncertain due to the more challenging macro and geopolitical environment. Consequently, we expect growth rates to moderate in the second half of 2022. Nevertheless, were main positive on the medium to long-term fundamentals of the industry and DP World's ability to continue to deliver sustainable returns.”
In recent months the company raised approximately $9 billion through several transactions, which allowed it to achieve the 2022 leverage target of below 4x Net Debt to EBITDA.
(Reporting by Brinda Darasha; editing by Seban Scaria)