DP World sets capex at $2bn despite ‘uncertain’ outlook

Wam

The global ports operator DP World has forecast a capital investment of $2 billion in 2024 despite an “uncertain” outlook because of the challenging geopolitical and economic environment.

The proposed investment will be spread across Jebel Ali in Dubai, London Gateway in the UK, Inland Logistics in India, Dakar in Senegal, East Java, Congo, Peru, and Jeddah in Saudi Arabia.

The company’s net profit fell 18 percent year on year to $1.5 billion last year after higher finance costs.

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Revenues rose 6.6 percent year on year to $18 billion, supported by income from Drydocks World, consolidation benefits from the acquisition of South Africa’s Imperial Logistics and growth in the ports and terminals and logistics businesses.

Adjusted ebitda rose by nearly 2 percent year on year to $5 billion with ebitda margin at 28 percent. Cash generated rose 3 percent to $4.6 billion in 2023, from $4.4 billion in 2022.

DP World logged a 13 percent reduction in its carbon emissions, as part of its decarbonisation drive. The company said it plans to invest more than $500 million to reduce CO2 emissions in the next five years.

The group chairman and CEO, Sultan Ahmed bin Sulayem, said the stable results come despite the significant challenges posed by a deteriorating geopolitical landscape and challenging macroeconomic conditions.

“Despite the uncertain start to 2024 with the ongoing Red Sea crisis, our portfolio has continued to demonstrate resilience,” he said.