DP World's 2019 profits tumble 8.3pc to US$1.2b after acquisitions
DUBAI's global port operator DP World suffered an 8
DUBAI's global port operator DP World suffered an 8.3 per cent decrease in full-year profit attributable to owners, after separately disclosed items, to US$1.19 billion.
However, annual revenue surged by 36 per cent on a reported basis to $7.68 billion, compared to $5.6 billion in 2018, mainly on the back of acquisitions, including P&O Ferries in the UK, Topaz Energy & Marine in the United Arab Emirates, and two terminals in Chile, reported Gulf Business, UK.
Capital expenditures topped $1.15 billion in the year ending 2019, though capital expenditure for 2020 is pegged at $1.40 billion with investments planned in UAE, Prince Rupert in Canada, London Gateway, Jeddah in Saudi Arabia, Callao in Peru, Sokhna in Egypt and Berbera in Somaliland.
It also reported a 30-year concession renewal at Jeddah Islamic port in Saudi Arabia.
In 2019, gross global capacity was at 91.8 million TEU. Consolidated capacity was at 54.2 million TEU.
DP World's Posorja, the only deep-water port in Ecuador, with a capacity of 750,000 TEU opened in October 2019 and was reported to be on-budget.
DP World Group chairman Sultan Ahmed Bin Sulayem commented: 'DP World is pleased to report like-for-like earnings growth of 5.4 per cent in 2019 and attributable earnings of $1,328 million. Adjusted EBITDA grew 17.7 per cent to $3,306 million with margins at 43 per cent on a reported basis and 49.6 per cent on a like-for-like basis.'
He continued: 'The near-term outlook remains a cause for concern with global trade disputes, Covid-19 outbreak and regional geopolitics, causing disruption to trade.'