DP World Achieves Record Revenue in 2024 Amid Profit Challenges
Container terminal operator DP World witnessed a significant revenue uptick in 2024, despite facing profit erosion driven by increased financial pressures and a turbulent global economy.
Privately-owned DP World, headquartered in Dubai, reported a total revenue of $20 billion for the year 2024, marking a substantial 9.7% increase from the previous period. This surge in revenue was complemented by a peak in adjusted earnings before taxes, depreciation, and amortization (EBITDA), achieving a record $5.5 billion, a robust growth of 6.7% year-over-year with a solid margin of 27.2%. Operating profit, calculated as earnings before interest and taxes (EBIT), rose to $3.36 billion, ascending 10.2% from $3.06 billion the previous year.
Revenue from ports and terminals per twenty-foot equivalent unit witnessed a 13.9% rise on a like-for-like basis, driven by vigorous growth in both the Middle East and Americas.
Despite this success, the company's net profit took a hit, decreasing to $1.5 billion, a 2% drop year-on-year. This dip was predominantly due to heightened financing costs and extensive supply chain disruptions affecting global trade. Moreover, profit directly linked to owners fell sharply, over 27%, underscoring the intensified operational and financial strains faced by the company.
DP World boasted an impressive feat with container handling capacities exceeding 100 million TEUs in 2024. This was fueled by strategic capital investments amounting to $2.2 billion, predominantly targeted at growth-heavy markets such as the United Arab Emirates and India. Looking forward, DP World has allocated a budget of $2.5 billion for 2025, with objectives set on wider expansions into emerging regions and refining existing infrastructure.
In line with evolving market dynamics, DP World has been amplifying its focus on logistics and end-to-end integrated supply chain solutions. The firm also reported enhanced cash flow from operating activities, which increased by 18.9% to $5.5 billion.
For further insights, explore more DP World analysis.
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