The Dubai-based port operator has seen its profits fall significantly as shippers avoid passing through the crisis-hit region
DP World has announced a drop of almost 60 per cent in its half-year profits, partly due to the ongoing shipping issues in the Red Sea.
Revenue for the period ending 30 June rose by 3.3 per cent to US$9.34bn, driven predominantly by good growth in the company’s Ports and Terminals segment.
However, it reported profits of just US$265m this year, down from US$651m for the same period last year. According to chairman and chief executive officer Sultan Ahmed bin Sulayem, disruptions in the Red Sea had affected the firm’s revenues.
“The year 2024 has been marked by a deteriorating geopolitical environment and disruptions to global supply chains due to the Red Sea crisis,” he said. “While the near-term trading outlook remains uncertain due to macroeconomic and geopolitical headwinds, the resilient financial performance of the first half positions us well to deliver stable full year adjusted profits.”
Since November, the Houthis in Yemen have been disrupting the flow of goods in the region to force an end to Israel’s war in Gaza, with shippers electing to circumvent the Cape of Good Hope instead. As a result, shipping has fallen through Dubai’s Jebel Ali Port, home of DP World.
