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Dubai-based port operator DP World ’s bottomline for 2023 dropped 17.7% y-o-y to USD 1.51 bn, according to a company financial statement (pdf) released on Thursday. The company’s top line saw a 6.6% y-o-y boost during the period to USD 18.25 bn, the statement said.
The story behind the numbers: The company attributed the stronger topline to gains from Drydocks World, full year consolidation benefits on the back of its 2022 acquisition of Imperial Logistics, as well as like-for-like growth in the outfit’s core ports, terminals, and logistics operations. Meanwhile the decline in net income was mainly attributable to greater finance costs, DP World said.
The breakdown: The company’s logistics operations where the largest contributor to its topline, and saw a 15.4% y-o-y boost in revenues to USD 7.92 bn, with the full year consolidation of Imperial Logistics’ contribution, and proceeds from land sales at Dubai Maritime City bolstering the unit’s gains. Income from ports and terminals increased 5.1% over the same period to USD 6.4 bn, as a continued focus on high margin cargo improved performance. Meanwhile the company’s marine services division saw a 5.9% decline in performance to USD 3.93 bn, as DP World’s Unifeeder subsidiary saw its returns fall as freight rates normalized.
Looking ahead: The company is looking to invest some USD 2 bn in capital expenditure this year, with most investments allocated to Jebel Ali in Dubai, London Gateway, Inland logistics (India), Dakar (Senegal), East Java (Indonesia), Callao (Peru), and Jeddah (Saudi Arabia). Despite “resilient” performance in 2023, the outlook remains uncertain, DP World said, citing geopolitical and macroeconomic headwinds.
Some 2023 high notes: DP World and India’s Deendayal Port Authority signed a concession agreement in late August 2023 for a new USD 510 mega container terminal at Kandla, Gujarat, with similar agreements also signed throughout the year with partners in the Indian subcontinent, Southeast Asia and elsewhere. The company also launched a USD 1.5 bn 10-year denominated green sukuk issuance in September 2023, with the move being met with strong demand. DP World also inked a lease agreement with RSA Cold Chain for a 100k sqm cold chain facility at DP World’s Jebel Ali Freezone in December.
