DP World sees record revenue, but profit slips

Container terminal operator DP World saw record revenue in 2024, but overall profit weakened amid higher finance costs and a challenging global economic environment.

Privately held DP World of Dubai in a release said revenue was $20 billion in 2024, up 9.7% from the previous year. Adjusted earnings before interest, taxes, depreciation and amortization, pretax profit, was a record $5.5 billion, growing 6.7% year on year with a robust margin of 27.2%. Earnings before interest and taxes, or operating profit, was $3.36 billion, up 10.2% from $3.06 billion.

Ports and terminals revenue per twenty-foot equivalent unit increased 13.9% on a like-for-like basis with strong growth from the Middle East and Americas. 

But headwinds hit the company’s overall profit at $1.5 billion, which fell 2% y/y. The company said this was due primarily to higher finance costs, and supply chain issues that raked global trade. Profit directly attributable to owners experienced a substantial decline of over 27%, indicating increased financial and operational pressures on the company.

The company’s container handling capacity surpassed 100 million TEUs in 2024, supported by strategic capital expenditure of $2.2 billion focused on key growth markets such as the United Arab Emirates and India. Looking ahead, DP World has earmarked $2.5 billion for its 2025 budget, targeting further expansion into new regions and enhancements to existing infrastructure.

In response to evolving market demands, DP World said it is also intensifying its focus on logistics and integrated end-to-end supply chain solutions. 

The company reporting improved cash flow from operating activities, which increased by 18.9% to $5.5 billion.

Find more articles by Stuart Chirls here.

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