DP World has seen its first half net profit increase almost 27% to $753m despite geopolitical upheaval and the recent threat to shipping in the Gulf.
The London-listed company said revenue grew almost 32% to $3.4bn supported by acquisitions and growth in non-containerized revenue.
Like-for-like revenue increased by 10.8% driven by growth in non-container revenue.
During the period DP World raised $1.3bn through the issuance of long-term bonds at what it described as “record low rates” in a move that it said further strengthens the balance sheet and offers financial flexibility.
Its ports and terminals portfolio saw the addition of two new assets during the first half – two new assets in Chile, Fraser Surrey Docks8 (Canada) and consolidation of assets in Australia.
DP World’s logistics and maritime investment include acquisition of Pan-European logistics platform of P&O Ferries and OSV player Topaz Marine & Energy.
Capital expenditure of $636m was invested across the existing portfolio during the first half of the year.
DP World said guidance for 2019 remains unchanged at up to $1.4bn with investments planned into UAE, Ecuador, Somaliland, Egypt and the UK’s London Gateway.
Acquisitions were said to have “performed in line with expectations” with Unifeeder delivering in line with expectations and continuing to benefit from “structural changes in the market”.
“ The container trade grew by low single digits in the first half of 2019, but concerns around the trade war continue to weigh on the outlook,” DP World said.
“DP World is pleased to report like-for-like earnings growth of 22% in the first half of 2019 and attributable earnings of $753m,” said DP World chief executive Sultan Ahmed Bin Sulayem.
“This strong financial performance has been delivered in an uncertain trade environment, once again highlighting the strength of our portfolio.
“While the near-term trade outlook remains uncertain with global trade disputes and regional geopolitics causing uncertainty to the container market, the strong financial performance of the first six months also leaves us well placed to deliver full-year results slightly ahead of market expectations.”
