Port operator DP World has attributed its profit of around $1.6 billion despite uncertainty from the intensifying US-China trade war to the company’s resilience and the strength of its portfolio. Its revenue increased by almost 32 percent which stood at around $3.4 billion for the first six months of 2019.
With regard to DP World’s profit, chairman Sultan Ahmed Bin Sulayem told the media, “Despite uncertainty from the trade war and challenging regional geopolitical realities, DP World has been able to deliver a broadly impressive performance in the first half of 2019.”
The company’s profits can be attributed to its recent acquisitions and its diversification strategy. The fourth-largest global marine terminal operator recently began investing in shortsea shipping. Last year, the company bought Denmark’s Unifeeder for a deal worth $764 million. This year, its list of acquisitions includes pan-European logistics platform P&O Ferries and off-shore energy industry supply vessel provider Topaz Marine and Energy.
According to Sultan Ahmed Bin Sulayem, the company’s balance sheet remains strong and the company continues to generate high levels of cash flows. DP World’s ability to generate profits bolsters its ability to invest in future growth.
The Dubai-based port operator recently announced that it has entered into a partnership with Zhejiang China Commodity City Group, a China-based company engaged in the development and operation of commodity trading platforms.
The two companies will develop a wholesale and traders market in Jebel Ali Freezone. The market will be the first smart Freezone market place in the Middle East for the retail and wholesale industries.
DP World will hold a 70 percent share in the joint venture.