|22 August, 2019

DP World's shares surge on rising profit and revenue

DP World's shares were the top performers on the Dubai Financial Market, adding 5.04 percent in early trading on Thursday by 10:40 GST

Image used for illustrative purpose. Terminal tractors line up to offload their containers into a cargo ship at DP World's fully automated Terminal 2 at Jebel Ali Port in Dubai, United Arab Emirates, December 27, 2018.

Image used for illustrative purpose. Terminal tractors line up to offload their containers into a cargo ship at DP World's fully automated Terminal 2 at Jebel Ali Port in Dubai, United Arab Emirates, December 27, 2018.

REUTERS/ Hamad I Mohammed

DP World, one of the world’s largest port operators, reported a higher net profit at $753 million for the first half of the year 2019, triggering a rally in the company’s shares.

The company’s net profit attributable to owners rose to $753 million compared to $593 million in H1 2018, a 26.98 percent increase. Its shares rose 5.04 percent in early trading on Thursday by 10:40 GST.

DP World’s H1 2019 revenue increased 31.56 percent to $3.46 billion, compared to $2.63 billion for the same time last year.

DP World Group Chairman and CEO, Sultan Ahmed Bin Sulayem, said in an announcement accompanying the results: “This strong financial performance has been delivered in an uncertain trade environment, once again highlighting the strength of our portfolio.”

“We have invested significantly across our Ports, Logistics & Maritime Services businesses,” he added.

“Our balance sheet remains strong, and we continue to generate high levels of cash flow, which gives us the ability to invest in the future growth of our current portfolio. Going forward, we aim to integrate our new acquisitions and deliver synergies with the objective of providing smart end-to-end solutions, which will improve the quality of our earnings and drive returns,” Bin Sulayem said.

“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,” he ended.

(Reporting by Gerard Aoun; Editing by Seban Scaria)

(gerard.aoun@refinitiv.com)

Our Standards: The Thomson Reuters Trust Principles

Disclaimer: This article is provided for informational purposes only. The content does not provide tax, legal or investment advice or opinion regarding the suitability, value or profitability of any particular security, portfolio or investment strategy. Read our full disclaimer policy here.

© ZAWYA 2019

More From Equities