Dubai DP World 2021 profit rises; warns of geopolitical uncertainty

Dubai-based DP World has posted higher profit for 2021 supported by new acquisitions but the global port operator remained mindful of geopolitical uncertainty in 2022.

The maritime firm, one of the world’s largest, reported a total attributable profit after separately disclosed items of $896 million, 6 percent higher year-on-year. Adjusted EBITDA (earnings before interest, tax, depreciation and amortisation) rose over 15 percent to $3.8 billion.

In a filing on Nasdaq, Dubai DP World said its revenue for the period grew 26.3 percent supported by acquisitions and new concessions including Angola, Unico and Transworld.

It said like-for-like containerised revenue up 14.2 percent driven by volume growth.

“Overall, we are pleased with the 2021 performance and looking ahead to 2022, we expect our portfolio to continue to deliver growth and, while the year has started encouragingly, we remain mindful that the geopolitical uncertainty, Covid-19 pandemic, continued supply chain disruptions and rising inflation could hinder the global economic recovery,” said group chairman and Chief Executive Officer Sultan Ahmed Bin Sulayem.

He said the company was making progress on its capital recycling programmes and is well positioned to deliver on its 2022 combined (DP World and PFZW) leverage target of below 4.0x net adjusted debt/EBITDA ratio by the end of 2022.

The port operator, which reverted to being a state holding after delisting from Nasdaq Dubai stock exchange, reported capital expenditure of $1.39 billion ($1.07 billion in 2020) invested across the existing portfolio.

For 2022, it gave capital expenditure guidance of up to $1.4 billion with investments planned into UAE, Jeddah (Saudi Arabia), London Gateway (UK), Berbera (Somaliland), Sokhna (Egypt), Indonesia and Callao (Peru).

(Reporting by Brinda Darasha; editing by Daniel Luiz)


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