DP World reports ‘steady performance’ overall in 2023

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Earlier this month DP World Limited announced resilient financial results for the year ended 31 December 2023. On a reported basis, revenue grew by 6.6% to $18,250 million and adjusted EBITDArose by 1.9% to $5,108 million with a healthy adjusted EBITDA margin of 28.0%. Profit for the year decreased by 17.7% to $1,514 million mainly due to higher finance costs.

Revenue growth of 6.6% was supported by Drydocks World (+$0.4 billion) and full year consolidation benefit of Imperial Logistics acquisition (+$0.9 billion) with like-for-like growth driven mainly from the group’s Ports & Terminals and Logistics business.

Sultan Ahmed Bin Sulayem, DP World Group Chairman and CEO, said: “We are pleased to report stable results, with adjusted EBITDA increasing by 1.9% to $5.1 billion. This achievement is particularly noteworthy considering the significant challenges posed by a deteriorating geopolitical landscape and challenging macroeconomic conditions.

“Our strategic focus on high-margin cargo, end-to-end integrated supply chain solutions, and diligent cost optimisation have played a pivotal role in securing these results. Not only has this strategy proven effective during these testing times, but it also lays a solid foundation for our sustainable long-term growth and returns.

“Our Logistics businesses have demonstrated resilience in this demanding economic landscape, attracting a growing number of cargo owners to our platform. The positive feedback for our end-to-end products underscores the value of our customised solutions, empowering cargo owners to conduct trade more efficiently.

“Strategic investments in high-growth sectors enable us to offer value-added solutions, and we remain committed to continually enhancing our logistics platform. This includes addressing supply chain inefficiencies and improving connectivity in critical trade lanes to better serve cargo owners.

“Overall, we delivered a steady performance in 2023, and despite the uncertain start to 2024 with the ongoing Red Sea crisis, our portfolio has continued to demonstrate resilience. The outlook remains uncertain due to the challenging geopolitical and economic environment. Nevertheless, we anticipate our portfolio will sustain robust performance, and we maintain a positive outlook on the medium to long-term fundamentals of the industry and DP World’s capacity to deliver sustainable returns consistently.”

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