Terminal operator DP World has seen its bottom line slip due to greater expenditure caused by rising finance costs.
Profit for 2024 rang in at $1.5bn, a dip of 2% from the previous year, as higher corporate debt and interest on lease expenses took a toll.
The Dubai-headquartered company’s net finance costs were $1.4bn in 2024 versus $1.1bn in 2023.
Sultan Ahmed bin Sulayem, chairman of DP World, said he was proud of the results, given the complex geopolitical landscape globally.
He pointed to a record revenue of $20bn, up by nearly a one-tenth year on year.
This was due to “improved performance from ports and terminals and contributions from new acquisitions and concessions”.
While the government-owned company had shown a strong financial performance in 2024, “the outlook remains uncertain due to geopolitical risks and changing global trade landscape”, it said.
“In 2024, the global landscape was shaped by rising geopolitical tensions, with the Red Sea crisis presenting a significant challenge to global supply chains,” the chairman said.
DP World’s net profit attributable to shareholders before disclosed items in 2024 tumbled 27.2% to $751m.
This was due to a “change in its profit mix coupled with an increase in minority interests in Jebel Ali (United Arab Emirates)”.
Growth through acquisitions, new locations
DP World’s capital expenditure rose 4.8% to $2.2bn in 2024.
This comprised $1.2bn spent on ports and terminals, $652m on logistics and parks and economic zones and $327m on marine services.
DP World said its ports and terminals’ capacity had exceeded 100m teu due to “selective infrastructure investment in key growth markets”.
“The Americas, Asia Pacific and sub-Saharan Africa were key growth drivers, while Jebel Ali continued to deliver solid performance, reinforcing its importance within our global network,” bin Sulayem said.
He added that the growth achieved came about despite some terminals facing challenges due to the Red Sea crisis.
In 2025, DP World plans to budget $2.5bn for investing in the UAE’s Jebel Ali, Drydocks World and Jebel Ali Freezone; India’s Tuna Tekra; the UK’s London Gateway; Senegal’s Ndayane; Saudi Arabia’s Jeddah and DP World Logistics’ global operations.
The P&O Ferries owner said it would continue to invest in its portfolio “through targeted bolt-on acquisitions” and “expand into new locations”.
“We maintain a positive medium-term outlook, supported by strong industry fundamentals and DP World’s ability to deliver sustainable, long-term returns,” the company said.
