DP World posts record revenue of $20bn
DP World, a global logisitics and shipping leader, reported a record revenue growth of 9.7% to $20 billion in 2024 and adjusted EBITDA of $5.5 billion, an increase of 6.7% with an adjusted EBITDA margin of 27.2%.
The company said it posted a profit of $1.5 billion for 2024, a decrease of 2% mainly due to higher finance costs.
Revenue growth of 9.7% was mainly due to improved performance from Ports and terminals and contributions from new acquisitions and concessions, the company said.
Results highlights
* Ports and terminals revenue per TEU increased 13.9% on a like-for-like basis with strong growth from the Middle East and Americas.
* DP World capacity exceeds 100 million TEU - continued investment in key growth markets
* Capital expenditure of $2.2 billion ($2.1 billion in 2023) was invested across the existing portfolio. Capital expenditure budget for 2025 is approximately $2.5 billion to be invested mainly in Jebel Ali (UAE), Drydocks World and Jebel Ali Freezone (UAE), Tuna Tekra (India), London Gateway (UK), Ndayane (Senegal) and Jeddah (Saudi Arabia).
* DP World focused on driving revenue synergies and building long-term relationships with cargo owners
* Enhanced logistics portfolio offers value-added capabilities in fast-growing markets and verticals.
* DP World aims to deliver supply chain solutions to cargo owners by leveraging its best-in-class infrastructure.
* Cash generated from operating activities increased by 18.9% to $5.5 billion in 2024 ($4.6 billion in 2023).
* Leverage (Net debt to adjusted EBITDA) on a pre-IFRS16 basis decreased to 3.4x (FY2023: 3.7x). On a post-IFRS16 basis, net leverage stands at 4.1x (FY2023: 4.0x).
* Issued a US$100 million blue bond, the first for a corporate from the Central and Eastern Europe, Middle East and Africa (CEEMEA) region, alongside the launch of our Ocean Strategy.
* Against its 2022 base year, the company exceeded its 10.5% Scope 1 and Scope 2 carbon emissions reduction target, and close to 65% of electricity sourced globally today comes from renewable energy.
DP World Group Chairman and CEO, Sultan Ahmed bin Sulayem, commented: "We are proud to report record revenue of $20 billion and record EBITDA of $5.5 billion for 2024, a remarkable achievement given the complex geopolitical landscape. These results demonstrate the benefits of our strategic focus on high-margin cargo, end-to-end integrated supply chain solutions and disciplined cost optimisation.
"This strategy is positioning DP World for sustained long-term growth and value creation. By enhancing efficiency, expanding our capabilities and deepening partnerships, we are building a resilient business, well-equipped to capitalise on new opportunities as global trade evolves.
"We continue to strengthen our logistics platform, attracting more cargo owners with end-to-end, tailored solutions that drive efficiency and improve the flow of trade. The increased demand for our integrated offerings highlights the value we bring to customers seeking optimized, high-performance supply chain solutions.
"Our asset-appropriate strategy, combined with critical infrastructure in key markets, ensures that we scale efficiently while delivering specialized capabilities where they are needed most. Strategic investments in high-growth sectors and emerging trade corridors are expanding our expertise, enabling us to provide value-added solutions. By enhancing connectivity and streamlining supply chains, we are reinforcing DP World's role as a leading trade enabler—helping cargo owners navigate complexity, go to market quicker and build greater supply chain resilience," he said.
"In 2024, we delivered a strong performance, further reinforcing our financial position by reducing net leverage and strengthening the balance sheet. While the year has started on a positive note, global trade remains in flux due to ongoing geopolitical challenges. We remain confident in the strength of our portfolio, which we expect to continue delivering robust performance.
"As part of our long-term strategy, we continue to invest in our portfolio through targeted bolt-on acquisitions, expand into new locations and add high-value capabilities that align with our clients' evolving needs. We maintain a positive medium-term outlook, supported by strong industry fundamentals and DP World's ability to deliver sustainable, long-term returns," he added. - TradeArabia News Service
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