Dubai-based port and terminal operator DP World reported a profit attributable to owners of $313 million for the first half of 2020, a decrease of 58.5 % from the last year’s equivalent of $753 million.
However, the company reported a revenue growth of 17.7 % on a reported basis having booked $4.07 billion in revenue for the period.
Like-for-like revenue decreased by 11.6% and down 3.4% excluding Emaar land sale in 2019.
DP World said the results were better than expected having in mind the relentless impact of COVID-19 on the world trade.
“ The Covid-19 outbreak has undoubtedly resulted in one of the most challenging periods in the history of our industry. Our gross volumes have declined by 3.9% in 1H2020 which compares favourably against an estimated industry decline of 10%. However, our like-for-like EBITDA6, excluding land sale in the prior period, has grown by 1.1% during this period which demonstrates that we have managed costs efficiently,” DP World Group Chairman and CEO, Sultan Ahmed Bin Sulayem , said .
“ This outperformance once again demonstrates that we are in the right locations and a focus on origin and destination cargo will continue to deliver the right balance between growth and resilience. “
Moving forward, DP World believes that the outlook remains uncertain, but trade is expected to recover when economies re-open.
“Overall, we are encouraged that our business has performed better than expected given the Covid-19 pandemic and, while the outlook is still uncertain, we remain positive on the medium to long-term fundamentals of the industry,” Bin Sulayem said.
During the period the company raised $1.5 billion through the issuance of the perpetual hybrid bond, which are used to pre-pay debt of Port and Free Zone World (PFZW), parent of DP World, post half-year.
DP World said it was committed to a strong investment grade rating in the medium term.
The port operator’s capital expenditure stood at $552 million invested across the existing portfolio during the first half of the year.
Capital expenditure guidance for 2020 is for approximately $1.0 billion with investments planned into UAE, London Gateway (UK), Berbera (Somaliland), Sokhna (Egypt), and Caucedo (Dominican Republic).