DP World, one of the world's largest port operators, said its annual profit soared 37 per cent in 2022, on higher revenue growth driven by the solid performance of ports and terminals, and marine services.
Profit attributable to owners of the company, after separately disclosed items during the year, increased to more than $1.2 billion from 2021, DP World said in a filing to Nasdaq Dubai on Thursday.
Revenue for the year surged 59 per cent to more than $17 billion, supported by acquisitions and like-for-like growth, with containerised revenue increasing by 12 per cent on higher demand for ancillary container services.
DP World reported a 3 per cent rise in container volumes last year, handling 79 million 20-foot equivalent units, or TEUs, across its global portfolio, with the Asia-Pacific region and India, growing 6 per cent, Australia and Americas expanding 5 per cent, and the Middle East, Africa and Europe gaining 1.5 per cent.
The global port operator’s adjusted earnings before interest, taxes, depreciation and amortisation (Ebitda) grew 31 per cent to more than $5 billion.
“Our continued focus on high-margin cargo and end-to-end supply chain solutions is the key driver of these results, and we believe this strategy will continue to yield sustainable returns over the long term,” said Sultan bin Sulayem, DP World group chairman and chief executive.
“Cargo owners have responded positively to our end-to-end product offering, as our customised solutions empower customers to trade more effectively … we remain focused on driving revenue synergies through our enhanced logistics platform, lowering inefficiencies throughout the supply chain and improving connectivity in critical trade lanes to deliver value to cargo owners.”
Cash generated from operating activities hit a record $4.45 billion in 2022, an increase of about 21 per cent from a year earlier.
Performance in 2022 exceeded expectations and the start of 2023 has been encouraging, despite uncertainty due to the macro and geopolitical environment, potential trade wars, a higher inflationary environment and currency fluctuations, Mr bin Sulayem said.
“Despite this, we expect our portfolio to continue to deliver a robust performance, and we remain positive on the medium to long-term fundamentals of the industry and DP World’s ability to continue to deliver sustainable returns,” he said.
The company raised more than $8 billion through asset monetisations in 2022, strengthening its balance sheet, which will allow it to continue growing its portfolio and capacity while investing in key growth markets, Mr bin Sulayem said.
DP World had capital expenditure of $1.7 billion last year, compared with $1.39 billion in 2021, that was invested across the existing portfolio.
The company said it expects about $1.7 billion in capital expenditure in 2023 to be invested in the UAE, Jeddah, London Gateway, Dakar, the Democratic Republic of the Congo's Banana port, Peru's Callao and DPW Logistics in South Africa.
DP World said decarbonisation remains a core focus of its transition to net zero by 2050 and it is investing more than $500 million to reduce emissions by 700,000 tonnes in the next five years.