DP World, the Dubai-based ports and logistics operator, reported a significant 28% decline in annual profit, attributing this drop to elevated finance costs and ongoing global trade uncertainties. In its recent statement, the company revealed that profit attributable to owners fell to $591 million from $820 million in the previous year. Despite the rocky financial performance, DP World noted a 9.7% increase in overall revenue, reaching $20 billion.
This growth was largely fueled by improved outcomes in its ports and terminals division. Chairman and CEO Sultan Ahmed bin Sulayem remarked on the mixed outlook, emphasizing that while the year began positively, the global trade landscape remains uncertain due to persistent geopolitical tensions. In the regions encompassing the Middle East, Europe, and Africa, DP World experienced a revenue increase of 5.3%.
Strong performance in the United Arab Emirates and parts of Africa helped mitigate declines in other areas. Specifically, the Jeddah port in Saudi Arabia and DP World’s European Unifeeder business suffered setbacks due to disruptions in the Red Sea. Moreover, the Houthi movement in Yemen recently announced they would renew attacks on Israeli vessels traversing key shipping routes, including the Red and Arabian seas.
This escalation has raised concerns over regional shipping safety and has forced companies to reroute their vessels, leading to longer and costlier journeys. Since November 2023, the Iran-aligned group has attacked more than 100 ships in solidarity with the Palestinians. In response to these challenges, DP World aims to invest about $2.5 billion this year, focusing on enhancing its flagship Jebel Ali port in Dubai and other significant assets like the London Gateway port.