DP World Reports Revenue Growth of 6.6% in 2023

DP World Reports Revenue Growth of 6.6% in 2023

DP World Limited has announced resilient financial results for the year ended 31 December 2023.

On a reported basis, revenue grew by 6.6% to $18,250 million and adjusted EBITDA rose by 1.9% to $5,108 million with a healthy adjusted EBITDA margin of 28.0%.

Results Highlights

 - Revenue increased by 6.6% to $18,250 million

- Revenue growth of 6.6% was supported by Drydocks World (+$0.4 billion) and full year consolidation benefit of Imperial Logistics acquisition (+$0.9 billion) with like-for-like growth driven mainly from our Ports & Terminals and Logistics business.

Adjusted EBITDA increased by 1.9% to $5,108 million

- Adjusted EBITDA grew 1.9% and EBITDA margin for the year stood at 28.0%. Like-for-like adjusted EBITDA margin stood at 28.9%.

Profit for the year decreased by 17.7% to $1,514 million

- Profit for the year decreased by 17.7% mainly due to higher finance costs.

Robust cash generation

- Cash generated from operating activities increased by 2.9% to $4,579 million in 2023 ($4,451 million in 2022).

-Leverage (Net debt to adjusted EBITDA) on a pre-IFRS16 basis increased to 3.5x (FY2022: 2.7x) due to higher net debt. On a post-IFRS16 basis, net leverage stands at 3.8x (FY2022: 3.0x).

- DP World’s financial policy remains unchanged – to manage the balance sheet at below 4.0x Net Debt to EBITDA (pre IRFS 16) and to retain a strong investment grade rating.

Selective investment in key strategic growth markets

- Capital expenditure of $2,112 million ($1,715 million in 2022) was invested across the existing portfolio.

- Capital expenditure budget for 2024 is approximately $2.0 billion to be invested mainly in Jebel Ali (UAE), London Gateway (United Kingdom), Inland logistics (India), Dakar (Senegal), East Java (Indonesia), Callao (Peru) and Jeddah (Saudi Arabia).

DP World focused on driving revenue synergies and building long-term relationships with cargo owners

- Enhanced logistics portfolio offers value-add 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.

- Group is well-positioned to capitalize on the growing demand for customised solutions in the logistics industry.

Committed to transition to net zero in line with UAE 2050 Initiative

- 13% decarbonisation in Scope 1 and Scope 2 carbon emissions

- Committed to investing more than $500 million to reduce CO2 emissions in the next 5 years.

Resilient 2023 Performance, Outlook Remains Uncertain

- Solid 2023 performance but outlook remains uncertain due to heightened geopolitical and macroeconomic headwinds.

- DP World remains positive on the medium to long-term outlook for global trade and is focused on delivering integrated supply chain solutions to cargo owners to drive sustainable returns.

DP World Group Chairman and CEO, Sultan Ahmed bin Sulayem, expressed satisfaction with stable results, noting a 1.9% increase in adjusted EBITDA to $5.1 billion amidst challenging geopolitical and macroeconomic conditions. He highlighted strategic focus on high-margin cargo, integrated supply chain solutions, and cost optimization as key drivers of success, laying a foundation for sustainable growth. Bin Sulayem emphasized the resilience of Logistics businesses, attracting more cargo owners with customized solutions and strategic investments in high-growth sectors. Despite uncertainties, he remains optimistic about sustained robust performance and DP World's capacity to deliver consistent returns in the medium to long term.

News Source: Dubai Media Office

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