DP World announces 1H 2024 results
DP World Limited today announces resilient financial results for the first six months to 30 June 2024. On a reported basis, revenue grew by 3.3% to $9,335 million while adjusted EBITDA3 decreased by 4.3% to $2,497 million with an adjusted EBITDA margin of 26.8%.
Like-for-like gross container volumes growth of 6.1% driven by strong growth in Americas, Europe, Asia Pacific, and Jebel Ali.
Adjusted EBITDA decreased slightly by 4.3% due to Red Sea disruption and organic investment in Logistics platform expansion. EBITDA margin for the period stood at 26.8% (1H 2023: 28.9%).
Cash generated from operating activities stood at $2,091 million in 1H 2024 (compared to $2,134 million in 1H 2023). Leverage (Net debt to adjusted EBITDA) on a pre-IFRS16 basis stands at 3.8x (FY 2023: 3.7x). On a post-IFRS16 basis, net leverage stands at 4.2 times compared to 4.0 times in FY 2023.
DP World’s financial policy is to manage the balance sheet at below 4.0x Net Debt to EBITDA (pre IRFS 16) and to retain a strong investment grade rating.
Capital expenditure of $994 million ($910 million in 1H 2023) was invested across the existing portfolio. Capex split: $593 million Ports and Terminals, $278 million Logistics and Parks and Economic Zones, $122 million Marine Services and $1 million in Head Office. Capital expenditure guidance for 2024 is for approximately $2.0 billion to be invested in the UAE including Drydocks World, London Gateway (United Kingdom), Inland logistics (India), Dakar (Senegal), East Java (Indonesia), Callao (Peru), Jeddah (Saudi Arabia), Dar Es Salam (Tanzania) and DP World Logistics (Africa) and Fraser Surrey Docks (Canada).
DP World remains positive on the medium to long-term outlook for global trade and is focused on delivering integrated supply chain solutions to cargo owners to drive sustainable returns. DP World Group Chairman and CEO, Sultan Ahmed Bin Sulayem, commented: “We are pleased to report resilient results, with revenue increasing by 3.3% in the first half of the year, despite challenging macroeconomic conditions. The year 2024 has been marked by a deteriorating geopolitical environment and disruptions to global supply chains due to the Red Sea crisis. In Logistics, our investments have been focused on organically expanding our freight forwarding platform, which now encompasses over 90% of global trade across more than 150 locations worldwide.”
