DP World's H1 profit more than halves amid Middle East tensions
First-half profit fell 59% as the company grappled with shipping disruptions
DUBAI-OWNED ports giant DP World reported a first-half profit on Thursday (Aug 15) that fell 59 per cent as the company grappled with shipping disruptions due to the ongoing Red Sea crisis amid tensions in the Middle East.
Missile and drone attacks in the Red Sea since October by Yemen’s Houthi militants, who say they are acting in solidarity with Palestinians in the Gaza war, have forced many ocean freight firms to re-route vessels away from the Suez Canal to around the Cape of Good Hope on the southern tip of Africa.
DP World’s overall profit attributable to owners of the company was US$265 million in the six months to June 30, down from US$651 million a year earlier, the port operator said.
The company’s revenue rose 3.3 per cent to US$9.34 billion, driven by its logistics as well as ports and terminals divisions, with consolidated container volumes up 3.7 per cent on a like-for-like basis to 25.033 million twenty-foot equivalent units (TEUs).
DP World said the attacks on Red Sea shipping and subsequent rerouting of ships had been a significant disruptor in the supply chain sector, and described its own Middle East, Africa and Europe operations as being “partially impacted”.
The company’s overall adjusted core profit fell by 4.3 per cent to US$2.497 billion for the six months due to the crisis and investments to expand its logistics platform, but DP World said it expects an improved performance for the second part of the year.
DP World was founded in 1972 as a port operator with the development of Port Rashid in Dubai. It is now a global firm with over 110,000 employees across more than 75 countries.
Its business operations cover logistics, ports and terminals and marine services. REUTERS
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