DP World's H1 2024 revenues reach 9.3 billion amid global challenges

DP World has announced its financial results for the first half of 2024, reporting a 3.3% increase in revenue, reaching US $9.335 billion, despite significant macroeconomic and geopolitical challenges.

The company's strong performance was primarily driven by growth in its Ports & Terminals division, with like-for-like gross container volumes rising by 6.1%, bolstered by robust growth in the Americas, Europe, Asia Pacific, and Jebel Ali.

Financial performance overview

DP World's adjusted EBITDA for the period stood at $2.497 billion, reflecting a slight decrease of 4.3%. This dip was attributed to disruptions in the Red Sea region and ongoing investments in expanding its Logistics platform.

Consequently, the EBITDA margin declined to 26.8%, compared to 28.9% in the first half of 2023.

Despite these challenges, DP World maintained robust cash generation, with $2.091 billion generated from operating activities, slightly down from $2.134 billion in the same period last year.

The company’s balance sheet remains strong, with a pre-IFRS16 leverage ratio of 3.8x, marginally higher than the 3.7x recorded at the end of 2023. On a post-IFRS16 basis, net leverage increased to 4.2 times, compared to 4.0 times in FY 2023.

Strategic investments and future growth

In the first half of 2024, DP World made selective investments in key growth markets, with capital expenditure reaching $994 million, up from $910 million in 1H 2023.

The investment was allocated across various sectors, including $593 million for Ports and Terminals, $278 million for Logistics and Parks, and $122 million for Marine Services.

DP World continues to focus on driving revenue synergies and building long-term relationships with cargo owners.

The company has enhanced its freight forwarding platform, which now covers more than 90% of global trade, offering improved connectivity and value-added services in fast-growing markets. The group is well-positioned to capitalise on the increasing demand for customised logistics solutions.

Commitment to sustainability and future outlook

Aligned with the UAE 2050 Initiative, DP World remains committed to transitioning to net zero. Despite the challenging global environment, the company expressed confidence in delivering an improved adjusted EBITDA performance in the second half of 2024. The resilient performance in 1H 2024, combined with positive momentum moving forward, positions DP World to achieve stable full-year financial results.

Sultan Ahmed Bin Sulayem, Group Chairman and CEO of DP World, commented on the results, emphasising the company’s strategic focus on high-margin cargo, comprehensive supply chain solutions, and cost management. He noted that while the near-term outlook remains uncertain due to external factors, DP World’s strong financial position and continued investments provide a solid foundation for sustainable long-term growth.

"We remain optimistic about the medium to long-term prospects of the industry and DP World’s ability to deliver sustainable returns consistently," said Bin Sulayem.