Ports operator DP World warns of uncertain trade as profit falls

Dubai — DP World, a Dubai-owned ports and logistics company, reported a 28% fall in annual profit on Thursday, partly due to higher finance costs, and highlighted that global trade uncertainties and geopolitical risks were clouding its outlook.

Profit attributable to the owners, after separately disclosed items, dropped to $591m from $820m a year earlier, DP World said in a statement.

“While the year has started on a positive note, global trade remains in flux due to ongoing geopolitical challenges,” chair and CEO Sultan Ahmed bin Sulayem said.

DP World, which manages ports in countries from Britain to Peru, as well as operating warehousing and logistics parks, said overall revenue rose 9.7% to $20bn, partly driven by an improved performance at its ports and terminals division.

In the Middle East, Europe and Africa, revenue grew 5.3% as strong results in the United Arab Emirates and Africa offset a weaker performance at Saudi Arabia’s Jeddah port and at DP World’s European Unifeeder business due to Red Sea disruption.

Yemen’s Houthis said they would resume attacks on Israeli ships passing through the Red and Arabian seas, the Bab al-Mandab Strait, and the Gulf of Aden, ending a period of relative calm since January.

Disruption from Houthi attacks targeting regional shipping lanes has forced firms into longer and more expensive journeys around Southern Africa. The Iran-aligned group has attacked more than 100 ships since November 2023, in solidarity with the Palestinians.

DP World plans to deploy a total of about $2.5bn this year, investing in its flagship Jebel Ali port in Dubai and other assets, including the London Gateway port.

Reuters