Port operator DP World H1 profit falls 56% as container volumes slump

Dubai state-owned DP World made a profit of $333mln in the January-June period

  
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

DUBAI  - Global port operator DP World reported a 56% slump in first-half profit on Wednesday as it handled fewer container volumes and reiterated that its outlook was uncertain due to the COVID-19 pandemic.

Some cities are reintroducing restrictions after a recent rise in coronavirus infections, which earlier this year shut cities and factories, leading to global supply chain disruptions.

Dubai state-owned DP World made a profit of $333 million in the January-June period, compared with $753 million a year earlier, it said in a statement. Revenue grew 18% to $4.1 billion.

Container volumes declined by 5.3% to 33.8 million.

Chairman Sultan Ahmed bin Sulayem said the company had performed better than expected, although cautioned the outlook was uncertain because of the health crisis.

“We remain positive on the medium to long-term fundamentals of the industry,” he said.

The Dubai government this year bought back shares in DP World it did not already own, returning the company to full state ownership.

(Reporting by Alexander Cornwell; Editing by Aditya Soni) ((Alexander.Cornwell@thomsonreuters.com;))


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