DP WORLD-

Dubai-based port operator DP World’s bottom line dropped 35.6% y-o-y to USD 570 mn in 1H 2024 on the back of the shipping crisis in the Red Sea, according to its financial statement(pdf) released on Thursday. The company’s top line saw a 3.3% y-o-y increase during the period to USD 9.3 bn.

Behind the numbers: The firm attributed the stronger topline to higher revenues from its ports and terminals segment, which saw a 14.8% y-o-y increase to USD 3.6 bn in 1H 2024. The logistics segment reported a 2% y-o-y decline in revenues to USD 3.8 bn, while the marine services sector witnessed a 5% y-o-y dip in revenues to USD 1.9 bn.

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Red Sea disruptions main culprit: DP World’s Middle East, Europe, and African markets saw a 7.1% y-o-y decline in net income to USD 1.3 bn on the back of disruptions in the Red Sea. However, revenues from those markets were up 1.0% to USD 6.5 bn during the period as the disruptions were partially offset by robust gains from ports and terminals across UAE, Africa, and Europe.

What they said: “While the near-term trading outlook remains uncertain due to macroeconomic and geopolitical headwinds, the resilient financial performance of the first half and the positive momentum as we enter the second half, positions us well to deliver stable full year adjusted EBITDA. We remain optimistic about the medium to long-term prospects of the industry and DP World’s ability to deliver sustainable returns consistently,” DP World Group Chairman and CEO Sultan Ahmed Bin Sulayem was quoted as saying by Dubai Media Office.

YET- DP World has high hopes for the rest of the year, anticipating a “solid pipeline” of new business for its logistics division, coupled with signs of recovery at several ports affected by the Red Sea crisis, the port operator told Reuters.

Some high notes for the port operator: DP World was among seven major firms who managed over 40% of global port throughput in 2023. Dubai is also investing AED 2.1 bn to expand the DP World-operated London Gateway, and DP World is looking to develop berths five, six, and seven at London Gateway to meet the additional capacity needs expected in UK markets starting 2027. The company also recently inked an MoU with the Dubai Municipality to develop the world’s largest logistics hub for foodstuffs, fruit, and vegetable trade.

GULF NAV-

Dubai-listed maritime firm Gulf Navigation Holding (GulfNav) posted a 5.7% y-o-y decline in net income to AED 13.2 mn in 2Q 2024, its financial results (pdf) showed. Its revenues dipped 47.5% y-o-y to AED 13.6 mn during the period.

On a 1H basis: GulfNav’s net income was down 11.2% y-o-y to AED 24.7 mn in 1H 2024, while the firm’s revenues fell 42.2% y-o-y to AED 37.5 mn, the disclosure noted.

A key highlight during the year: GulfNav snapped up Polimar Holding’s 40% stake in its maritime services subsidiary Gulf Navigation Polimar Maritime earlier this year in a USD 1 mn transaction.

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