DP World Sees Profits Soar With Rising Demand for Container Storage
In the last few weeks, shipping and logistics companies have mesmerized the world with record first-half profits. DP World, one of the largest port operators worldwide, is the latest addition to the list.
Against a backdrop of cargo volume growth, DP World recorded a massive jump in profits over the past six months. According to results released on Thursday, DP World’s earnings increased by 52 percent to $721 million in the first six months to June 30, up from $475 million recorded during the same period last year. Buoyed by acquisitions and strong performance of feeder services, revenue grew by 60 percent to $7.9 billion.
DP World’s container revenue per TEU rose by nine percent, driven by higher demand for storage. In total, the company handled 39.5 million TEU across its global container terminals, up slightly from last year.
“This significant growth demonstrates that our strategy to focus on high margin cargo and to offer customized supply chain solutions will provide sustainable returns in the long run,” said Sultan Ahmed Bin Sulayem, DP World’s chairman and chief executive.
However, DP World noted it expects the growth to moderate in the second half of the year, with the near-term outlook uncertain because of the challenging macro-economic environment and port disruptions.
Recent data from Drewry’s World Container Index show that spot rates are continuing to decline, heading towards a market normalization. The Shanghai-Rotterdam rates declined by five percent last week, one of the largest weekly declines seen since June 2020.