DP World Limited has announced the financial results for the year ended 31st December, 2023.
On a reported basis, the company’s revenue grew by 6.6 percent to US$18.25 billion and adjusted EBITDA rose by 1.9 percent to $5.108 billion with a healthy adjusted EBITDA margin of 28.0 percent.
The revenue growth was supported by Drydocks World (+$400 million) and the full-year consolidation benefit of the Imperial Logistics acquisition (+$900 million), with like-for-like growth driven mainly by the Ports and Terminals and Logistics business.
DP World’s adjusted EBITDA grew 1.9 percent to $5.108 billion, and the EBITDA margin for the year stood at 28.0 percent. The like-for-like adjusted EBITDA margin stood at 28.9 percent, while the profit for the year decreased by 17.7 percent to $1.514 billion, mainly due to higher finance costs.
The cash generated from the company’s operating activities increased by 2.9 percent to $4.579 billion in 2023 ($4.451 billion in 2022).
DP World logged a 13 percent decarbonisation in Scope 1 and Scope 2 carbon emissions, with a commitment to invest more than $500 million to reduce CO2 emissions in the next five years.
DP World Group Chairman and CEO, Sultan Ahmed bin Sulayem, stated, “We are pleased to report stable results, with adjusted EBITDA increasing by 1.9 percent to $5.1 billion. This achievement is particularly noteworthy considering the significant challenges posed by a deteriorating geopolitical landscape and challenging macroeconomic conditions.
“Our strategic focus on high-margin cargo, end-to-end integrated supply chain solutions, and diligent cost optimization have played a pivotal role in securing these results. This strategy has proven effective during these testing times and lays a solid foundation for our sustainable long-term growth and returns.
“Our Logistics businesses have demonstrated resilience in this demanding economic landscape, attracting a growing number of cargo owners to our platform. The positive feedback for our end-to-end products underscores the value of our customised solutions, empowering cargo owners to conduct trade more efficiently.
“Strategic investments in high-growth sectors enable us to offer value-added solutions, and we remain committed to continually enhancing our logistics platform. This includes addressing supply chain inefficiencies and improving connectivity in critical trade lanes to better serve cargo owners.”
“Overall, we delivered a steady performance in 2023, and despite the uncertain start to 2024 with the ongoing Red Sea crisis, our portfolio has continued to demonstrate resilience. The outlook remains uncertain due to the challenging geopolitical and economic environment. Nevertheless, we anticipate our portfolio will sustain robust performance, and we maintain a positive outlook on the medium to long-term fundamentals of the industry and DP World’s capacity to deliver sustainable returns consistently,” he said, in conclusion.
