DP World is set to deliver stable full-year results in 2024 despite the market's uncertain near-term outlook, which is driven by macroeconomic and geopolitical headwinds.
The end-to-end logistics provider said this is boosted by the "resilient financial performance of the first half" and the positive momentum entering the second half of the year.
DP World said its revenue grew 3.3% to US$9.35 billion during the January-June period, driven by Ports & Terminals.
During the period, the like-for-like gross container volumes grew by 6.1% on the back of strong growth in the Americas, Europe, Asia Pacific, and Jebel Ali.
DP World Group Chairman and CEO Sultan Ahmed Bin Sulayem described DP World's first-half performance as "resilient" as he expressed optimism for the second half of 2024 despite persisting market disruptions.
"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. Nevertheless, our strategic emphasis on high-margin cargo, comprehensive end-to-end supply chain solutions, and stringent cost management have been crucial in achieving this financial performance," he said.
Bin Sulayem noted that in Logistics, DP World's investments have been focused on organically expanding its freight forwarding platform, which now encompasses over 90% of global trade across more than 150 locations worldwide.
Strategic investments in sectors poised for high growth, he noted, also allowed the company to provide value-added services, and we remain dedicated to continuously improving our logistics capabilities — including tackling supply chain inefficiencies and enhancing connectivity in key trade corridors to better support cargo owners.
"In summary, our balance sheet remains strong, and our operations continue to produce substantial cash flow. This financial strength provides the flexibility to further invest in our current portfolio's growth and to seize new investment opportunities as they emerge," the DP World chief executive said.
DP World also maintained its positive long-term outlook for the industry.
"While the near-term trading outlook remains uncertain due to macroeconomic and geopolitical headwinds, the resilient financial performance of the first half and the positive momentum as we enter the second half positions us well to deliver stable full-year adjusted EBITDA," Bin Sulayem said.
"We remain optimistic about the medium to long-term prospects of the industry and DP World’s ability to deliver sustainable returns consistently," he added.
